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Mr. David C. Shelton October 6, 1981 Page 3 Without the adjacent reserves, Bear Coal Company has no alternatives available to maintain existing levels of production and employment or to satisfy its existing contracts. Conversations with Mr. Don Crane of the Office of Surface Mining Mr. Donald Crane of the Office of Surface Mining indicated that only a minor modification to the existing federal mine plan would be necessary. Mr. Crane mailed a letter to the Colorado Mined Land Reclamation Division stating that only a minor modification would be necessary and Bear Coal Company had proceeded in its planning based on this early recommendation. Necessity to Receive Prompt Approval of Permit Revision Unlike larger coal companies with a sizeable reserve base, Bear Coal Company is rapidly depleting its limited reserve base through its logical mining sequences. With the dwindling amount of reserves, the Bear Coal Company faces the immediate prospect of diminishing rates of production and employment. On behalf of our employees and our customers, we hope that the Colorado Mined Land Reclamation Division will help us in receiving prompt approval for mining in this adjacent area. Steps to be Taken by Bear Coal Company to Assist in Approval of Permit Revision In order to facilitate and expedite the approval for facility relocation and mining in the adjacent area, Bear Coal Company has held meetings with the Office of Surface Mining and the Colorado Mined Land Reclamation Division for the purpose of discussing and reaching some understanding concerning the early approval for mining of the subject area. The preparation of information necessary for both government agencies to make approval of the mining will be undertaken upon receipt of specific guidance based upon the discussions held between the two groups. Bear Coal Company will organize all necessary, applicable information so that government agencies can progress expediently on the review for approval. It must be noted that both the Mined Land Reclamation Division and the Office of Surface Mining have significant familiarity with other mining operations along the north fork of the Gunnison River. Both agencies have evaluated and granted permits to several mines in the general location of the proposed Bear Coal Company operation. Because these previous operations have been scrutinized under the regulations of both the federal government and the Colorado government, it is hoped that this familiarity will allow the review of any information submitted to progress expediently.