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DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866 -3567 <br />FAX: (303) 832 -8106 <br />4 May 2012 <br />Ron Thompson <br />New Elk Coal Company, LLC <br />122 West First Street <br />Trinidad, CO 81082 <br />Re: New Elk Mine (Permit No. C- 1981 -012) <br />Minor Revision 114 — Six Exploration Holes <br />Preliminary Adequacy Review <br />Dear Mr. Thompson: <br />The Colorado Division of Reclamation, Mining and Safety (Division) has completed a preliminary <br />adequacy review of the material submitted for Minor Revision 114 by the New Elk Coal Company, LLC <br />(NECC) for the New Elk Mine. Minor Revision 114 proposes to permit the drilling of six exploration <br />holes within the permit boundary. Additionally, MR -114 proposes to update the text and reclamation <br />cost estimate to reflect changes to the exploration drilling approved, but not completed, in MR -107. <br />Based on the preliminary adequacy review, the Division has the following questions and comments. <br />Since the proposed decision date for MR -114 is 14 May 2012, please provide your responses to this <br />letter as soon as possible. <br />Rule 2.04.4 — Cultural and Historic Resource Information <br />1. Based on a review of Exhibit 7 — Archaeological Information, it does appear as though NECC <br />has performed an archaeological and cultural resources survey of the sites where the exploration <br />holes are proposed. Please provide documentation that an archaeological survey has been <br />completed for the areas where the exploration holes are proposed on DPW lands. If no <br />archaeological and cultural resources survey has been performed, please complete one and <br />forward it to the Division for review. <br />Rule 2.03.6 — Right of Entry <br />STATE OF COLORADO <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />— &— <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta Pineda <br />Director <br />2. Five of the six exploration holes proposed with Minor Revision 114 (all except NE- 01 -12) are <br />located on DPW surface. Please provide written documentation from DPW that NECC has the <br />legal right to enter and the legal right to disturb the surface in these areas. If this documentation <br />already exists in the approved permit, please provide its location. <br />Office of Office of <br />Mined Land Reclamation <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />