2012-04-25_REVISION - C1981012 (2)

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MINE ENGINEERING CIVIL ENGINEERING MINE RECLAMATION CONST. MANAGEMENT April 20, 2012 Janet Binns Division of Reclamation, Mining and Safety 1313 Sherman St., Room 215 Denver, CO 80203 Re: New Elk Mine Permit C- 1981 -012 Minor Revision No. 114, Six (6) Exploration Holes Dear Ms. Binns: On behalf of New Elk Coal Company, enclosed is an application for a minor revision to allow six exploration holes to be drilled within the permit boundary. The holes are NE- 01 -12, NE- 05 -12, NE- 11 -12, NE- 15 -12, NE- 16 -12, NE -18 -12 as shown on Map 20 Sheet 1. All of holes except NE -01 -12 are located of DPW surface. The exploration holes will require small drill pads and mud pits. Sedimentation control for the drill sites will be provided as shown on Map 25 and explained in Exhibit 19(20) pages 1 -17. The drill holes will be sealed in accordance with permit application pages 2.05 -53a and 54. Drill hole NE -01 -12 is over 100 feet from the Purgatoire river and located above the area that would be considered alluvial valley floor. Amended page 2.05 -5e explains that one exploration hole was drilled in early 2012 and six additional exploration holes will be drilled in mid 2012. Permit page 2.05 -1Oc explains the sedimentation control plan for the exploration holes. The disturbed area increases 1.4 acres as a result of this revision. The affected area does not increase since the areas have been undermined. MR -107 approved three exploration holes but only NE -17 -12 was drilled. Therefore MR -107 was over bonded by $10,870 ($15,774 - $4,904). Revised Exhibit 28 pages are provided for MR- 107. The reclamation estimate for MR -114 is $19,961. Therefore the net increase is reclamation bond is $9,091 ($19,961 - $10,870). Consulting Engineer J. E. STOVER & ASSOCIATES, INC. 2352 NORTH 7 STREET, UNIT B GRAND JUNCTION, COLORADO 81501 PHONE: (970) 245 -4101, FAX 242 -7908 ikece APR 2.5 n1 pivtsion Kec∎aa e y n, Mining a nd S t