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OFFICE OF THE GOVERNOR 136 State Capitol Denver, Colorado 80203 Phone (303) 866 -2471 Fax (303) 866 -2003 April 1, 2013 Via email (Director Pizarchik @osmre.gov) Joseph Pizarchik, Director Office of Surface Mining Reclamation & Enforcement f t/S. Department of the Interior South Interior Building, Room 233 1951 Constitution Avenue, NW Washington, DC 20240 Dear Director Pizarchik, STATE OF COLORADO Recellep 117011 John W. Hickenlooper Governor RE: Oxbow Mining, LLC, Elk Creek Mine Federal Mining Plan for Federal Elk Creek East Lease COC -70615 We are writing to inquire about the status of the Oxbow Mining, LLC, Elk Creek Mine Federal Mining Plan Decision Document for the Federal Elk Creek East Lease COC- 70615. Oxbow `s Elk Creek Mine is located in Delta County Colorado and has mined for over 25 years in the North Fork Valley. As you know, coal mining is a critical component in the economy with 1,000 miners employed in the North Fork Valley. The Elk Creek underground mine employs 320 people and produces about 3 million tons of coal annually. Low - sulfur coal from the North Fork Valley is shipped by train to multiple markets, including those in the Midwest who mix it with lower - quality coal to meet air pollution standards. On September 12, 2006 Oxbow applied to the BLM for the Elk Creek East Lease. On May 15, 2012 Oxbow was the successful bidder with the BLM for Federal Coal Lease COC- 70615. On May 29, 2012 Oxbow submitted "Permit Revision" - PR -07 to the Colorado Division of Reclamation, Mining and Safety to add the Federal Lease to the Colorado Mining and Reclamation Permit C- 1981 -022. The Colorado PR -07 approval process was subsequently completed on November 9, 2012. Oxbow is now waiting for federal approval of its Mining Plan from the Department of the Interior (DOI) before they can enter the expansion area. The mine estimates that it will invest over $50 million in the new mine expansion. As you know the Colorado Division of Reclamation, Mining and Safety works closely with the OSM Western Regional Coordinating Center (WRCC) to carry -out the Colorado Surface Coal Mining and Reclamation Act, including permitting, bonding, inspection, and enforcement for all coal mining operations in Colorado. The inter - agency coordination and review process undertaken by both agencies is thorough and requires complete technical analysis of all impacts.