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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />June 17, 2008 <br />Bruce Addington <br />Lorencito Coal Company LLC <br />4422 Bryan Station Road <br />Lexington, KY 40516 <br />Re: Lorencito Canyon Mine (Permit No. C-1996-084) <br />Bond Release Application No. 2 (SL-2) <br />Dear Mr. Addington: <br />COLORADO <br />D IV IS I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />In accordance with Rule 3.03.2(5)(b) of the Rules and Regulations of the Colorado Mined Land <br />Reclamation Board for Coal Mining (Rules), you are hereby notified that the Division's decision to <br />Approve Bond Release Application No. 2 for the Lorencito Canyon Mine became final on June 16, <br />2008. No requests for an adjudicatory hearing on our proposed decision were received. <br />Bond Release No. 2 reduces your reclamation liability by $50,952.00. The current liability is now <br />$916,169.00. The Division suggests you provide a copy of this letter dated June 17, 2008 to your <br />bonding company for written evidence for approval to reduce your bond. If you choose to reduce or <br />replace your existing bond, it must equal or exceed $916,169.00. <br />If you have questions or need additional information, please contact me. <br />Sincerely, <br />j444.- <br />Kent A. Gorham <br />Environmental Protection Specialist <br />KAG/Jrc <br />cc: Johanna R. Cramer, CDMG <br />C-SL-18_C1996094_KAG_06172008125343.doc <br />Office of Office of <br />Mined Land Reclamation Denver - Grand Junction - Durango Active and Inactive Mines