2012-05-04_REVISION - C1981012 (2)

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Rule 2.05.3 — Operations Plan 3. All of the exploration holes proposed in MR -114, with the exception of NE- 01 -12, are located adjacent to existing roads that are used by XTO to access their gas wells and facilities. Please provide documentation that NECC has the legal right to use these roads for mining related activities and that drilling exploration holes adjacent to these roads and facilities is permitted. Additionally, please provide the Division with a description of how exploration hole NE -01 -12 will be accessed, since there is no road shown on Map 20. Rule 2.05.4 — Reclamation Plan 4. Exploration Hole NE -01 -12 is being drilled in an area that is considered an alluvial valley floor along the Purgatoire River. Please provide a description, in section 2.05.4 of the permit, of how NECC will reclaim the drill pad and mud pit to ensure protection of the Purgatoire River AVF and its essential hydrologic functions. Please refer to Rule 4.24 for more information on the essential hydrologic function for an AVF. Rule 2.10 — Maps and Plans 5. On the proposed Map 20 — Structure Inventory Map, the location of exploration hole NE -17 -12 has changed from the location approved in Minor Revision 107. The location of NE -17 -12 on the proposed Map 20 has moved approximately 1,000 feet NNE of the approved location. Please explain why the location of exploration hole NE -17 -12 moved and please update Exhibit 28 -page 233 with its new location. Rule 3.02 — Performance Bond Requirements Page 2 of 3 6. With the submittal of MR -114, NECC has submitted a reclamation cost estimate for the proposed new exploration holes and a credit for the holes approved but not drilled with MR -107. Exploration holes, NE -01 -12 and NE- 18 -12, will not be drilled as deep in the proposed MR -114 as they were in the approved MR -107, thus the credit (the location of exploration hole NE -18 -12 has also been moved but that has no bearing on the cost estimate). The Division has calculated the reclamation cost for the six exploration holes proposed in MR -114 as well as the credit for the two exploration holes not drilled in MR -107 (attached). The total increase in liability for MR -114 is $15,747.00. This increase is based on a reclamation liability of $27,689.00 for the six holes proposed in MR -114 and a credit of $11,947.00 for the two holes not drilled in MR- 107. Please submit a bond rider for $15,747.00 for Minor Revision 114. Rule 4.07 — Sealing of Drilled Holes 7. NECC is proposing to drill exploration hole NE -01 -12 in the AVF along the Purgatoire River. This hole will be different from exploration holes drilled in bedrock and may require a different sealing plan. Please provide a description of how NECC will seal exploration hole NE- 01 -12, which is located in the Purgatoire River AVF, to ensure the protection of the essential hydrologic function of the AVF. Please include a generalized description of this sealing on permit page 2.05 -54. New Elk Mine MR -114 PAR Letter 4 May 2012