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OXBOW MINING, LLC <br />3737 Hwy 133 P.O. Box 535 Somerset, Colorado 81434 USA Tel (970)929 -5122 Fax <br />(970)929 -5177 <br />May 8, 2012 <br />Mr. Brock Bowles <br />Environmental Protection Specialist <br />Colorado Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />Re: Oxbow Mining LLC, Permit No. C- 1981 -022 <br />PR -06 Application for a Permit Revision, Response to October 7, 2011 PAR. <br />Dear Mr. Bowles, <br />The purpose of this letter is to respond to the October 7, 2011 PAR for the subject PR -06. We <br />apologize for the delay in finalizing this PR as the project timelines were dictated by the <br />BLM/USFS mineral leasing activities which are out of Oxbow's control. <br />Updated Leasing Information: <br />Oxbow Response to October 7, 2011 PAR: <br />• Page 1 <br />RECEIVED <br />MAY 09 ? <br />Division or <br />Mining and Safely <br />Oxbow still intends for the PR -06 to add 2,247,43 acres of Federal Land to the Permit area as <br />shown on the attached Map 2.05 -M2, Sheet 1 of 2, Elk Creek Mine, 5 Year Mining Plan. The <br />original PR -06 application added the additional Permit Area acreage to accommodate the <br />inclusion of 1) the 158.79 Lease Modification #5 to the COC -61357 parent federal coal lease and <br />2) the 786.79 acre COC -70615 East Elk Creek Federal coal lease tract. <br />We are pleased to provide the attached copy of the modified COC -61357 Lease which will <br />replace the current lease located in PAP Volume 5, Exhibit 2.03 -El, Item 2. <br />We are also encouraged that the Competitive Lease sale for COC -70615 is scheduled for May <br />15, 2012 and assume that Oxbow will be the successful bidder. Upon final issuance of the COC- <br />70615 lease, we will include this lease into the PAP as soon as we receive it. However, due to <br />timing issues, we believe it is appropriate to withdraw the COC -70615 least tract from this PR- <br />06. The inclusion of Lease COC -70615 will be submitted under separate cover as PR -07. <br />Item 1. Identification if interests. <br />Oxbow has submitted an update and subsequent approval of the Ownership and Control <br />Information under MR -98. <br />