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/'°® Kennecott <br />~ ~ Energy <br />RECEI~fE® <br />December 10, 2004 <br />Ms. Karen Zurek <br />Bureau of Land Management <br />Colorado State Office <br />2850 Youngfield St. <br />Lakewood, Colorado 80215 <br />DEC 1 ~ 2004 <br />Division of Minerals and Geology <br />Colowyo Coal Mine <br />iSeeier Coic~aCO Ct Ode <br />TelSphonc :5 %c~F;ad-Y.~d2 <br />~~~. °a~m c«i-i ;~.N <br />c. Crellln Soot[ <br />Sr. Environm_ntal engineer <br />RE: Request for a Lease Modification for Federal Coa! Lease D-034365 for Colowyo Coal Company <br />Dear Ms. Zurek: <br />In follow-up to our last conversation Colowyo Coal Company has revised the lease boundary in order to provide a more suitable <br />lease description. This revision is for the modification to Federal Coal Lease D-034365 under the terms and conditions of 43 CFR, <br />Chapter II, Subpart 3432 -Lease Modification. Colowyo Coal Company presently holds this lease and would like to expand the <br />lease to include an adjacent azea not presently under lease. <br />Granting this lease modification will allow up to 267,530 additional tons to be recovered with the existing operation. The proposed <br />lease modification adds 16.92 Acres in the existing Federal Coal Lease D-034365. Colowyo Coal Company owns the surface and <br />Bureau of Land Management administers the coal reserves in the proposed lease modification azea. <br />The advantage of leasing these additional acres is to ensure maximum recovery of available tonnage with the existing operations in <br />that azea. It is very unlikely that another company would be able to economically mine the same coal. Due to our close proximity <br />and access already established, Colowyo has the proper equipment and personnel to recover the tonnage in an efficient and effective <br />manner through truck shovel and highwall mining operations. <br />The two coal seams C and D aze tazgeted for coal extraction in an adjacent ridge to the West Pit area. (See Drawing No. 1) The <br />proposed lease modification also falls within the existing permit boundary as established with the State of Colorado <br />Please fmd enclosed a map illustrating the azea of interest and the additional acreage requested. Across section of the coal seams <br />and the respective volumes has been provided, along with a description of how we calculated our tonnages and Colowyo's proposed <br />methods of mining. In addition we have submitted a new legal description to include the new lease area. <br />Please discard the previously submitted material dated August 18, 2004. If you have any questions regazding this information please <br />call me at your eazliest convenience. <br />Sinc~relC/%~~ 'y~5~~~/~~/- - <br />C~. C/rellinScott~~G/J/~, ~~~Jf <br />Sr. Environmental Engineer <br />Cc: File <br />BLM-Craig w/attachments <br />Bob Young w/o attachments <br />Tonia Folks w/attachments <br />Dick Turpin w/attachments <br />CDMG-B. Walker w/attachments <br />Antelope Mine •Colowyo iodine • Coidero Rolo Pliny • Jacobs Ranch Mine - Sprang C~erk Nhne <br />H member ~I tht- Pio 4into Gr~~np <br />