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III IIIIIIIIIIIII III • • <br />999 <br />Kobutz, Jerry 1^,.I/ <br />From: Moore, Mike [MMoore@aeiresources.com] ~IV19~D11 W ~K-~dy~ <br />Sent: Thursday, December 07, 2000 2:01 PM ~ /~~ pp ~ L <br />To: 'Jerry Koblitz' $l~4~ ~~O~i~T <br />Cc: Addington, Bruce <br />Subject: Lorencito Canyon Project ~~ <br />Jerry <br />Bruce Addington and I met yesterday to discuss the Lorencito Canyon <br />project. We plan to move a core drill on-site in early January in order to <br />obtain additional thickness and quality data on the surface mineable coal <br />seams. As you are aware, we are on a fast track to begin coal production as <br />soon as possible in 2001. Consequently, we feel that it would be beneficial <br />for you and me to meet with the appropriate personnel at the Colorado <br />Division of Minerals and Geology as soon as possible. At that meeting, I <br />would like to discuss the following: <br />1. A core drill rig will begin exploration in early January. What, if <br />any, actions must occur prior to that? <br />2. Surface mining activities will commence in the area between Cow <br />Canyon and Jeff Canyon, for which a "mine plan" has already been submitted <br />(Area 4). What must be done prior to that? <br />* Clarify any property control issues <br />* Satisfy any bonding issues <br />* Ownership and control issues <br />* Geotechnical evaluation of hollow fill and sediment pond locations <br />* Any public notifications <br />* Any other permits, licenses, etc. from any other Federal, State, or <br />Local authority <br />* Other <br />3. Concurrent with the "area mining" projected for Area 4, contour <br />mining of the Primero seam will occur in Lorencito Canyon. (that will allow <br />us to have multiple work areas and to facilitate blending). What must be <br />done prior to that? <br />* Modify "mine plan" <br />* Geotechnical evaluation of hollow fill and sediment pond locations <br />* Any public notifications <br />* Any other permits, licenses, etc. from any other Federal, State, or <br />Local authority <br />* Additional bonding <br />* Other <br />4. The surface mining equipment which will commence mining in Area 4 <br />(or contouring the Primero) will be used to prepare the face up for portal <br />P3, the underground mine in the Primero seam. Development of the underground <br />mining will occur concurrently with the surface mining activities. What <br />must be done prior to that? <br />* Modify "mine plan" <br />* Geotechnical evaluation of hollow fill and sediment pond locations <br />* Any public notifications <br />* Any other permits, licenses, etc. from any other Federal, State, or <br />Local authority <br />* Additional bonding <br />' Other <br />5.' A proposed rail spur would be located in Lorencito Canyon. What <br />must be done if that is to be constructed ? <br />* Modify "mine plan" <br />* Geotechnical evaluation <br />* Any public notifications <br />* Any other permits, licenses, etc. from any other Federal, State, or <br />Local authority <br />