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ENE <br />�� Coal Company <br />November 15, 2012 <br />Babson Farms, Inc. <br />400 N. Michigan Ave. <br />Suite 1120 <br />Chicago, Illinois 60611 <br />RE: Seneca II -W Mine (Permit C -82 -057) <br />Phase I Bond Release Application (SL -04) <br />To Whom It May Concern: <br />Seneca Coal Company <br />Seneca Coal Company (SCC), 37796 Routt County Road 53, P.O. Box 670, Hayden, Colorado 81639, is <br />requesting partial release of Phase I bond liability on a portion of the 1,290.2 disturbed acres within the <br />permit boundary at the Seneca II -W Mine (CDRMS Permit No. C -82 -057, approved December 31, 1985). <br />The CDRMS completed a review and evaluation of the initial SL -2 Phase I bond release application in <br />May 2010 and approved release of 739.1 acres. In March 2011, the CDRMS completed a review and <br />evaluation of the SL -3 Phase I bond release application and approved release of another 412.35 acres. <br />SCC is now applying for another Phase I release (SL -04) on an additional 138.7 acres. Currently, a <br />reclamation bond in the amount of $ 6,255,552.61 is in place of which $ 1,090,188.00 are being requested <br />for release. <br />The Seneca II -W Mine is located approximately seven (7) miles south of the Town of Hayden, Colorado <br />off of Routt County Road 53. The USGS 7.5 Minute Quadrangle Maps of Hayden Gulch, Hayden, <br />Dunckley, and Mt. Harris, contain the described permit area. The total permitted area is approximately <br />3,878.5 acres. The permitted disturbed area contains 1,290.2 acres. Surface ownership is predominately <br />private, with right of entry based on a variety of private leases, subleases and easements. The permit area <br />also includes limited areas of federal and state controlled surface. <br />Seneca Coal Company • P.O. Box 670 • Hayden, Colorado 81639 <br />Telephone (970) 276 -5217 <br />