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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 16, 2012 <br />St. Paul Fire and Marine Insurance Company <br />385 Washington Street <br />St. Paul, MN 55102 <br />Re: West Elk Mine (Permit No. C- 1980 -007) <br />Bond Release Application No. 3 (SL -3) <br />Bond No. <br />Dear Sir or Madam: <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 />This letter, as required by Rule 3.03.2(5)(a) of the Rules and Regulations, is to inform you that the <br />Division of Reclamation, Mining and Safety has issued a proposed decision to Approve Bond Release <br />Application No. 3 for the West Elk Mine. This decision will be published in the Delta County <br />Independent as soon as possible. Publication of the notice initiates a thirty (30) day public comment <br />period. If, within thirty days, there are no requests for an adjudicatory hearing, the decision will become <br />final. <br />The bond for the operation is a Corporate Surety issued by your company (Bond No. , in the <br />amount of $10,000,000.00. The proposed release amount is $470,488.00. <br />Please be aware that this notification is not a request to initiate any action by St. Paul Fire and Marine <br />Insurance Company concerning Bond No. and is for your information only. Should <br />Mountain Coal Company, LLC chose to take action with regard to this bond release, they will contact <br />you. <br />If you have questions or need additional information, please contact me. <br />Sincerely, <br />James R. Stark <br />Environmental Protection Specialist <br />cc: Mary Rodriguez, CDRMS <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />