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E~~A <br />S co~co,,,por Seneca Coal Company <br />September 27, 2007 <br />Mr. Mike Boulay <br />Division of Reclamation, Mining and Safety <br />101 South 3*~, Suite 301 <br />Grand Junction, CO 81501 <br />(970) 242-5025 <br />RE: Seneca II Reclamation Bonding Estimate Clarification <br />Mr. Boulay, <br />Seneca is in the process of preparing a Phase II bond release application for the Seneca II Mine. It has come to our <br />attention that the current (6/11/07) reclamation bond estimate combines both pre-]aw and permanent prograzn costs <br />into various task lines. <br />The Division currently holds $7,994,395 <br />Revised Liability (6/11/07) $7,183,489 <br />Pre-Law $1,355,000 ........................... <br />Permanent Program $5,828,489 ........................... <br />A bond release application has been submitted Eor the Pre-Law area and the inspection was conducted on 9/12/07. <br />The bond release affects the $1,355,000 lump sum previously assigned to the Pre-Law area by the Division. Since a <br />lump sum of $1,355,000 was withheld for the Pre-Law area, somehow this amount must be subtracted from the Direct <br />Costs in the reclamation cost estimate. <br />SCC respectfiilly requests that the Division provide some input as to how to resolve/clarify this issue so that SCC can <br />proceed with the Phase II bond release process. Also SCC has not received updated reclamation cost estimate sheets <br />associated with the Division's approval of TR-41 (dated June 11, 2007) which increased the bond by $23,447. These <br />updated sheets are needed to correctly document the upcoming bond release request. You can contact me at (970) 276- <br />5217 or (970)'846_3648"- - <br />Thank you. <br />/°," r'~ <br />Roy Kano <br />Reclatation Manager <br />P.'/fayJamer/Jenera l7/Bamd Rekme/PINUe ///Ron&'mg C/a'rfrraliom Ur <br />Seneca Coal Company • P.O. Box 670 • Hayden, Colorado 81839 <br />Telephone (970) 2765219 • FAX (970) 2785222 <br />