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^ MW2 09 '95 04~19PM HOLLRNDBHRRT P.3i4 <br />HOLLAND & HART <br />ATTORNEYS AT IAW <br />Mr. David Berry <br />March 9, 1995 <br />Paqe 2 <br />representatives, and M.A.G. was to cause its employees to <br />mine and produce coal from the mine under the supervision of, <br />and in conformity with the instructions of, Bowie and its <br />representatives. It is not clear whether M.A.G.'s rights and <br />obligations under the contract constitute ownership and <br />control as those terms are defined in the applicable <br />regulations. <br />Based on a preliminary review, it appears the only AVS <br />violations with which M.A.G. could arguably be linked are the <br />K A D Mining & Leasing Co. violations in 1991 and 1992 in <br />Kentucky. M.A.G. has confirmed that certain of its <br />principals owned a company which performed contract services <br />for K A D Mining and Leasing Co. It appears that due to the <br />loss of a contract K A D became insolvent and failed to <br />perform certain reclamation obligations on its permit in <br />Kentucky. Our initial research suggests in fact the site has <br />been reclaimed, and we understand representatives of the <br />Kentucky Department of Natural Resources are prepared to <br />inspect the site. This inspection was scheduled to occur <br />earlier but winter snows have delayed it. Assuming the site <br />has been reclaimed to the satisfaction of Kentucky officials, <br />and assuming compromise and payment of outstanding penalty <br />amounts for which arrangements are underway, we anticipate <br />this matter will be resolved in the near future. <br />M.A.G. has no knowledge concerning the balance of the <br />violations reflected in the computer printouts. I spoke with <br />Mr. Stanley who has never heard of, much less been affiliated <br />with, Blue Gem Resources, Inc., Linda Coal, O.K. Coal Co., <br />Black Cat Coal Co., Larry Taylor, Paul McPeek, Larry E. <br />Davis, Sharon or Carl Wayneburn, Buckner Hinkle, Jr., Jerry <br />Leoo or Linda F. Mills, Leonard Messer, or Robert Collins. <br />We suggest there may be a data input error in the AVS data <br />bank or that, perhaps, there is or was a company in Kentucky <br />named Mag Mining Inc. (of which Mr. Stanley has no knowledge) <br />which is linked to the violations. However, the M.A.G. <br />Mininq, Inc. which has contracted with Bowie to supply <br />employees is a Colorado corporation which was not formed <br />until January 1995 and has never conducted business in <br />Kentucky. Tf DMG plans to take the position M.A.G. Mining, <br />Inc. owns or controls the Bowie mine, Bowie requests that it <br />be allowed the opportunity to work with DMG to confirm there <br />is no legitimate linkage between these violations and <br />violators and M.A.G. Mining, Inc. <br />Bowie appreciates the opportunity to submit this <br />1nf0rRldtlOn, and looks forward your response and to <br />