2012-07-23_REVISION - C1981022 (2)

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s OXBOW MINING, LLC • Page 1 3737 Hwy 133 P.O. Box 535 Somerset, Colorado 81434 USA Tel (970)929 -5122 Fax (970)929 -5177 July 20, 2012 Mr. Foster Kirby Archaeologist OSMRE Western Region 1999 Broadway, Suite 3320 Denver, CO 80202 -3050 Re: Oxbow Mining, LLC., CDRMS Permit No. C- 1981 -022, CDRMS Approval of PR -06. Dear Mr. Kirby: Enclosed, please find a copy of the CDRMS approved permit revision materials for the Oxbow Mining, LLC., CDRMS Permit No.0 -1981 -022, PR -06, The approved permit materials include the following: Vol. 5, Exhibit 2.03 -El, Item 2, Lease COC -61357 (11 pages) PAP pages 2.03 -11, 13 -15, and 2.05 -57. Maps 2.05 -M2 (1 of 2), 2.03-M1 (lof 2, 2of 2) Maps 2.04-M1 (lof 3, 2of 3), 2.04 -M2 (lof 1) Maps 2.04 -M3 (lof 2, 2of 2) RECE JUL 2 7( 117 ratio( Mining and Saleti The CDRMS Decision notes that a "federal mine plan approval needs to be obtained from OSM" in addition to the State permit approval. As we have discussed, consistent with OSM policies and practices, we agreed that it is unnecessary for the OSM to perform a mine plan approval for the following reasons: 1 In addition to the PR -06 permit boundary change, the final PR -06 also included a minor 158.79 Lease Modification #5 to the COC -61357 parent federal coal lease. The additional lease modification area was not a new lease area. 2 Oxbow's total federal lease modifications to the COC -61357 parent lease, even with the inclusion of this recent Mod #5 area, remains under the 960 acre lease modification limit allowed by Federal regulation. 3 Oxbow has operated within the COC -61357 parent lease since first entry on March 01, 2003. 4 The mine plan workings extending into the Mod #5 area are simply the logical extension of the existing mine plan workings in the Parent lease designed to maximize the recovery of federal coal and provide for the safety of the miners with improved ground control.