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APPLICATION FOR LEASE SUSPENSION <br />Lessee: CAM -Colorado LLC <br />2352 North 7th Street, Unit B <br />Grand Junction, CO 81501 <br />Officer: Chad Hunt <br />Vice President <br />CAM -Colorado LLC <br />424 Lewis Hargett Circle, Suite 250 <br />Lexington, KY 40503 <br />Suspension Requested Suspension of continued operation and <br />production in the interest of conservation of the <br />resources under section 39 of the Mineral <br />Leasing Act of 1920, as amended and <br />implementing regulations at 43 CFR 3483.3 <br />Federal Coal Leases: LMU COC 57198 <br />COC -0125439 <br />COC -0125515 <br />COC -0125516 <br />COC -66514 <br />Fee Coal <br />CAM -Colorado LLC (CAM) leases the federal coal and owns a portion of the fee <br />coal that makes up logical mining unit LMU 57198. CAM has a contract mining <br />agreement with McClane Canyon Mining LLC (MCM). Reserves within the LMU <br />were mined by MCM from its McClane Canyon mine. MCM previously shipped <br />coal via trucks to the Cameo Power Plant. The Cameo Power Plant was MCM's <br />only customer. Xcel Energy shut down the Cameo Power Plant around the end <br />of 2010. MCM idled the McClane Canyon mine December 9, 2010. Truck <br />shipments to the Cameo Power Plant ceased after the clean coal stockpile at the <br />mine was depleted. <br />There are no coal customers in the surrounding area that could be serviced by <br />truck haulage. CAM has taken aggressive actions to get the McClane Canyon <br />Mine back into operation. It purchased land for a unit train loadout. CAM has <br />obtained nearly all permits necessary to construct a unit train loadout which will <br />be located near the town of Fruita, CO. The unit train loadout will open markets to the <br />east and west. CAM will begin construction of the unit train loadout after it secures a coal <br />sales contract. <br />MCM submitted a permit application to the Division of Reclamation, Mining and <br />Safety and BLM for a coal cleaning plant and associated coal mine waste pile to <br />be constructed at the McClane Canyon Mine. BLM objected to the plan so MCM <br />eventually withdrew its permit application. MCM and BLM have a tentative new <br />