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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 />November 5, 2012 <br />Kathleen G. Welt <br />Mountain Coal Company, LLC <br />P.O. Box 591 <br />Somerset, CO 81434 <br />Re: West Elk Mine (Permit No. C- 1980 -007) <br />Bond Release Application No. 3 (SL -3) <br />Dear Ms. Welt: <br />COLORADO <br />ID IV 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 />In accordance with Rule 3.03.2(5)(b) of the Rules and Regulations of the Colorado Mined Land <br />Reclamation Board for Coal Mining (Rules), you are hereby notified that the Division's decision <br />to Approve Bond Release Application No. 3 for the West Elk Mine became final on September <br />21, 2012. No requests for an adjudicatory hearing on our proposed decision were received. <br />Bond Release No. 3 reduces your reclamation liability by $470,488.00. The current liability is <br />now $14,135,630.30. If you choose to reduce or replace your existing bond, it must equal or <br />exceed $14,135,630.30. The Division suggests you provide a copy of this letter, the OSM <br />concurrence letter dated October 10, 2012 and the BLM concurrence memorandum (not dated <br />but stamped received on October 9, 2012) to your bonding company for written evidence for <br />approval to reduce your bond. Please find these documents attached. <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, DRMS <br />Enclosure <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />