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02!28/2001 10:21 9?09295255 EOWIE RESOURCI I~IIII~~IIIIIIII~II PAGE 02 <br />P.O. Box 1488 <br />February 27, 2001 <br />BOWIE RESOURCES, LIMITED <br />Poonla. CO 81428 470527-x135 fax 976527-2234 <br />David Berry <br />Coal Program Supervisor <br />Colorado Division of Minerals and Geology <br />1313 Sherman Street Room 215 <br />Denver, CO 80203 <br />RE: Reclamation Bonds <br />Dear Mr. Berry <br />I wanted to use this opportunity to bring you up to speed on our efforts to replace <br />the Frontier reclamation bonds and clear up the Notices of Violation written to Bowie at <br />the No. l and No. 2 mine. <br />Currently your agency has given us to March 20a' of this year to replace the <br />Frontier bonds with another surety company. In order to offer more security to the State <br />we posted a two million dol]ar letter of credit on the No. l and No. 2 mine. Also we are <br />continuing our reclamation at the No.l mine. The west portion of this mine is <br />approximately seventy percent complete. At the east portion of the No. 1 mine we have a <br />contractor taking down all ofthe structures. We estimate this to be thirty percent <br />complete. <br />AEI Resources is continuing its restructuring efforts and we believe we will Have <br />all of our issues resolved in the near future. Unfortunately we will not be able to totally <br />replace the Fronrtier bonds by Mazch ZOr". Therefore, we asking the DMG to consider <br />issuing us a thirty day extension to this deadline to April 20s'. As part of this extension <br />request we would increase the letter of credit you aze holding now to five million dollars. <br />We would also ask this increased letter of credit be applied to the No. 2 mine. This <br />would essentially terminate the NOV issued on this permit on or before the March 20a' <br />deadline. The State's exposure would then be reduced to only the No. 1 mine which is <br />currently in reclamation. <br />On the Cu111ng Edge o1 Customer Service <br />