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<br />able to again formally apply for the additional federal coal reserves <br />needed to keep its current mine in operation. On August 14, 1979, Kerr <br />Coal submitted an application to the United States Department of the <br />Interior ("DOI") for the leasing of federal coal reserves which are <br />contiguous to, and the immediate extension of, the deposit presently being <br />mined. DOI acted favorably on Kerr Coal's emergency leasing application <br />and the coal reserves were offered for sale on May 13, 1979. Kerr Coal <br />was the successful bidder, receiving Federal Coal Lease C-22777 on July 1, <br />1980. <br />Kerr Coal initiated mining on the Federal lease with development of the <br />northern portion of Pit 1. Current mining plans contemplate recovery of <br />remaining reserves in Pit 1. Any subsequent mining in the Kerr north area <br />will be dependent upon market conditions and will proceed under revised <br />mining and reclamation plans which must first be approved by the CMLRD. <br />• <br />• <br />-7R- Revised - August, 1990 <br />