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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 />August 7, 2012 <br />Mr. Jim Kiger <br />Oxbow Mining, LLC <br />P.O. Box 535 <br />3737 Highway 133 <br />Somerset, CO 81434 <br />RE: Oxbow Mining, LLC, Permit No. C- 1981 -022 <br />PR -7 Application for a Permit Revision <br />Dear Mr. Kiger: <br />COLORADO <br />D IV IS I ON Of <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 />Oxbow Mining, LLC (OMLLC) has submitted Permit Revision No. 7 (PR -7) for the purpose of <br />modifying the approved permit to add the 725.9 acre COC -70615 Elk Creek East Federal Coal Lease. <br />The Division called the PR -7 application complete for purposes of filing on June 6, 2012. The public <br />notice was published in the Delta County Independent once a week for four consecutive weeks from <br />June 13, 2012 to July 4, 1012. <br />The following adequacy issues and comments are presented for Oxbow's response. <br />Rule 2.03 — Ownership and Control <br />1. David W. Clark is listed as Secretary beginning on date 12/14/2011 and Oxbow Mining, LLC <br />has him listed as Assistant Secretary beginning on 12/31/2003 and ending on 12/14/2011. <br />2. AVS has Oxbow Carbon and Mineral LLC, Oxbow Carbon LLC and Oxbow US Coal LLC <br />listed as 100% owners of Oxbow Carbon LLC. Oxbow Carbon LLC lists Oxbow Carbon and <br />Minerals LLC as 58.68% owners and Oxbow Carbon LLC as 22.06% owners. <br />3. AVS lists William I. KOCH as CEO and 50% owner of Oxbow Carbon and Minerals Holdings, <br />Inc. The report provided by the operator does not report this. <br />4. The AVS lists two violations, please see the attached form. <br />Rule 2.03.6 — Right of Entry and Operation Information <br />1. The Division received a copy of the Federal Coal Lease COC -70615 issued by the Bureau of <br />Land Management on July 10, 2012. No further action is needed. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />