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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, 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 5, 6, 7, 8, 9A and 9 were inspected <br />on September 13, 2012, which is acceptable and occurred with the third quarter of 2012. <br />The reports describe the adequacy of the vegetative cover on the ponds as "excellent" or "moderate ", <br />with the exception of pond 7, which is described as "few ". No concerns are raised about erosion or <br />stability. <br />Pond 7 is identified as having exceeded its design storage capacity. You suggest that the design will be <br />recalculated in the light of reduced run -off and sediment load and that the pond volume requirement <br />may be reduced as an alternative to sediment removal. We await the results of those calculations. <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 />