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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St, Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832 -8106 <br />June 17, 2013 <br />Ron Thompson <br />New Elk Coal Company, LLC <br />12250 Highway 12, <br />Weston, CO 81091 <br />Re: Lorencito Canyon Mine (Permit No. C- 1996 -084) <br />2013, Q1, Excess Spoil Fill Inspection Reports <br />Dear Mr. Thompson, <br />COLORADO <br />D I v i s 10 N OF <br />RECLAMATION <br />MINING <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike Nng <br />Executive Director <br />Loretta E. Pineda <br />Director <br />The Division received New Elk Coal Company's 2013 First Quarter Excess Spoil Fill Inspection <br />Reports on May 15, 2013. The reports state that spoil fill numbers 7, 8 and 9 were inspected on March <br />29, 2013, which is acceptable and occurred with the first quarter of 2013. <br />All excess spoil fills inspected are in final reclamation and have been through phase one bond release. <br />Following review, the Division finds that the report is in compliance with the following rules: <br />1. 4.09. 1 (1 1)(a) — The fill was inspected for stability quarterly by a qualified professional <br />specialist experienced in construction of earth and rockfill embankments under the direction of <br />a qualified professional engineer during the (5) the revegetation period. There were no signs of <br />stability issues, seeps or springs at any of the spoil fills during the time of these inspections. <br />2. 4.09. 1 (1 1)(c) — [No longer applicable during this stage of construction] <br />Note, however, that the report is not in compliance with the following rules: <br />1. 4.09. 1 (1 1)(b) The Division should receive a certified report within two weeks of the <br />inspection date. <br />As a reminder, per Rule 4.09.1(11)(b), a copy of these reports should be retained at the mine site. <br />The report notes that some additional armoring of the upper west lateral ditch on fill 8 has taken place, <br />but more is required and is scheduled for 2013 Q2. <br />There is no mention in the report of some issues that were identified in the DRMS inspection report of <br />October 19, 2012. These include: <br />• Gullying on fill 7, to be monitored <br />• Armoring of ditches draining fill 9, to be repaired <br />Sincerely, <br />%1 <br />Leigh Simmons. <br />Environmental Protection Specialist <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />