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1) Remove and haul the material to the refuse pile in asemi-saturated state 2) Liquify the material and move it to a secure location until it can be dewatered 3) Defer material removal until the material can be handled in a frozen or semi-solid state Handling the material in its present condition poses significant practical difficulties for both loading and haulage equipment, since neither are designed to handle thick bulk fluids. The material could be liquefied, removed, and transported using avacuum-truck or tanker, however, placement of the material within the existing refuse disposal area or another location in either a liquid or semi-saturated state would require construction of some type of containment to prevent the material from migrating from the placement location. Given these considerations, Options 1 and 2 are probably not practical, timely, or environmentally-sound solutions, and could pose some risk relative to immediate and long-term stability of the existing refuse disposal area. Based on the current situation and review of our available options, TCC is requesting that the abatement date for Step 9b be extended to January 31, 2007 (Option 3), so that we can pursue our original plan of allowing the coal fines to freeze, with progressive removal and placement of the frozen material within [he existing coal refuse disposal area. Also, given that the successive abatement steps are dependent on completion of Step 96, we request that the abatement dates for Steps 10 and 11 be extended to February 9, 2007. While we regret that we cannot complete the full abatement program within the timeframes originally established, due to atypical and unforeseen weather conditions, we feel that the proposed approach is the most practical, environmentally-sound, and best approach, at this time. We recognize that the requested extension falls under the applicable provisions and considerations of Rules 5.03.2(2)(6) and (c), relative to extension of abatement periods beyond 90 days, and requires the written approval of the Director. Consistent with the applicable requirements and provisions of Rule 5.03.2(2)(c), we submit that the requested extension is reasonably justified under 5.03.2(2)(c)(iv), given that the need for extension is directly related to the unseasonably warm winter conditions to date, and the need to handle the material in a frozen state, as a practical matter and to minimize the environmental exposure associated with construction of a temporary containment at another location. In addition, we had requested an Assessment Conference, with the intent of reviewing and exploring the possibility of receiving consideration fora "Good-Faith" adjustment to the proposed civil penalty, given our diligent efforts to abate all aspects of the accidental coal fines dischazge and associated NOV. The Assessment Conference has tentatively been set for December 8, 2006. [f extension of the abatement date for Steps 96, ] 0 and I 1 is approved, completion of abatement would occur after the Assessment Conference, and based on my understanding of the applicable rules and guidelines, a "Good-Faith' adjustment could not be considered. Therefore, contingent on approval of the requested extension, we would withdraw our request for an Assessment Conference. We appreciate your consideration and ongoing cooperation and input, as we work together to resolve all issues associated with our accidental coal fines discharge. Please feel free to contact me with any questions regarding this request, or to discuss related matters. Best regards, For Twentymile Coal Company Jerry M. Nettleton Environmental Supervisor cc: Byron Walker/CDRMS Larry Hull/TCC Mike Ludlow/TCC Mike Berdine/TCC Dave Wallace/TCC