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:~ STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Department of Natural Resources 7 313 Sherman St, Room 215 C O L D RA D O Denver, Colorado 80203 ~ D I v 1 5 1 o N O F Phone: (303) 8663567 M I N s RA L$ FAX: (303) 832-8106 G E O L O G Y RECLA MATION•NINING SAFETY•SCIENCE August 20, 2004 Bill Owens Governor Mr. Daniel Bear Russell George Executive Director 17036 Opal Hill Drive Ronald W. Cattany Parker, CO 80134 Division Director Natural Resource Trustee RE: Bear No. 3 Mine, Permit No. C-1981-033, Beaz Coal Company SL-3, Phase One Bond Release Inspection Deaz Mr. Beaz: Attached is the Colorado Division of Minerals and Geology (Division) inspection report for the July 20, 2004 Phase One bond release field inspection of the Beaz No. 3 Mine. The Division is continuing its review of all pertinent information before a decision is proposed. In order to aid the Division's review, additional information is being requested as follows: The Division is in possession of a letter, dated May 5, 1987, from the original surface landowner, Anchor Coal Company, in which it is stated that the frame building and fence aze to be left in place as a residence. According to Oxbow Mining LLC, the current surface landowner of the mine office, there is a more recent letter, from Oxbow Mining LLC, reaffimung the same request. The Division is asking Beaz Coal Company and Oxbow Mining LLC, if either is in possession of such a letter, to please forwazd a copy to the Division. 2. If Oxbow Mining LLC is to retain the mine office as a residence, then BCC must demonstrate to the Division that Oxbow Mining LLC has right-of--entry to get to the residence. This would involve right-of-entries for the use of the paved haul road leading from State Highway 133 down to the mine site, the use of the bridge and, fmally, the use of property owned by Arch Coal to get to the Oxbow property and residence. Beaz Coal Company also mentioned during the field inspection that they own the property at the top of the hill where the paved haul road meets State Highway 133. Representatives from Beaz Coal Company, Oxbow Mining LLC and Arch Coal Company stated that this issue ofright-of--entry will be worked on among the three companies. The Division is requesting that, once this issue is settled, Beaz Coal Company provide the Division with written verification of the right-of--entry information in support of one of the two post mining land uses of limited residential land use. The Division is requesting that Bear Coal Company provide written verification that Gunnison County approves of the retention of the mine office with sewage system as a residence and the retention of the paved haul road and bridge as support for the residence. This documentation must show that the building is in a condition suitable for residential use and habitation. Office of Mined Land Reclamation Office of Active and Inactive Mines Colorado Geological Survey