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MINE ENGINEERING <br />MINE RECLAMATION <br />August 23, 2012 <br />J. E. STOVER & ASSOCIATES INC. <br />Jason Musick <br />Division of Reclamation, Mining and Safety <br />1313 Sherman St., Room 215 <br />Denver, CO 80203 <br />Dear Mr. Musick: <br />2352 NORTH 7 STREET, UNIT B <br />GRAND JUNCTION, COLORADO 81501 <br />PHONE: (970) 245 -4101, FAX 242 -7908 <br />Re: Lorencito Mine Permit C -1996 -084 <br />Permit Renewal No. 3 <br />Application for a Minor Revision, Adequacy Response No. 1 <br />RECEIVED <br />AUG 272012 <br />Division of & ton' <br />Mining <br />CIVIL ENGINEERING <br />CONST. MANAGEMENT <br />On behalf of New Elk Coal Company (NECC), the following responses have been prepared in <br />reply to the Division of Reclamation, Mining and Safety (DRMS)' comments and concerns <br />regarding the above - referenced permit renewal, stated in the letter dated July 5, 2012. Revised <br />permit pages and maps will be incorporated into the permit by this minor revision. <br />1. Based on a review of the ownership and control section of the currently approved permit <br />application package for the Lorencito Mine, comparing the section with the current <br />information in the Applicant violator System (AVS), there is one discrepancy that will <br />need to be addressed by New Elk Coal Company, LLC. Please address the discrepancy <br />listed below: <br />a) Please clarify the owner of New Elk Coal Company, LLC, AVS lists New Elk <br />Coal Company, LLC as 100% owner and the operator has Cline Mining <br />Corporation as 100% owner. <br />NECC - Cline Mining Corporation owns 100 % of New Elk Coal Company. Both entities <br />own 100% of the Lorencito Mine. Ownership and control information was updated on <br />pages 2.03 -3, 4 and 4a. <br />2. There are a significant number of landowners that are listed on Map 2.03.4 -1 that are not <br />listed on page 2.03 -6 or 2.03 -7 and landowners that are listed on pages 2.03 -6 and 2.06 -7 <br />that are not listed on Map 2.03.4 -1. Please update the current surface and mineral owners <br />of record and update the above mentioned pages and maps as appropriate. <br />NECC - Map 2.03.4 -1 was revised to show landowners within and contiguous to the <br />permit boundary. The landowners listed on pages 2.03 -6 and 7 were revised. Most of <br />the landowners were on the list for blasting notification because they were within one <br />