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Messrs. Andrus, Heine & Crane <br />September 14, 1979 <br />~ Page Three <br />in order to maintain employment and production levels and to <br />meet binding contracts. <br />The absence of a stable federal leasing program over the <br />past nine years led to the emergency leasing and precipi- <br />tated the crisis now faced by Energy Fuels. The reserves <br />contained in EFC's present operations are being rapidly <br />exhausted to meet the needs of the Company's public utility <br />customers, Public Service Company of Colorado and Illinois <br />Power Company. Indeed, the Department of the Interior, and <br />specifically Secretary Andrus, have recognized Energy Fuels' <br />predicament and made a commitment to insure that Energy <br />Fuels has sufficient reserves to continue as a reliable <br />supplier of coal. See March 3, 1978, letter to Secretary <br />Cecil D. Andrus, attached hereto. This commitment of the <br />_ Secretary, however, will be in vain without reasonably <br />• expedited review and approval of the accompanying permit <br />application. <br />Without regulatory approval of the accompanying application, <br />by January 1, 1980, Energy Fuels' coal production will <br />plummet and its operations will be severely curtailed. <br />Employees will be laid off, defaults under existing con- <br />tracts will worsen and, in the broader perspective, the <br />nation's critical energy shortage will be aggravated. <br />In an effort to bring the problem to the attention of OSM <br />and MLRB and to facilitate and expedite review of this <br />application, Energy Fuels has held a series of meetings with <br />OSM and MLRB representatives throughout the spring and ' <br />summer of 1979 for the purpose of discussing and reaching <br />some understanding on the permit format, design criteria <br />• for certain structures in the mining area and environmental <br />