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J. E. STOVER & ASSOCIATES, INC. <br />P.O. Box 60340 <br />GRAND JUNCTION, COLORADO 81506 <br />PHONE: (970) 245 -4101, FAX 242 -7908 <br />MINE ENGINEERING <br />MINE RECLAMATION <br />March 1, 2012 <br />Mike Boulay <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />Re: McClave Canyon Mining, LLC <br />McClave Canyon Mine <br />Permit Revision Application No. 2 <br />Expand Mine Plan and Surface Facilities <br />Permit number: C- 1980 -004 <br />Dear Mr. Boulay: <br />CIVIL ENGINEERING <br />CONST. MANAGEMENT <br />The DRMS' letter dated February 15, 2011, transmitted its comprehensive adequacy review <br />for the referenced permit application. The current decision deadline for the permit revision <br />application should have been on or around July 15, 2011. <br />As DRMS is aware by BLM letter dated November 30, 2010, the BLM determined an <br />Environmental Assessment (EA) would be required for the surface and mine plan expansion <br />at the McClane Canyon Mine, with a projected Record of Decision date of July 2011. The <br />EA process has run into substantial delays, with the most recent letter from the BLM dated <br />February 7, 2012 relinquishing their lead role in the EA process for the surface expansion <br />portion of the project. The letter states, "BLM will not be completing the environmental <br />analysis of MCM PR -02 application. Instead we will be providing comments to you and <br />OSM during the adequacy review and environmental analysis for the permit revision ". <br />By DRMS' letter to McClane Canyon Mining (MCM), dated February 23rd, 2012, DRMS has <br />requested MCM respond to the BLM letter with a substantive response, and request a 60- <br />day extension to the proposed decision date. <br />On behalf of MGM, please extend the proposed decision deadline for the referenced permit <br />application to from July 15, 2011 to May 1, 2012. <br />Sincerely, <br />Tamme Bishop, P.E. <br />Project Engineer <br />Cc: Corey Heaps, Rhino Energy <br />