APPCOR13148

• Permit No: C1996084
• IBM Index Class Name: Application Correspondence
• Doc Date: 5/4/2001
• Doc Name: LORENCITO PERMIT EXTENSION REQUEST
• From: DMG
• To: GREYSTONE DEVELOPMENT CONSULTANTS INC
• Media Type: D
• Archive: No

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STATE OF COLORADO
DIVISION OF MINERALS AND GEOLOGY
Department of Natural Resources
1313 Sherman SL, Room 215
Denver, Colorado 80203
Phone: [phone]
F.4X: 1303) 832-8106
May 4, 2001
Jerry Koblitz
Greystone Development Consultants, Inc.
5231 South Quebec Street
Englewood, CO 80111
RE: Lorencito Permit Extension Request, Lorencito Canyon Mine, #C-96-084
Dear Mr. Koblitz:
DIVISION OF
MINERALS
GEOLOGY
RECLAMATION
MI NING•SAFETY
gill Owens
Governor
Greg E. Walther
Eneculive Duecrm
Michael P. Lang
Divivon Dneclor
The Division of Minerals and Geology has reviewed the information received by FAX on May 1,
2001 concerning the DMG decision to extend the Lorencito Canyon permit. As you are aware,
two important issues remain. One is the railroad agreement necessary to ship coal off the
permit area and the other is the demonstration of right of entry to mine coal on the Hill Ranch.
Included in the FAX was a letter stating that Trinidad Railway is the successor to Colorado and
Wyoming Railway as per a document dated November 17, 1992. However, as confirmed in
writing by Jerry Koblitz and verbally by Ron Thompson, A & K Railroad is the current owner of
the railroad. No mention of A 8 K Railroad is made in the FAX letter. This letter does not
provide information related to any current negotiations with A & K railroad concerning hauling of
coal by rail. The Division also understands that recently, a public notice in the Trinidad paper
was filed regarding abandonment of the railroad. This action seems contrary to using the rail
road for coal haulage.
Regarding the coal lease, the applicant had submitted a letter confirming coal lease
"discussions" between Lorencito and MGP Enterprises. However, information from section
2.03.4 of the permit application indicates "surface and coal ownership within the permit
boundary is owned by F. E. Hill..:' It is not clear how MGP Enterprises fits into the overall
picture. MGP Enterprises is not portrayed as a surface or coal owner. Based on this
information, the Division has no assurance that lease negotiations are ongoing between the
owner of the coal (Hill) and Lorencito Coal Company. In addition, regardless of coal ownership,
Rule 2.06.3(2) requires the consent of the surface owner for removal of coal by surface mining
methods. Please provide this consent.
Therefore, the Division believes the information provided to be insufficient at this time. If you
have questions or comments, please call me.
Berry
3ram Supervisor
CC: Robert A. Bassett, Dorsey and Whitney, LLP