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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 />February 24, 2011 <br />Ron Thompson <br />New Elk Coal Company, LLC <br />122 West First Street <br />Trinidad, CO 81082 <br />Re: New Elk Coal Company, LLC <br />Notice of Intent to Explore <br />File No. X-2011-232-00 <br />Dear Mr. Thompson: <br />COLORADO <br />D IV IS I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />The Division of Reclamation, Mining, and Safety (DBMS) has reviewed the above <br />referenced Notice of Intent to Explore (NOI). This letter constitutes written <br />notification as required by Rule 2.02.2(3). <br />Notification of Completeness (Rule 2.02.2) <br />NOI X-2011-232-00 is complete. <br />Determination of the Proposed Activities as Coal Exploration (Rule 2.02.3(3)) <br />The activities described in the NOI qualify as "coal exploration" as defined by Rule <br />1.04(22). The coal exploration activities described will involve the removal of 250 <br />tons or less of coal. <br />Determination of Substantial Disturbance of the Land Surface (Rule 2.02.2(3)) <br />The coal exploration activities described will substantially disturbed the natural <br />land surface as defined by Rule 1.04(27). <br />Determination of the amount of performance bond (Rule 3.05.2(1)) <br />The Division reviewed the reclamation cost estimate as provided and has slightly <br />modified the estimate based on job supervision hours, hourly rate, and <br />percentage for profit, etc. Job superintendent hourly costs increased for 2011. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand )unction • Durango Active and Inactive Mines