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MINE ENGINEERING <br />MINE RECLAMATION <br />May 4, 2012 <br />Dear Mr. Trujillo: <br />J. E. STOVER & ASSOCIATES, INC. <br />2352 NORTH 7th STREET, UNIT B <br />GRAND JUNCTION, COLORADO 81501 <br />PHONE: (970) 245 -4101, FAX 242 -7908 <br />Zach Trujillo <br />Division of Reclamation, Mining and Safety <br />1313 Sherman St., Room 215 <br />Denver, CO 80203 <br />Re: New Elk Mine Permit C- 1981 -012 <br />Technical Revision Application No. 65 <br />West DWDA Completeness Response #1 <br />On behalf of New Elk Coal Company (NECC), the following responses have been <br />prepared in reply to the Division of Reclamation, Mining and Safety (DRMS)' comments <br />and concerns regarding the above - referenced technical revision, stated in the letter <br />dated April 27, 2012 . <br />1. DRMS: As discussed in Exhibit 42 prepared by Agapito Associates Inc for New Elk <br />Coal Company and submitted with the revision application groundwater was not <br />encountered in any of the borings drilled during the site investigation however Agapito <br />stated that seasonal fluctuations in the ground water surface will likely occur. <br />Furthermore groundwater levels can vary considerably from year to year and the winter <br />of 2011 2012 was not characterized by high precipitation. Therefore it is possible that <br />ground water levels could potentially rise within the proposed waste pile to a level that <br />would impact the stability of the West Development Waste Disposal Area. Therefore <br />the Divisions finds that one of the following is required within the TR 65 <br />submittal: <br />1. A designed underdrain system for the proposed West Development Waste <br />Disposal Area (per Rule 4.10.3 in the Regulations of the Colorado Mined Land <br />Reclamation Board for Coal Mining) or <br />2. An additional slope stability analysis to ensure a long term static safety <br />factor of 1 5 in the event of contact with groundwater per Rule 410 4 or <br />3. Another alternative to ensure that all rules are met including those within <br />4.10 the rules for Coal Mine Waste Banks. <br />NECC: The design analysis section of our report dated April 16, 2012 did in fact include <br />consideration of an increase in groundwater level to account for possible seasonal <br />fluctuations. As noted in the report, groundwater was not encountered during the field <br />investigation, which included the advancement of four borings to depths ranging from <br />14.5 to 30 feet below ground surface (ft bgs). The lowest elevation to which the <br />borings were advanced occurred in BH -40 and BH -41. Both of these boring are located <br />near the toe of the proposed development rock disposal pile and on the fringe of the <br />CIVIL ENGINEERING <br />CONST. MANAGEMENT <br />,RECEIVED <br />MAY 0 7 2012 <br />Divislui 1 ur Reclamation, <br />Mining and Safety <br />