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Memo to Boulay <br />Jumbo Mountain Landaliding <br />page 10 <br />$1,435,000. The limited excerpts contain statements addressing slope <br />stability and underground mining. The report states on page 20; "an <br />inspection of the subject and surrounding area does not show evidence of <br />unstable conditions." From this statement I conclude that the author is <br />not experienced in the reconnaissance identification of unstable <br />conditions. The report further states on page 20; "However, much of the <br />property has been subject to underground coal mining..." It further <br />states on pages 20 and 21; "Due to the extent of the mining activity, it <br />is possible that soil subsidence may occur". Based on this statement, <br />I conclude that the appraiser was aware of undermining and considered it <br />in completing the appraisal. However, I can render no opinion regarding <br />the methodology or accuracy of geotechnical opinions used in developing <br />the appraisal opinion. <br />Allegation of Diminution of Value - No Conclusion Possible <br />Appraisals are performed for a variety of purposes, such as market <br />valuation, investment potential, income projection, acquisition of <br />financing, to enumerate only a few. Various appraisals correctly <br />consider very different assumptions. Without complete knowledge of the <br />purposes and methodology of an appraisal, it is difficult to draw any <br />conclusions. Comparing the conclusions of multiple appraisals is even <br />more challenging. In my opinion, the minimal excerpts provided by the <br />Mautz' in support of their claim of devaluation supports no conclusions <br />other than those stated above. However, even these preliminary <br />conclusions might be contradicted by examination of the appraisal reports <br />in their entirety. <br />cc: Susan McCannon <br />Dave Berry <br />Doc: M:\COAL\JAP\TDNREPLY.WPD <br />JP/JP <br />