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:~.. <br />~~ MOUNTAIN COAL <br />~-~~" ~COMPANYLLC. <br />A Subsidiary ofArch Western Resources, LLC <br />September 13, 2006 <br /> West Elk Mine <br /> POBox 591 <br /> 5174 Highway l33 <br />q- ~ ~ ~(~ ~1 <br />S ~"° WSJ somerset, CO 81434 <br />(970) 929-5015 <br /> <br />srP ~ a Zoos Fax (970) 929-5595 <br />Division o` ~'~lamation, <br />Mining and Safety <br />Mr. Willy Kistler, President <br />Minnesota Canal and Reservoir Co. Ina (MC&RC) <br />41103 Lamborn Mesa Road <br />Paonia, CO 81428 <br />RE: Mountain Coal Company L.L.C. (MCC), West Elk Mine, Request for Flume <br />Installation on Dry Fork Minnesota Creek at the Inlet of Minnesota Reservoir. <br />Dear Mr. Kistler: <br />MCC, West Elk Mine, is requesting that a flume be placed at the inlet of Minnesota Reservoir on <br />Dry Fork Minnesota Creek, proximately located in the NW 1/4NE1/4 Section 32, T. 13 S., R .90 <br />W. 60i P.M. The flume will benefit the reservoir company, MCC, USFS and the State Engineers <br />Office. This request is being made to the reservoir company as a result of our meeting with the <br />USFS on Monday, September 11, 2006. You may recall that this request was made of MCC by <br />Nancy Schwieger of the USFS. <br />The Parshall flume is approximately 9 feet long, 30 inches wide, and 24 inches deep. MCC <br />expects the reservoir company will approve of the flume installation between the 100% fill and <br />the 75% fill level of the existing reservoir basin. The purpose of the flume is to record the <br />quantities of water reporting to Minnesota Reservoir below and downstream of MCC's active <br />coal mining operations. The data will allow MCC, Minnesota Canal and Reservoir Company, <br />and other regulatory authorities in determining if water has decreased over the length of the <br />basin. If it is determined that coal mining activities have injured downstream interests, then <br />MCC will protect the downstream interests by either invoking MCC's protection plan or <br />augmentation plan as required by stipulation and law. <br />MCC proposes to amend the Special-Use Pemut with the USFS, and gain the MC&RC approval <br />to place the flume by October 1, 2006. As such immediate approval is needed. This date <br />corresponds to the beginning of the Water Year. MCC will invite Division of Water Resources, <br />Office of the State Engineer, Water Commisioner, the MC&RC President, and the USFS to <br />observe the installation of the flume. Placement of the flume would be by accessing the reservoir <br />basin with atrack-hoe at the emergency spillway and walking it azound to the inlet area and <br />placing in the Dry Fork Minnesota Creek. <br />Please let me know if this is acceptable to you, the Boazd Members of the Minnesota Canal and <br />Reservoir Co. Inc., and the shazeholders at your earliest convenience. We understand that this <br />subject could be presented to the Board as early as Wenesday the 200' of September. MCC <br />