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01-29-04 D2:24PM FROM-DMG GRAND JUNCTION F1ELD OFFICE 970 241 1515 T-939 <br />J. E. STOVER & ASSOCIATES <br />2768 COMPASS DRIVE, SUITE 101 <br />GRAND JUNCTION, COLORADO 81508 <br />PHONE: (970) 245-4101, FAX 242-7908 <br />MINE ENGINEERING <br />MINE gECLAMATION <br />January 27, 2004 <br />Dan Mathews <br />Division of Minerals and Geology <br />101 South 3b Street Suite 301 <br />Grand Junction, CO 81501 <br />P~A`~O <br />s~ iv <br />002/002 F-225 <br />C-~q~ -cou- se <br />G ~~ $I-t~zo -- ~„3 <br />CNIL ENGINEERING <br />CON5f. MANAGEMENT <br /> <br />~-Al~ p ~ 20D4 <br />'r° ~ <br />'' <br />Re: McClave and Munger Canyon Mines <br />_ Succession of Qperators SO.3.., ,. . __ ,.. _ _ _ _ _ _ __. __ <br />Right of Entry <br />Permit Nos. C-80-004 & C-81-020 <br />Dear Mr. Mathews: <br />During July and early August 2003, documents were filed with the Bureau of Land Management <br />to transfer Federal Coal Leases COG0125439, COC-0125516 and COC-0125516 from Lodestar <br />Energy, Inc. to Central Appalachia Mining, LLC, (CAM). Each time calls were made to expedite <br />the lease transfer, the Minerals Management Service, (MMS), was cited as the agency delaying <br />the transfer. The DMG's letter dated January 9, 2004, requested and explanation of the steps <br />CAM has taken to expedite the Federal coal lease transfer. <br />Part of the problem is that Lodestar is delinquent in entering its production data into MMS's intemet <br />based reporting system. Lodestar is just now addressing this problem. Lodestar's trustee (Bill <br />Bishop) is responsible for entering the delinquent data. It is my understanding that Lodestar will <br />begin entering the delinquent data this week. Once the data is entered, MMS should be able to <br />provide the BLM the required information so the lease transfers can be approved. However, data <br />entry could take two to three weeks because only one month of data can be entered per day. <br />Based on this schedule, the Federal coal lease transfers might be approved in about one month. <br />CAM has finalized negotiations with the Union Pacific Railroad, (UPRR), on a new surface lease <br />at the Loma Loadout. The fee for the first year of the surface lease has been paid. The surface <br />lease is in the mail to the mine site for signature. The lease will then be sent to the UPRR for its <br />signature which will finalize the new surface lease. This process should be complete within two <br />weeks. <br />Please call 'rf you have any questions. <br />Sincerely, <br />E. Stover, P.E. <br />~~~~ <br />Consulting Engineer <br />