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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: Lorencito Canyon Mine (Permit No. C- 1996 -084) <br />2012, Q2, Excess Spoil Fill Inspection Reports <br />Dear Mr. Thompson, <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 />The Division received New Elk Coal Company's 2012 Second Quarter Excess Spoil Fill Inspection <br />Reports on August 28, 2012. The reports state that spoil fill numbers 7, 8 and 9 were inspected on June <br />16, 2012, which is acceptable and occurred with the second quarter of 2012. <br />All excess spoil fills inspected are in final reclamation and have been through phase one bond release. <br />Following review, the Division finds that the report is in compliance with the following rules: <br />1. 4.09. 1 (1 1)(a) — The fill was inspected for stability quarterly by a qualified professional <br />specialist experienced in construction of earth and rockfill embankments under the direction of <br />a qualified professional engineer during the (5) the revegetation period. There were no signs of <br />stability issues, seeps or springs at any of the spoil fills during the time of these inspections. <br />2. 4.09.1(11)(c) — [No longer applicable during this stage of construction] <br />Note, however, that the report is not in compliance with the following rules: <br />1. 4.09. 1 (1 1)(b) —The Division should receive a certified report within two weeks of the <br />inspection date. <br />As a reminder, per Rule 4.09.1(11)(b), a copy of these reports should be retained at the mine site. <br />Finally, the reports in question were submitted with a cover letter referring to a different type of <br />inspection at a different mine (Q2 Sediment Pond Inspections at the New Elk Mine). Presumably this <br />was the result of a simple clerical error. <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 />