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iii iiiiiiiu~~u iii <br />999 <br />STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Deparlmem of Natura; Resources <br />I) I }Sherman SL. Room ? 15 <br />Denver. Colorado 80203 <br />P hone ~. 13031 866- 7 58? <br />FAY (30]183?-8106 <br />April 11, 2001 <br />Lorencito Coal Company <br />C/o Jerry Koblitz <br />Greystone <br />5231 South Quebec Street <br />Englewood, CO 80111 <br />Re: Suspended Permit C-96-084 <br />Deaz Mr. Koblitz: <br />Proposed Lorencito Canyon Mine <br /> <br />D I V I S I O N 6 .' <br />MINEFALi: <br />6c- -.. <br />GEOLOGY`` <br />R E C L A M A T I O N <br />HINING•$AFEiY <br />ern oven: <br />Governor <br />Greg E `~rychcr <br />Executive Director <br />M~ch~el B. Long <br />Dinvon Director <br />Thank you for your letter dated April 9, 2001. Pursuant to 2.01.5(2)(a), the proposed Lorencito <br />Canyon mine permit C-96-084 expired on November 7, 2000. On November 7, 2000, Greystone <br />(on behalf of A.P. Maxwell, LLC) requested that the Division of Minerals and Geology (DMG) <br />grant a six month extension of the C-96-084 permit term. DMG has the authority to grant such a <br />request under 2.01.5(2)(b). The DMG responded to the extension request by letter dated November <br />16, 2000, and the DMG letter requested specific information necessary to make a reasonable <br />determination in accordance with 2.01.5(2)(a) and (b). <br />On November 29, 2000, Greystone responded with specific information submittal commitments. <br />On January 24, 2001, the DMG reiterated that three issues remained unresolved, thus preventing an <br />extension of the permit. One of the issues was resolved with the submittal of a viable bond. Two of <br />the requirements remain unresolved. The unresolved issues aze: 1) submittal of adequate <br />documentation that some form of rail agreement exists to allow transport of coal from the proposed <br />Lorencito Canyon Coal Mine; and 2) submittal of adequate documentation that Lorencito Coal Co. <br />has the legal right to enter and mine the surface and minerals at the proposed Lorencito Canyon <br />Mine. <br />The April 9, 2001 Greystone letter indicates that these information submittals will be provided by <br />May I, 2001. The April 9, 2001 Greystone letter also indicates that "mine permit document <br />revisions for updated operations will be submitted by April 20, 2001 and we anticipate that <br />development activities will begin as soon as the revisions are approved (sometime in June 2001)." <br />This statement contradicts our understanding and agreement that a Permit Revision will be <br />provided. This statement also contradicts the statements in the Greystone letter of November 29, <br />2000, which read as follows: <br />"I. A Permit Revision to the mine plan will be necessazy due to the extensive methane <br />development on the property. A site reconnaissance was conducted on November 28, 2000 <br />1 ~ <br />