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Mr. Fred Banta Mr. Floyd Johnson March 24, 1982 Page Two The following are the general items discussed during the meeting: • Necessity to receive prompt approval of permit revision ~ Steps remaining for Division to approve permit revision , • Steps remaining for OSM to approve permit revision • Division approval timetable • OSM approval timetable Necessity to Receive Prompt Approval of Permit Revision As mentioned on numerous previous occasions, our permit revision is not for a new mine in virgin country. The Bear Coal Company has been in operation in this area for over 47 years. In fact, the area encompassing the Bear No. 3 portals has been disturbed by almost 30 years of previous mining; underground coal mining was conducted at this location from a small operation known as the Clark-Edwards Mine until 1965 when their mining ceased. The Bear Coal Company only wants to relocate surface facilities to this area and maximize coal recovery from the place where the previous mining stopped. Since the summer of 1981, representatives of the Bear Coal Company have been discussing with OSM and the Division the need to receive approval for relocating mine facilities to the Bear No. 3 portals so that orderly operations could continue with no or minimal interruptions. Unlike larger coal companies which have a sizeable reserve base, the Bear Coal Company does not have vast amounts of coal reserves that can be produced while the company awaits approval of the revision. Current production from the Bear operation has been reduced to half of the production existing during the summer of 1981. All production will cease shortly if our requested revision is not approved. The present marketing conditions of the coal industry are extremely poor and not expected to turn around for several years. A significant portion of production from the Bear Coal Company is dedicated to use for heating by local residents and also to many long-term customers. Any interruption in coal production by. the Bear Coal Company could result in the loss of customers; in today's market, it would be extremely difficult, if not impossible, to replace those customers. The Bear Coal Company does not plan to increase production from the Bear No. 3 portals; likewise, no new equipment will be added. The present equipment and existing v+ork force will be used to continue mining operations. Without approval to move into these adjacent reserves, the Bear Coal Company has no alternatives available to maintain existing levels of employment. The failure to acquire timely approval of the revision will result in the cessation of mining operations with the accompanying loss of jobs. The Bear Coal Company