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iiiiiiiiiiiiiiuhi <br />999 <br />Snell & Wilmer <br />L.L.P <br />LAW OFFlCES <br />I l I Fast Broadway, Suite 900 <br />Salt Lake Ciry, Utah 84111 <br />(801)237-1900 <br />Fax: (801)23]-1950 <br />Denise A. Dragoo (801) 237.1998 May 27, 1999 <br />Internet: ddtagoo®swlaw.com <br />Via Federal Express <br />Mr. Dan Mathews <br />Environmental Protection Specialist <br />Colorado Division ofMinerals & Geology <br />Department of Natural Resources <br />2148 Broadway #CS <br />Grand Junction, Colorado 81503 <br />SALT IAI(ECITY.IfTAH <br />RiLIFNIx.ARQ@IA <br />T11L50N. ARI2RJA <br />lavw~cwuwlwlA <br />RE: Transfer of Permit Rights - Grazed Valley Coal Courparry, hrc, <br />Munger Canyon: Mine (C-81-020) and McClnne Canyon Mine (C-80-004) <br />Dear Mr. Mathews: <br />As we have discussed, Grand Valley Coal Company, Inc. ("GVCC"), the <br />perlittee of the Munger Canyon Mine, C-81-02Q and the McClave Canyon Mine, C-80-004, has <br />entered into negotiations with Lodestar Energy, Inc. ("Lodestar") to sell these mines and permit <br />rights. The parties are seeking to meet the requirements of § 2.08.6 of the regulations of [he <br />Colorado Mined Land Reclamation Board for Coal Mining ("Regulations") regarding the <br />proposed transfer, assignment or sale of GL'CC's mine permit rights. The submission will be <br />forwarded to you in three separate Fed Ex packages. A cover letter from Lodestar and GVCC is <br />being forwarded from GVCC's offices in Helper, Utah. This package also contains the <br />application for transfer, assignment or sale of GVCC's [nine permit rights. These applications <br />have been signed by GVCC but will not be fully executed until consununation of the proposed <br />transaction between Lodestar and GVCC. .At that time, Lodestar will provide a reclamation bond <br />and evidence of property insurance as required by the Regulations. Three copies of Lodestar's <br />application information are enclosed herewith along with an unexecuted application for transfer <br />for each permit. [n addition, enclosed are copies of the notices to be published in the Grancl <br />Junction Seruinel and the Glen>,~ood Post. Finally, the original execution page relating to Permit <br />No. C-81-020 is being sent to you by Lodestar. <br />Please give me a call when you have received these packages. We would <br />appreciate receipt of a date-stamped copy of the complete application for each permit. <br />iuembec r cr ramol, a global association of independenr law Bans with members m <br />the Unimd States and 60 counrries rhrouRhout [he world. <br />