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It is our understanding that, under your regulations, if these relationships did exist we <br />would be required to include Gracoal and Gracoal II among the list of "owners and controllers" <br />in the Colowyo permit application, unless we could prove that, despite the existence of the <br />relationship, Gracoal and Gracoal II do not have the authority to determine the manner of mining <br />at the Colowyo Mine. When we submitted MR-29, we listed all entities and persons whom we <br />concluded were in any of the relationships included in the definition of "owns or controls. " We <br />did not include Gracoal or Gracoal II in the list because we concluded they do not have any of <br />the regulatorily defined relationships with Colowyo or the Colowyo operation, including the two <br />relationships mentioned in your letter. <br />It is our understanding that because these relationships do not exist, there is no need to <br />go to the next step, which is to rebut the presumption of control created by the existence of the <br />relationship. Nevertheless, as noted in your letter, we did submit an affidavit as part of MR-29 <br />demonstrating that Gracoal and Gracoal II's only remaining relationship to the Colowyo <br />operation was as limited partners of Colowyo, and stating that "Gracoal, Inc. and Gracoal II, <br />Inc.... have no authority, directly or indirectly, to determine the manner of the surface coal <br />mining and reclamation operations conducted at the Colowyo Mine under [Colowyo's permit]." <br />That affidavit should be sufficient to address any remaining concerns you might have regarding <br />Gracoal and Gracoal II. <br />Please contact me with any questions. <br />Sincerely, <br />,~~/~/~~ <br />R. G. Atkinson <br />Manager, Healty, Safety, <br />Environmental Quality and Land <br />Attachments <br />xc: L. R. Cardey-Yates (w/att) <br />C. L. Richardson, Esquire (w/att) <br />G. J. Goldberg (w/att) <br />J. A. Kiger (w/att) <br />M. Malmquist, Esquire (w/att) <br />2 <br />