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s: <br />ri" <br />MINNESOTA CANAL AND RESERVOIR COMPANY <br />41103 LAMBORN MESA ROAD <br />PAONIA, COLORADO 81428 <br />March 10, 2008 <br />Mr. Dan Hernandez ~~~~~V~D <br />Colorado Division of Reclamation Mining and Safety MAR 1.2 2008 <br />Office of Mined Land Reclamation <br />1313 Sherman Street, Room 215 Uivis~.:~~::', ~eciamation, <br />Denver, Colorado Mining and Safety <br />Re: Monument Dam <br />Dear Mr. Hernandez: <br />A few years ago MCRC raised concerns with West Elk Mine's proposed longwall coal <br />mining of the E Seam in the vicinity of Monument Dam. We appreciate your office <br />addressing our concerns to ensure protection of the dam by requiring certain performance <br />by and cooperation with Mountain Coal Company to resolve these concerns. <br />Over the past several months significant structural improvements to Monument Dam <br />have been completed according to a comprehensive design application that was approved <br />by the State Engineer's Office, Division of Water Resources. In cooperation with <br />Mountain Coal Company, Barr Engineering, ConSy, and several other parties, Monument <br />Dam has been fortified to our satisfaction. All aspects of the structural modifications <br />have been completed although there area few cosmetic tasks that will be completed in the <br />upcoming months. <br />Enclosed is a temporary approval, granted by the SEO, to operate the reservoir at full use <br />for the upcoming irrigation season. This temporary approval is necessary since the <br />approval to start construction came so late last year. The late start prevented the <br />modifications from being completed prior to snow fall and now the SEO cannot conduct <br />the formal and required "final inspection" necessary for final acceptance; although the <br />SEO is satisfied that the proposed structural improvements have been completed. <br />This temporary approval allows use of the dam this year. This is a very important <br />approval for our share holders. Arrangements (via this temporary approval to fill and use <br />the dam) have been made to postpone the final inspection until later this year when the <br />reservoir empties. The point being is that final inspection can only be completed with the <br />reservoir empty. hiterim inspections have been conducted to assure the dam will function <br />as designed. <br />MCRC is fully satisfied that Mountain Coal has resolved our concerns with Monument <br />Dam and that longwall mining can proceed without reservation. We understand the <br />