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National King Coal, LLC Telephone: Fax: Email: <br />(970)3854528 (970)385-4638 nkcQNKCmine.com <br />P.O. Box 2905 4424 County Road 120 1"V"1O~ <br />Durango, Colorado 81302 Hesperus, Colorado 81326 tr n ~O ~ <br />Apri19, 2003 <br />State of Colorado <br />Division of Minerals and Geology <br />11313 Sherman Street <br />Room 215 <br />Denver, Colorado 80203-2273 <br />Attention: Harry Ranney, Reclamation Specialist <br />Re: First Quarter 2003 Surface Subsidence Inspection <br />First Quarter 2003 Huntington Ditch Inspection <br />Dear Harry: <br />RECEIVED <br />APR 14 2003 <br />Division of fNina~ais and Gealopy <br />Unusually heavy snowfall prevented any inspection during the first quarter of 2003. <br />Mining has been completed beneath the DunnNte Mountain Ute Tribe Lease. OSM has <br />been checking, measuring, photographing and mapping these cracks on a quarterly basis. <br />These cracks look much like the cracks which are not under OSM jurisdiction. The most <br />recent OSM inspection revealed that the cracks repaired by NKC are still in good shape <br />and the other cracks are healing nicely. OSM is now willing to release the bond. <br />The other areas where pillars have been extracted are Sections No. 1 Right through No. 6 <br />Right, 4 West, 7 South, 6 South and 5 South/1 Left. A crack which developed over the <br />southeast end of Sections 1 Right and 2 Right has been filled using a backhoe and fill dirt. <br />The 7 South and 6 South area exhibits normal subsidence tension cracks extending north <br />from a point about 300 feet south of the Huntington Ditch. This area of the ditch has been <br />replaced with a buried pipeline. Some cracks appear to have crossed the pipeline with no <br />apparent consequences. The landowner is monitoring the situation closely. <br />Y <br />Please call if you have any questions. <br />Sincerely. <br />Tom Bird <br />Manager, Coal Services <br />National King Coal, LLC <br />