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<br />III IIIIIIIIIIIIIIII <br />STATE OF COLORADO <br />DIVISIOIV OF MINERALS AND GEOLOGY <br />Department of Natural Resource <br />131 3 Sherman St., Room ?15 <br />Denver, Colorado BO?03 <br />Phone: (3031 866-3567 <br />FA%: (3031 81~-8106 <br />October 25, 2000 <br />Mr. Jerry Nettleton <br />Montgomery Watson Mining Group <br />P.O. Box 774018 <br />Steamboat Springs, CO 80477 <br />RE: Kerr Coal Company, Permit No. C-1980-006 <br />Preliminary Adequacy Review for Permit Renewal No. 4 <br />Dear Mr. Nettleton: <br />~~ <br />DIVISION O I i <br />MINERALS <br />& ~ <br />GEOLOGY <br />REC LAMATION~ <br />MINING•SAFETYI <br />Bil I O~~ens <br />Governor <br />Greg E. Walther <br />E.eculrve Director <br />michael B. Long <br />Di~islon Dnenor <br />The Division of Minerals and Geology has completed a review of the pennit <br />application package, inspection reports, and other pertinent information as discussed <br />below as part of the renewal for Permit No. C-1980-006. Listed below aze the questions <br />we have regazding our review. Please respond to these issues by December 31, 2000 so <br />that the DMG can review the responses and issue the renewal findings by the permit <br />expiration date, March 20, 2001. The responses should be submitted as a Technical <br />Revision. <br />Rules 2.02 and 4.21 -Coal Exploration <br />1. An inventory of exploration wells was conducted in the summer of 2000 by <br />Montgomery Watson for Kerr Coal Company. Thirty-seven open bedrock drill <br />holes were located in the north azea and 33 alluvial wells. Kerr is claiming <br />responsibility for 25 of the bedrock holes and 18 of the alluvial wells. The current <br />permit discusses coal exploration in Sections 776.11, 744.11 and 815 and 816.53. <br />Given the correspondence with the BLM during the past yeaz, it is appazent that <br />these discussions aze outdated. Discussions with BLM indicate that keeping the <br />wells open for coal methane development is questionable. Therefore, approval <br />from the BLM is necessary if these holes aze to remain open. Please update the <br />exploration discussions and plans specifying when reclamation will be completed, <br />how it will be completed and what wells will be transferred for use as water wells. <br />For those holes proposed to be transferred to water wells, landowner approval and <br />well permits from the State Engineers office will be necessary before they can be <br />approved. <br />Kerr Coal Company also references Open File Report 77-888 by the former <br />Conservation Division (now BLM). Please provide the DMG and the BLM with <br />a copy of this report. <br />