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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 />September 27, 2012 <br />Ron Thompson <br />New Elk Coal Company, LLC <br />122 West First Street <br />Trinidad, CO 80182 <br />Re: New Elk Mine (Permit No. C- 1981 -012) <br />2012, Q3, Sediment Pond Inspection Reports <br />Dear Mr. Thompson, <br />COLORADO <br />D I V 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 />The Division received New Elk Coal Company's 2012 Third Quarter Sediment Pond Inspection <br />Reports on September 18, 2012. The reports state that pond numbers 1, 4, 6, 7 and 8; RDA <br />containments SW, SE and North; and WP containments 1 and 2 were inspected on September 13, 2012, <br />which is acceptable and occurred with the third quarter of 2012. <br />The reports describe the adequacy of the vegetative cover on ponds 1, 4 and 8 as "excellent" or <br />"moderate ", and on ponds 6 and 7 as "few ". No concerns are raised about erosion, stability or storage <br />capacity. <br />Pond 1 was not discharging, but was close to the primary discharge level. A new discharge metering <br />system is in place on this pond. <br />Improvements have been made to the discharge outlet and upstream embankment of pond 4. <br />Consistent with the Division's observations, the discharge valve on pond 6 is closed. In discussion, the <br />Division has been assured that NECC is in no danger of impounding water beyond its water rights. <br />None of the containment areas are holding significant water, despite recent rainfall. Some erosion <br />forming gullies are noted at RDA containment North which should be monitored and addressed as <br />necessary. <br />Finally, the timely submission of these reports is much appreciated. <br />Sincerely, <br />Leigh Simmons. <br />Environmental Protection Specialist <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />