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STATE OF COLORADO <br />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 />July 5, 2012 <br />Ron Thompson <br />New Elk Coal Company, LLC <br />122 West First Street <br />Trinidad, CO 81082 <br />Re: Lorencito Canyon Mine (Permit No. C- 1996 -084) <br />Permit Renewal Application No. 3 (RN -3) <br />Preliminary Adequacy Review <br />Dear Mr. Thompson: <br />COLORADO <br />Q I V I S I O N O F <br />RECLAMATION <br />MINING <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />The Colorado Division of Reclamation, Mining, and Safety (Division) has reviewed New Elk <br />Coal Company, LLC's Permit Renewal, RN -3. Please respond to the following adequacy <br />comments as necessary: <br />1. Based on a review of the ownership and control section of the currently approved permit <br />application package for the Lorencito Mine, comparing the section with the current <br />information in the Applicant violator System (AV S), there is one discrepanciy that will <br />need to be addressed by New Elk Coal Company, LLC. Please address the discrepancy <br />listed below: <br />a) Please clarify the owner of New Elk Coal Company, LLC, AVS lists New Elk <br />Coal Company, LLC as 100% owner and the operator has Cline Mining <br />Corporation as 100% owner. <br />2. There are a significant number of landowners that are listed on Map 2.03.4 -1 that are not <br />listed on page 2.03 -6 or 2.03 -7 and landowners that are listed on pages 2.03 -6 and 2.06 -7 <br />that are not listed on Map 2.03.4 -1. Please update the current surface and mineral <br />owners of record and update the above mentioned pages and maps as appropriate. <br />3. Page 2.03 -8 identifies compliance information and Notice of Violations received within <br />the last five years. Please update this section to identify violations by New Elk Coal <br />Company, LLC or Cline Mining. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />