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Peak Project Management, LLC <br />34115 County Road 20.8 Trinidad, CO 81082 <br />Telephone: (719) 846-4975 Fax: (719) 846-4930 Cell: (719) 859-0111 <br />ronthompson~wild blue.net <br />w e~® <br />May 8, 2008 ~~~`~ ti~~~ ~~ <br />Q~ OG~aR` 0~ <br />Mr. Kent Gorham ~Q~ ~`~ <br />c~ a~ <br />Division of Reclamation, Mining and Safety o.~`a~°,`~~~~ <br />1313 Sherman Street, Room 215 <br />Denver, Co 80203 <br />Subject: Permit Transfer, Lorencito Canyon Mine, Permit C-96-084 <br />Dear Mr. Gorham, <br />New Elk Coal Company, LLC (122 West First Street, Trinidad, CO 81082) requests <br />approval of the transfer of the CDRMS Permit C-96-084 from Lorencito Coal Company, <br />LLC (4422 Bryan Station Road, Lexington, KY 40516) to New Elk Coal Company. <br />NECC has acquired the right of ownership of the permit and ancillary agreements to <br />assume operation of the Lorencito Canyon Mine from Lorencito Coal Company. <br />This submittal includes a revised Section 2.03 of the permit, with supporting compliance <br />and right-of--entry documents to be placed in Exhibits 1 and 2. Surface and coal <br />ownership have been reviewed and Maps 1 and 2 of the existing permit correctly reflect <br />surface and coal ownership. A proposed public notice of the transfer is also included. The <br />public notice will run once in the Trinidad Chronicle News. The insurance policy has <br />been issued and copies of the iYSUrance certificate are enclosed. Copies of this certificate <br />should be placed in Exhibit 3. The Application form and replacement bond will be <br />submitted separately. A copy of this transfer package will be placed in the Las Animas <br />County Courthouse clerk and recorder's office for public review. <br />New Elk Coal Company, LLC intends to conduct surface mining operations at the <br />Lorencito Canyon Mine in full compliance with the terms and conditions of the approved <br />permit, and in accordance with the requirements of the Colorado Surface Coal Mining <br />Reclamation Act (34-33-101 et. seq., C.R.S. 1973 As Amended) and the Regulations of <br />the Colorado Mined Land Reclamation Board for Coal Mining. <br />Please call me if you have any questions or need additional information. <br />Sin rely, <br />/ ~... ~ , <br />~, <br />Ronald G. Thompson <br />Agent <br />