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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman St, Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 8663567 <br />FAX: (303) 832-8106 <br />28 Apri12005 <br />Mr Wendell Koontz <br />Mountain Coal Company <br />P.O. Box 591 <br />Somerset CO 51434 <br />SUBJ: C-1980-007; NOI CX-2005-212-06 application <br />Deaz Mr. Koontz: <br />COLORADO <br />DIVISION OF <br />MIN &RALS <br />GEOLOGY <br />RECLAMATION•MINING <br />SAf ETY•SUENCE <br />Bill Owens <br />Governor <br />Russell George <br />Executive Direcor <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />The Division has received your Notice of Intent to conduct coal exploration (NOI-2005- <br />212-06), submitted 22 Apri12005, and has made the following fmdings: <br />1. The application is incomplete. <br />2. The project qualifies as coal exploration rather than coal mining. <br />3. Your project will substantially disturb the natural land surface. Therefore you will be <br />required to submit a bond to cover the cost of reclamation. The Division has received <br />the pertinent information and will calculate the bond liability. <br />The Division has several questions/comments on the application. <br />A. The application can't be called complete until documentation is received by the <br />Division for right-of--entry from the surface owner or management agency. MCC has <br />reported that this documentation from the US Forest Service surface will be forwazded as <br />soon as it is available. <br />B. Please provide documentation ofright-of--entry on the referenced private coal <br />lease(private surface. <br />C. Please add surface ownership boundaries to the map. <br />D. In the discussion of road construction on page 10, please specify that any new road <br />created will conform to the performance standazds for light-use roads in Rule 4.03.3. <br />E. With regazd to the discussion of water usage on page 11, please confirm that the <br />Division will be provided with documentation that no infringement or loss of water rights <br />will occur if MCC has to withdraw water in the vicinity of the drill pads rather than <br />transporting it by water truck. <br />Office of Office of Colorado <br />Mined Land Reclamation Active and Inactive Mines Geological Survey <br />