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David G. Anderson <br />February 15, 2013 <br />Page 2 of 2 <br />X- 2008 - 142 -13 <br />An $8,123.00 bond is held for the project known as New Horizon North Adjacent /Cypress Block located <br />in Sections 24, 25, 26, T47N, R16W and Sections 11, 12, 24, T46N, R16W in Montrose County. All <br />reports required reports were received March 23, 2009. It is noted that 56 holes were drilled at 32 sites <br />and that hole reclamation was completed by February 19, 2009. This NOI expired June 30, 2009. <br />We ask you to consider the following: <br />1. Submit a letter to the Division officially requesting bond release. <br />2. Arrange with the Division for an on -site inspection of the exploration reclamation. <br />3. If Western Fuels Colorado requests the above mentioned NOI to remain active: <br />a. Please submit a formal letter requesting the expiration to be extended to a date when all <br />activities will be completed, including the reclamation. <br />X- 2008 - 142 -12 <br />A $6,063.00 bond is held for the project known as NH North GW Monitoring Wells located in Section <br />25, T47N, R16W in Montrose County. Reports for 9 monitoring wells and 3 pilot holes were received <br />March 23, 2009. The Final Reclamation Report stated that 9 holes were completed as monitoring wells <br />and not production wells. An amendment, accepted February 15, 2011, added three additional monitoring <br />wells to then project. Reports for these additional `yells have not been received. This NOI expired June <br />-30,2011. <br />We ask you to consider the following: <br />The exploration liability may be released pending submittal of a request for bond release and one <br />of the following: <br />a. If these wells are a part of an operations or reclamation plan for an active mine permit <br />and are currently bonded under another bond instrument. <br />b. Transfer of wells as per Rule 4.05.14 to the landowner. <br />c. Submitting a Drill Hole Abandonment and Final Reclamation Reports after the wells are <br />sealed, plugged, and reclaimed. <br />If Western Fuels Colorado requests the above mentioned NOI to remain active: <br />a. Please submit a formal letter requesting the expiration to be extended to a date when all <br />activities will be completed, including the reclamation. <br />b. Per Rule 2.02.6(3)(a), please submit a report for each 180 -day period of coal exploration <br />activities of the three additional wells. <br />c. Please provide the well permits that are required by the Division of Water Resources. <br />Report forms are located on the Division's website at http: / /mining.state.co.us /. <br />If you have any questions, please contact me at (303)866 -3567 ext. 8147. <br />Sincerely, <br />1 iott R. Russell <br />Environmental Protection Specialist <br />