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MOUNTAIN COAL <br />COMPANYL.L.c <br />A Subsidiary of Arch Western Bituminous Group, LLC <br />January 31, 2011 <br />Mr. Daniel Bear <br />Bear Coal Company <br />1326 War Emblem Lane <br />Rock Springs, WY 82901 -7713 <br />RE: Bear No. 3 Mine Partial Phase One Bond Release Application <br />Dear Mr. Bear. <br />Mountain Coal Company, LLC (MCC) provides the following information in regard to Bear Coal <br />Company's application for partial phase one bond release. <br />Given DMEA's potential future use of power pole number 50- HSB98L2 located on MCC <br />property at the Bear No.3 Mine site, as well as DMEA's commitment to remove the pole and <br />powerline number D2ACSR when it is no longer useful for their purposes, it is acceptable for <br />the pole and powerline to remain in place on MCC property at this time. <br />Also, in regard to the bridge, MCC is the owner of the bridge needed to access the property. <br />Oxbow has a deeded right from MCC to use the bridge subject to a pro-rata assessment for <br />repairs and maintenance, and a deeded right -of -way for use of a 60 -foot wide road through the <br />private parcels located in the flat area. Oxbow has leased to Bear Coal Company the rights to <br />use the bridge and right -of -way to perform the necessary reclamation and maintenance <br />activities on the mine site. At this time, MCC has no issues with the retention of the bridge for <br />these purposes, but asks that a fence and locked gate be installed on the west (town) side of <br />the bridge to prevent unauthorized access onto the bridge and on the property. <br />_ Please contact me should you have questions regarding this information. <br />Sincerely, <br />Akeepigia <br />Kathleen G. Welt <br />Environmental Engineer III <br />cc: Doug Downing — Ark Land <br />Joseph Dudash — CDRMS <br />Jim Kiger — Oxbow <br />Doug Nolte — MCC <br />Jim Stover - Stover & Assoc. <br />West Elk Mine <br />P.O. Box 591 <br />5174 Highway 133 <br />Somerset, CO 81434 <br />(970) 929 -2200 <br />Fax (970) 9295050 <br />