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National King Coal, LLC Telephone: Fax: <br />(970)385-0528 (970)385-4638 Email: <br />nkc@NKCmine.com <br />P.O. Box 2827 4424 County Road 120 ~-~~-ry <br />Durango, Colorado 81302 Hesperus, Colorado 81326 ^~~ <br />January 18, 2006 <br />State of Colorado RECEIVED <br />Division of Minerals and Geology <br />1313 Sherman Street, Room 215 ,JAN 2 0 206 <br />Denver, Colorado 80203-2273 <br />of M.~n.ra~s antl Geo~oO'1 <br />Attention: Tom Kaldenbach, Reclamation Specialist o;~a~on <br />Re: 1st Quarter 2006 Surface Subsidence Inspections <br />1st Quarter 2006 Huntington Ditch Inspections <br />Dear Tom: <br />Inspections of areas over mined-out of the areas of the King Coal Mine revealed no new evidence of <br />subsidence cracks. <br />Subsidence areas were checked for changes. None of the pre-existing cracks appear to have grown, and <br />most are filling in naturally, which is usually the case. There is no indication that any areas around the <br />Crawford residence have moved. <br />An inspection and subsidence survey was performed on January 3, 2006 by Maness & Associates, <br />Registered Land Surveyors of the various subsidence monitoring points on the Crawford Ranch property. <br />This survey again revealed no movement. Please find enclosed results of that survey. <br />Inspections of other areas, including the Huntington and Crawford Ditches, revealed no adverse effects <br />from subsidence. <br />Please call if you have any questions. <br />Sincerel <br />_ / <br />Tom Bird <br />Manager, Coal Services <br />National King Coal, LLC <br />