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fair. Fred Banta Page 2 February 9, 1983 <br />Coal Company, 14ine Number 3 and the Blue Ribbon Coal Company mines <br />located near Somerset, Colorado. It must be stressed that Terror <br />Creek Company does not operate any coal mines anywhere in the United <br />States. It merely functions as a market for small operating mines <br />which produce a type and quality of coal which can be marketed by <br />Terror Creek Company to its customers. Although the Bear Coal Company <br />is a minority investor in the Terror Creek Company, the Bear Coal <br />Company in no way is obligated to sell all of its production to the <br />Terror Creek Company. In fact, the Bear Coal Company supplies coal <br />under contract to other end users besides the Terror Creek Company. <br />The Terror Creek Company has proceeded with purchase of equipment and <br />construction activities during the late fall and winter months of 1982 <br />and 1983 based upon correspondence from the Division to ACZ INC. which <br />indicated that a permit was not required for construction and <br />operation of this type of facility. Terror Creek Company had planned <br />to maintain open lines of communication with the Division to provide <br />any information, plans or other data so as to keep the Division <br />informed of its activities so that questions from other groups which <br />may arise could be answered in a knowledgeable manner by the Division <br />personnel. The information was intended to be provided earlier during <br />this process if equipment specification and precise layout of the <br />planned facility could have been finalized earlier. Due to the <br />equipment procurement problems, this information had not been <br />available until today. <br />Eldon Strid reviewed the current sequence and techniques of <br />construction which had been completed at the Terror Creek operation <br />particularly related to environmental resources as of February 1, <br />1983. The construction of the Terror Creek Facility site has been <br />carried out in an environmentally responsible way to ensure that all <br />performance standards of current rules and regulations for coal mining <br />in the State of Colorado would be followed in case that permit <br />applications were required by the Division at some later date. <br />Therefore, topsoil material has been salvaged and placed in a <br />stockpile for reclamation following closing of the facility. Drainage <br />and sediment control has also been completed by construction of a <br />collection ditch on the facilities pad area for routing water from the <br />disturbed area into a sediment control structure. In addition, the <br />facilities pad has been built in a prudent and stable manner by <br />placement of fill material in thin, compacted, horizontal lifts. <br />Since the loadout facility will be used to Toad railroad cars, the <br />site is adjacent to the Denver & Rio Grande Western Railroad <br />right-of-way. Construction of the railroad base, cut and fill areas <br />has been completed under the direction of Denver & Rio Grande Western <br />Railroad personnel. As construction of the site is not yet complete, <br />revegetation of cut and fill slopes and installation of diversion <br />ditches around the affected area have not yet occurred. <br />The site which Terror Creek has utilized for the loadout facility is <br />quite small and contained on property owned by the Terror Creek <br />Company. Prior to ownership of this property by Terror Creek Company, <br />R G ~ tNC. n <br />