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The Pittsburg & Midway Coal Mining Co. A Chevron Com(any 6400 South Fiddlers Green Circle, Engle~wod CO1i0111-0991 Nail AtlAess: P 0 Box 6518, Englewood, CO 00155b576 • FA1((303) 930-4204 • Phone (303) 930.30 June 19,1992 Ms. Susan L. Morrison Mined Land Reclamation Division Colorado Department of Natural Resources 1313 Sherman, Rm. 215 Denver, CO 80203 RE: Edna Mine Permit C-80-001 Minor Revision 1992-1 Exploratory Drilling Program Reclamation Liability Dear Ms. Morrison: III IIIIIIIIIIIIIIII h ~~Lc~,ryp..,,,>> JIV G < IBS, ~~ined land ~n Enclosed are three copies of The Pittsburg & Midway Coal Mining Co.'s ("P&M's") Minor Revision 1992-1 to the Edna Mine Permit C-80-001. Minor Revision 1992-1 will expand Section 3.1.5 of the permit to include the following: (1) Text detailing the Exploratory Drilling Program's Notice of Intent and clarifying that the associated reclamation costs are covered under Edna s general reclamation bond, U80 61 57-27 ("the Bond"); and (2) Appendix 3.1-B containing a copy of the Mine's bond to document the aforementioned clarification. Minor Revision 1992-1 will result in an increase in the Mine's overall reclamation liability and therefore "yes" has been marked on the application form bond increase box. P&M has calculated this increase in liability to be approximately $10,000, reflecting the exploratory drilling reclamation costa per session (see Attached). Despite this increase in liability, Minor Revision 1992-1 does not include the addition of a rider to the Bond. Instead of a rider, P&M will dedicate $10,000 of the Bond's nearly $700,000 in excess liability funds to provide for the reclamation liability of said exp]oratory drilling activities. The excess in liability funds was created when the Mined Land Reclamation Division ("MLRD") approved the Mine's 1992-1996 Permit Term liability estimation of $6,400,000, nearly $700,000 less than the $7,100,000 at which the Bond is presently set. As stated in the revised permit text, if in the future these funds fall short of that necessary, P&M will secure a rider to the bond. As this liability is not considered an addition to the five-year permit term liability, the current permit term reclamation liability estimate of $6,400,000 will not be affected by this revision. If you have questions or comments regarding this submittal, please contact me at 930-4248. P&M looks forward to the MLRD's approval. Respectfully, usan M. Hoffmeister Enclosure cc: B. D. Gontarek (Englewood) w/ enclosure D. L. Beverlin (Edna) w/ enclosure