_GENERAL DOCUMENTS - C1981040 (2)

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999 RECEIVE® Letter of Understanding DEC 2 61986 between the MINED LAND RECLAMATION DIVISION Colorado Mined Land Reclamation Division and La Plata Coal Corporation I. Introduction This letter of understanding is between the Mined Land Reclamation Division, Department of Natural Resources, State of Colorado (hereinafter the "Division") and the La Plata Coal Corporation (hereinafter "La Plata"). La Plata proposes to undertake the following activities at the Peacock Mine. This previously abandoned mine is located approximately five miles southwest of Hesperus on La Plata County Road 120. The legal description for this site is Section 29, T35N R11W NMPM. The Division does not construe the following activities to be surface i coal mining operations that require a coal permit pursuant to the Colorado Surface Coal Mining Reclamation Act (C.R.S. 34-33-101 et seeg. ). The Division contrues the following activities to be related to s e cleanup or related to previous enforcement actions taken but never abated. When reviewing the following activities, please refer to the enclosed map. II. Activities A. Cessation Order (CO) C-85-065 issued on July 22, 1985 was for "Failure i to properly treat acid- or toxic-forming materials". This CO related to the coal stockpile beneath the conveyor and above the tipple and to the coal stockpile adjacent to the old residence. Abatement for this enforcement action is to "Dispose of or properly manage all coal material in compliance with Rule 4.14.3". La Plata proposes to dispose of this material by removal from the site. Since this action is in accordance with the required abatement, this action is deemed appropriate by the Division. The material should be removed in accordance with state and local law governing disposal of such material . B. Cessation Order C-85-066 issued on July 22, 1985 was for "Failure to secure surface facilities as required". This CO related to the haul road leading to the upper bench, to the aerial conveyor, and to the tipple and loadout area. Abatement for this enforcement action is to ". . .take the appropriate steps to secure the site and prevent access by the general public".