2014-03-31_REVISION - C1996084 (2)

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3/31/2014 State.co.us Executive Branch Mail -Re: New Elk- Lorencito Canyon Mine Permit No. C- 1996-084 Simmons - DNR, Leigh <leigh.simmons @state.co.us> Mon, Mar 31, 2014 at 9:28 AM To: mgpminerals @comcast.net Cc: Sandy Brown - DNR <sandy.brown @state.co.us >, Alysha Hernandez - DNR <alysha.hernandez @state.co.us> Mr Meggison, In the interest of prompt resolution I propose that we continue our communication by email. I will ensure, nevertheless, that the messages are archived and become part of the record of documentation for the Lorencito Canyon mine. On February 24, 2006, the Division (at the time, the Division of Minerals and Geology) received a request from New Elk Coal Company (NECC) to transfer the Lorencito Canyon mine permit (C- 1996 -084) from Lorencito Coal Company (LCC) to NECC. The transfer request stated that NECC intended to conduct surface coal mining operations. On December 3, 2007, the Division received a letter from yourself, on behalf of MGP Mineral Enterprises (MGP), referencing a telephone conversation you had had with Kent Gorham. Your letter and the attached documents explained clearly that neither LCC nor NECC had the right to mine coal owned by MGP within the Lorencito Canyon mine permit boundary. (According to my information, MGP owns 53.5% of the coal within the permit boundary) On January 28, 2008, the Division received a withdrawal of the transfer request from NECC. On May 9, 2008, the Division received a second transfer request from NECC. On July 9, 2008, the proposed decision to approve the transfer became final. That action simply transferred ownership of the permit from LCC to NECC - it did not make any changes to the substance of the permit, or to what the permittee was entitled to do. (Much earlier, in 2003, at the end of the first permit term, the decision to approve the permit renewal was made with the stipulation that the permit was for reclamation only) At the end of the second permit term in 2008, the permit was renewed again, with the same stipulation. The decision I proposed on March 21, 2014, was to approve the renewal of the permit for a third time, but still with the stipulation that it is for reclamation only. Let me stress clearly, there is no question of coal mining operations occurring within the Lorencito Canyon permit boundary at this time. If any entity were to propose mining coal on the site again, approval would be subject to a rigorous permitting process; without the prior agreement of the mineral owners that process would grind to a halt immediately. Activities on the site now are limited to maintenance and repair of existing structures, erosion control and repair, and possibly re- seeding. In order for the Division to terminate the permit and return the liability bond to NECC, NECC must demonstrate that the site meets or exceeds the success criteria laid out in the original reclamation plan. At this stage, the remaining standards that must be achieved mainly have to do with the cover, production and diversity of vegetation. hope that I have addressed your concerns and that you feel comfortable in withdrawing your objection to my proposed decision. Please feel free to contact me by phone or email if you have any further questions or comments. Sincerely, https: / /mai l.g oog le.conVmai 1 /u /0 / ?ui =2 &i k=e29129fcb5 &view= pt &search =i nbox&th= 14518clfd9e27bl c &si ml= 14518cl fd9e27bl c 1/2