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III IIIIIIIIIIIII III <br />Interoffice <br />MEMORANDUM <br />to: David Berry <br />Dan Hernandez ~'1 <br />from: Kent Gorh <br />subject: L,orencito Canyon, Perntit Extension <br />date: May 2, 2001 <br />I have reviewed the information received by FAX on May 1, 2001 concerning the DMG decision <br />to extend the Lorencito Canyon permit. As you are aware, the remaining issues are the railroad <br />agreement necessary to ship coal off the permit area and the demonstration of right of entry to <br />mine coal. <br />Regarding the railroad, the applicant offered a letter stating that Trinidad Railway is the <br />successor to Colorado and Wyoming Railway as per a document dated November 17, 1992. <br />However, as confirmed in writing by Jerry Koblitz and verbally with Ron Thompson, A & K <br />Railroad is the current owner of the railroad. No mention of A & K Railroad is made in the FAX <br />letter. In my opinion, this letter does nothing to satisfy our request. Also, recently a public <br />notice in the Trinidad paper was filed regarding abandonment of the railroad. The current status <br />of that action is unknown. <br />Regarding the coal lease, the applicant had submitted a letter confirming coal lease "discussions" <br />between Lorencito and MGP Enterprises. 1 do not claim to understand how MGP Enterprises fits <br />into the overall picture. However, information from section 2.03.4 of the permit application <br />indicates "surface and coal ownership within the permit boundary is owned by F. E. Hill..." <br />MGP Enterprises is not portrayed as a surface or coal owner. Therefore, the Division has no <br />information that lease negotiations are ongoing between the owner of the coal (Hill) and <br />Lorencito Coal Company. <br />Therefore, I believe the information provided to be I00%n insufficient at this time. <br />