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~' Page three Letter to James D. Rent, Esq. RE: Permit No. 79-177 January 26, 1981 of page 2 of the Memorandum to Joan M. Davenport through Walter E. Hein from Donald A. Crane recommending approval with stipu- lations of EFC's major modification. Copies of the relevant portions of all these documents have been included for your consideration. This lone exception regarding contemporaneous recla- mation and the need for a variance under 30 C.F.R. 785.18 to allow for combined surface and underground mining operations was the focus of Stipulation 13 to OSM's approval. That Stipu- lation provides as follows: "By December 31, 1980, the applicant shall submit an approvable plan for proposed under- ground operations for that area located adja- cent to the shop facility and which are leased. If an approvable plan is not submitted by Decem- ber 31, 1981, backfilling of the highwall shall commence by January 1, 1981, and shall be com- pleted by January 31, 1981, in accordance with map 48." On December 23, 1980, EFC submitted a detailed plan ~3erground mining which included all of the information ma:~dated by 30 C.F.R. §765.18. Copies of this plan were pro- vided to your offir_e, OSM and the Area Mining Supervisor for the U. S. Geological Survey. EFC maintains that submission of this detailed mining plan fully satisfies the requirement of Stipulation 13. Further, in view of the fact that Stipulation 13 was directed at resolving the sole exception to OSM's find- ing of permanent program compliance, submission of the mining plan serves to remove that exception and render EFC's compli- ance with the Federal Permanent Program Regulations complete from the federal perspective. We hope that the documentation accompanying this let- ter should answer any outstanding questions the Division may have regarding the applicability of S.R. 2.01.3(5) to