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MINE ENGINEERING <br />MINE RECLAMATION <br />July 9, 2012 <br />Dear Mr. Trujillo: <br />Zach Trujillo <br />Division of Reclamation, Mining and Safety <br />1313 Sherman St., Room 215 <br />Denver, CO 80203 <br />Re: <br />J. E. STOVER & ASSOCIATES INC. <br />2352 NORTH 7t" STREET, UNIT B <br />GRAND JUNCTION, COLORADO 81501 <br />PHONE: (970) 245 -4101, FAX 242 -7908 <br />New Elk Mine Permit C- 1981 -012 <br />Technical Revision Application No. 64 <br />Shaft Installation, Adequacy Response No. 1 <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 technical revision, stated in the letter dated June 1, 2012 . <br />1. Please provide a blasting plan for the proposed technical revision in accordance with Rule <br />2.05.3(6)(a). While the language of Rule 2.05.3(6)(a) suggests this blasting pertains to <br />surface mines, Rule 2.05.3(6)(a) is directly related to Rule 4.08 which has requirements <br />that relate to underground mines as well. <br />NECC - An updated blasting plan was submitted with TR -58. Please refer to Exhibit 26. <br />2. It is our understanding that a future railroad track or tracks will be constructed from <br />Trinidad to New Elk Mine within the next 12 to 18 months. According to the maps with the <br />proposed technical revision, it appears that the future railroad track(s) will run through the <br />ventilation shaft and/or the containment. Is this a map error? If this is not an error, how <br />does NECC plan to address this with the future railroad track(s)? <br />NECC - The railroad tracks will be located north of the shaft and south of the containment. <br />3. It is the Division's understanding that water collected in the containment area will be either <br />pumped or hauled to Pond 7. If the water is pumped from the containment area to Pond 7, <br />will the required piping system be permanent? If so, please provide an adjusted bond, <br />permit pages and maps to account for the permanent piping. <br />NECC - Any piping installed would be buried for freeze protection so no additional <br />bonding should be required. The DRMS does not typically require a bond for underground <br />pipe removal. <br />