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iii iiiiiiiiiiiu iii 999 P.O. Box 1488 Paonia, CO 81428 971}527-4135 Fax 970-527-2234 1 RECEIVED February 27, 2001 Tet~v~ zlyB or ~ P~ MAR 0 5 2001 David Berry Coal Program Supervisor Colorado Division ofMinerals and Geology 1313 Sherman Street Room 215 Denver, CO 80203 RE: Reclamation Bonds Dear Mr. Berry Division of Minerals B Geolopp I wanted to use this opportunity to bring you up to speed on our efforts to replace the Frontier reclamation bonds and clear up the Notices of Violation written to Bowie at the No. 1 and No. 2 mine. Currently your agency has given us to March 20's of this year to replace the Frontier bonds with another surety company. In order to offer more security to the State we posted a two million dollar letter of credit on the No. l and No. 2 mine. Also we are continuing our reclamation at the No.l mine. The west portion of this mine is approximately-seventy_nercent ~mo_c~_I tee At-the east portion of the No. 1 mine we have a contractor taking down all of the structures. We estimate this to be thirty percent complete. AEI Resources is continuing its restructuring efforts and we believe we will have all of our issues resolved in the near future. Unfortunately we will not be able to totally replace the Frontier bonds by March 20's. Therefore, we asking the DMG to consider issuing us a thirty day extension to this deadline to April 20~'. As part of this extension request we would increase the letter of credit you aze holding now to five million dollars. We would also ask this increased letter of credit be applied to the No. 2 mine. This would essentially terminate the NOV issued on this permit on or before the March 20'" deadline. The State's exposure would then be reduced to only the No. 1 mine which is currently in reclamation. On the Cutting Edge of Customer Service BOWIE RESOURCES, LIMITED