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= Mountain Coal Company <br />April 17, 2013 <br />Division of & cl ecla my ion , <br />Mr. James R. Stark Mining <br />Colorado Department of Natural Resources <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />Re: Mountain Coal Company, LLC, West Elk Mine; Permit No. C- 1980 -007; <br />Quarterly Summary of Subsidence Observations, 1 Quarter 2013 <br />Dear Mr. Stark, <br />Mountain Coal Company, LLC (MCC) began longwall mining the E -Seam in December 2008. To date, <br />MCC has completely mined -out panels El, E2 and E3, and began longwall mining panel E4 during the 4 <br />Quarter of 2012. At the end of 1 Quarter 2013 MCC had mined up to cross -cut 52 within the E4 panel. <br />Near the end of the quarter stock ponds P30 and P31 came within twice the angle of draw, however <br />because of the weather conditions the area potentially affected by mining was inaccessible and not visible <br />for the quarterly site inspection. Inspections will continue when road and weather conditions allow. <br />Mining was not within a mile of Monument Dam. Routine inspection reports for Monument Dam, Forest <br />Service Roads, and Stock Ponds are included with this letter. <br />Should you have any questions please feel free to contact me at (970) 929 -2308. <br />Sincerely, <br />Jessica Loveland, P.E. <br />Environmental Engineer <br />cc: R. Taylor - USFS <br />K. Welt — MCC <br />W. Norris — MCC <br />Availability of Records File - CDRMS <br />RECEIVE <br />APR 18 2013 <br />Enclosures: US Forest Service Road Inspections - First Quarter 2013 <br />Stock Pond Inspections — First Quarter 2013 <br />Monument Dam Inspections — First Quarter 2013 <br />Mountain Coal Company, LLC <br />West Elk Mine <br />P 0 Box 591 <br />Somerset, CO 81434 <br />Jessica A. Loveland, P.E. <br />Environmental Engineer <br />jlovelandarchcoal.com <br />phone: 970 929 2308 <br />Page 1 of 1 <br />