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MINE ENGINEERING <br />MINE RECLAMATION <br />May 10, 2012 <br />J. E. STOVER & ASSOCIATES INC. <br />James Stark <br />Division of Reclamation, Mining and Safety <br />1313 Sherman St., Room 215 <br />Denver, CO 80203 <br />2352 NORTH 7 STREET, UNIT B <br />GRAND JUNCTION, COLORADO 81501 <br />PHONE: (970) 245 -4101, FAX 242 -7908 <br />Re: New Elk Mine (Permit No. C- 1981 -012) <br />Minor Revision 114, Six Exploration Holes <br />Adequacy Response #1 <br />Dear Mr. Stark: <br />CIVIL ENGINEERING <br />CONST. MANAGEMENT <br />On behalf of New Elk Coal Company (NECC), the following responses have been prepared in <br />reply to the Division of Reclamation, Mining and Safety (DRMS)' comments and concerns <br />regarding the above - referenced minor revision, stated in the letter dated May 4, 2012 . <br />1. DRMS - Based on a review of Exhibit 7 — Archaeological Information, it does not appear as <br />though NECC has performed an archaeological and cultural resources survey of the sites <br />where the exploration holes are proposed. Please provide documentation that an <br />archaeological survey has been completed for the areas where the exploration holes are <br />proposed on DPW lands. If no archaeological and cultural resources survey has been <br />performed, please complete one and forward it to the Division for review. <br />NECC - A cultural resource inventory will be performed on the exploration hole drill sites. <br />The cultural resource inventory report will be forwarded to the DRMS as soon as it is <br />available. <br />2. DRMS - Five of the six exploration holes proposed with Minor Revision 114 (all except NE- <br />01 -12) are located on DPW surface. Please provide written documentation from DPW that <br />NECC has the legal right to enter and the legal right to disturb the surface in these areas. If <br />this documentation already exists in the approved permit, please provide its location. <br />NECC - See Exhibit 34 Addendum, Division of Wildlife Lease for the holes located on DPW <br />lands. NECC has been drilling exploration holes on DPW lands using XTO constructed <br />roads since at least 2010. <br />3. DRMS - All of the exploration holes proposed in MR -114, with the exception of NE- 01 -12, <br />are located adjacent to existing roads that are used by XTO to access their gas wells and <br />facilities. Please provide documentation that NECC has the legal right to use these roads for <br />mining related activities and that drilling exploration holes adjacent to these roads and <br />