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',.Qdience,/nc. ~ ~- January 16, 1997 Mr. Michael B. Long Division IJirector Colorado Division of Minerals and Geology 1313 Sherman St., Room 215 Denver, CO 80203 Via Fax & Express Mail ~r~rLi~l~D JAR 17 1997 ~ivi;:on u. „~~u~ie~o a ~eo~o9Y RE: Colorado Refractories, Siloam Mine, Permit No. M-77-326 Deaz Mr. Long: Adience,Inc. is in receipt of your letter dated January 6, 1997, Similar to the State, we also are concerned about the reported mining activity and the Department's implications that Adience Inc. maybe negligent infulfillment of our permit obligations. Enclosed for your review aze two (2) mining leases that Colorado Refractories (Adience, Inc. is the successor company) originally secured with the State of Colorado in the late 1970'x. Lease No. 3038/16-S relays the rights to the "building rock" and Lease No. 2274/16-5 provides for the clay. Colorado Refractories was issued the Development and Extraction Mining Permit (referenced above) in August of 1978. Note: The State has since transferred its land ownership to the Red Creek Ranch organization which has assumed the Lessor responsibilities. Upon Adience,Inc.'s acquisition of Colorado Refractories in 1990, the Lease for the rock mining (3038/16-5) was assigned to Ferd A Mueller. This is evidenced by the enclosed lease assignment and record, which also illustrates the State of Colorado's acknowledgment of this lease transfer. Since that time, Adience,Inc. holds a mining lease to the clay only. Additionally, we have not excavated (or subcontracted the mining of) the clay since ] 989. The stockpiles have supplied our needs. Item number 5 of the Department's Observation Report dated 12/27/96, notes that Ferd Mueller is asub-contractor for Adience. Mr. Mueller is not associated with Adience Inc. and we have not contracted him for mining services. * 27 Noblestown Rd. * Pittsburgh, Pennsylvania * 15106 * 412-276-1750