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~ ~q~l-olq <br />fNT Oc T ~ ~ Zt~O~ <br />~aPPS~ ~~' "~~ya United States Department of the Interior~`~~,/,-~ <br />-_ FD BUREAU OF LAND MANAGEMENT T 1 <br />~`_ °_ - ° Little Snake Field Office TAKE PRIDE° <br />4RC ~ tNAMERICA <br />455 Emerson Street <br />Craig, Colorado 81625-1129 <br />http://www.co.blm. gov/lsra/index.htm <br />In Reply Refer To: <br />9239(]00) <br />D-034365 <br />Jnly2s, 2ooa RECEii/ED <br />Mr. Bob Young <br />Colowyo Coal Company, L.P. AU~ 0 ~ 204 <br />5731 State Highway 13 <br />Meeker, Colorado 81641 Oivislen of Minerals end Geology <br />Re: Coal Trespass adjacent to West Pit, Culowyo Mine, SWY., sec. 4, T.3iJ., R.93W <br />Dear Mr. Young: <br />We have reviewed the information that you provided in a June 9, 2004 letter regarding the above-referenced trespass <br />adjacent to Federal coal Lease C-034365 neaz the west end of your West Pit. This was followed-up by an inspection <br />of the mined area on June 21, 2004. The. trespass involves the inadvertent mining of 2,366 tons of Federal coal that <br />was not under lease. The Bureau of Land Management (BLM) has determined that this was an "innocent trespass" <br />under 43 CFR 9239.5-3. <br />This statute specifies the measure of damages to be assessed where there is no state law governing such trespass, <br />which is the case in Colorado. For innocent trespass, payment must be made for the value of the coal in place before <br />severance. The BLM defines in-place value as the Boss coal price less all direct costs, including mining, crushing, <br />[axes, etc. Federal royalty is not included in duect costs, since royalty cannot be assessed on un-leased coal. For <br />Colowyo, the in-place value has been estimated at $6.97 per ton, or $16,491.02 in damages for the entire 2,366 tons. <br />An additional 159 tons of blasted coal was also removed from the un-leased area under the duecfion of the BLM in <br />order to prevent wasting of coal. Additional damages in the amount of $373.65 ($2.35 per ton) ate also due for the <br />159 tons of blasted coal removed under BLM direction, bringing the total damage assessment to $16,864.67. A <br />check to the Bureau of Land Management for this amount should be sent to: <br />Bureau of Land Management <br />Little Snake Field Office <br />455 Emerson Street <br />Craig, CO 81625 <br />The 2,525 tons of un-leased Federal coal removed should not be reported to MMS for royalty purposes, since there <br />is no lease to which this production can be attributed. <br />If you have any questions, please contact Jeny Strahan at (970) 826-5099. <br />Sincerely, <br />r <br />John .Husband - - <br />Field Manager <br />cc: Mr. Carl Johnston, Office of Surface Mining <br />Mr. Daniel Hernandez, Colorado Division of Minerals and Geology <br />