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<br />HOLLAND & HART ?~ ~ Jeanine Feriancek <br />~:.:, <br />~~ <br />Phone (303) 295-8185 <br /> Fax (303) 727-5854 <br /> jferiancek@hollandhart.com <br />May 12, 2008 <br />VIA MESSENGER <br />RECEIVED <br />MAY 12 2008 <br />Mr. Kent Gorham Division of Declamation, <br />Division of Reclamation, Mining and Safety Mining and Safety <br />1313 Sherman Street, Suite 215 <br />Denver, CO 80203 <br />Re: Permit Transfer; Lorencito Canyon Mine -Permit No. C-1996-084 <br />Dear Mr. Gorham: <br />Our firm represents New Elk Coal Company, LLC ("NECC"), and I am writing <br />on NECC's behalf. It is my understanding that you spoke with NECC's agent, Ron <br />Thompson, last week relating to the transfer to NECC of the permit for Lorencito <br />Canyon Mine, Permit No. C-1996-084, and that he is providing to you certain <br />information relating to the permit transfer. <br />I have enclosed on behalf of NECC the following: <br />1. Request for Transfer of Coal Permit and Succession of Operators, <br />executed by Lorencito Coal Company, LLC and NECC; <br />2. Coal Reclamation Bond (for Use with Check for Deposit in State <br />Treasury), executed by NECC; and <br />3. Our check in the amount of $967,121.00 for the bond. <br />Please note that, with respect to item 2, I have not included the "Consent of <br />Lienholder" page of the form, because there is no lienholder. <br />Also, I realize that preliminary approval has been given with respect to reduction <br />of the amount of the bond relating to Permit No. C-1996-1984. Because that bond <br />reduction has not been finalized, the enclosed check is in the amount of the bond as <br />presently approved. <br />Holland&Hart «P <br />Phone [303] 295-8000 Fax [303] 295-8261 www.hollandhart.com <br />555 17th Street Suite 3200 Denver, CO 80202 Mailing Address P.O. Box 8749 Denver, CO 80201-8749 <br />.Aspen Billings Boise Boulder Cheyenne Colorado Springs Denver Denver Tech Center Jackson Hole Salt Lake City Santa Fe Washington, D.C. c3 <br />