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n`n`n <br />State <br />of <br />C'blorado <br />Exploration Files <br />State.co.us Executive Branch Mail - Eploration Files <br />Russell - DNR, Elliott <elliott.russell @state.co.us> Thu, Mar 14, 2013 at 2:46 PM <br />To: Kathy Welt <kwelt @archcoal.com> <br />Cc: Alysha Hernandez - DNR <alysha.hernandez @state.co.us >, Jason Musick - DNR <jason.musick @state.co.us> <br />Kathy, <br />The Colorado Division of Reclamation, Mining, and Safety (Division) is in the process of reviewing <br />outstanding Notices of Intents (NOI) on file that remain open. As a part of this review, the Division is <br />required to update the liability associated with these NOls per Rule 3.02.2(4). Mountain Coal <br />Company (MCC) has four of these NOls. This email supersedes the Open Exploration Projects letter <br />dated December 10, 2012. The information in that letter has been revised to reflect the Division's new <br />research on these NOls. <br />1) X- 2005 - 212 -06 <br />A $53,629.00 bond is held for the project known as the Dry Fork and Lions Mesa Exploration Drilling <br />located in Sections 1, 2, 11, 12, and 15 of Township 14N Range 90W in Gunnison County. This NOI <br />was filed on April 20, 2005. This NOI proposed to drill 6 exploration sites. On January 25, 2006, the <br />Division received the drill hole abandonment and final reclamation reports for sites 05 -11 -1, 05 -1 -1, <br />and 05 -12 -1. It was noted in these reports that 05 -11 -1 and 05 -12 -1 were converted into monitoring <br />wells. As of a September 12, 2006 inspection, another site had been drilled known as SST -1. <br />According to MCC, via a phone conversation on December 6, 2012, the final two sites, DDD and <br />GGG, were never drilled. <br />We ask that you consider the following so that we can both close out this NOI from our files: <br />1. A. Submit Abandonment and the Final Reclamation Reports for site SST -1. Please indicate on <br />this report that sites DDD and GGG were not drilled. As per Rule 4.07.3(3), the operator shall submit <br />abandonment report within 60 days after abandoning a drill hole. <br />2. B. Submit a letter to the Division officially requesting bond release. <br />3. C. Arrange with the Division for an on -site inspection of the exploration reclamation. <br />With regards to the monitoring wells, the exploration liability may be released pending submittal of a <br />request for bond release and one of the following: <br />1. A. Transfer of wells as per Rule 4.05.14 to the landowner. <br />2. B. A Minor Revision to the West Elk mining permit application that includes completion diagrams, <br />https: / /mail.g oog le.conVmai I /u /0 / ?ui =2 &i Ire29129fcb5 &viev�-- pt &search =i nbox&th= 13d6aa727d8cb630 1/3 <br />