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<br /> <br />1990 - A technical revi<_.ion to the Limited Impact permit No. 82-141 was applied <br />for and approved to provide for mining at the south end of the deposit. A <br />processing site, as provided for in the original 1982 permit, was dropped, and <br />a new access route was approved by the BLM. <br />1990 - A Sales Agreement was negotiated with the BLM to provide for the mining <br />and sale of limestone products from a portion of the lands covered by the <br />technical revision. <br />1990 - Anew access road was constructed. Mining at Technical Revision Site <br />No. 2a commenced about May, 1990 and continued throughout the summer and fall. <br />All of the 1990 operations were within the BLM sales contract area as shown on <br />the included plat. A lens of sand and shale alluvial material within the <br />limestone strata was unexpectedly encountered at this time. This resulted in <br />a substantial decrease in the available reserves within the TR 2a block. <br />1991 - A bid to supply chemical grade limestone to the Colorado-Ute power <br />plant near Craig was accepted. <br />1991 - It became obvious to Darryl Steele in June or July that the limits of <br />the BLM sales area would have to be exceeded if the sales contracts for 1991 <br />production were to be fulfilled. Darryl informed the BLM of the problem and <br />arrangements wee made whereby he could mine beyond the limits of the BLM sales <br />permit area for purposes of supplying limestone products to Colorado Ute and <br />other buyers, most of which were coal companies. <br />I did not communicate properly with Darryl about <br />I take full responsibility for this. I knew that <br />limits of the permitted areas by July or August. <br />preparation of a 112 permit application and hired <br />determine the full extent of surface disturbance. <br />are shown on the included plat. <br />the 110 permit boundaries. <br />he had mined beyond the <br />I immediately commenced <br />a professional surveyor to <br />The results of his survey <br />I recognise that I have violated the rules of the Board and I regret my <br />actions. The total disturbed area, including the access road, is still less <br />than ten acres. The property is bonded at a $5000 level with the Board and also <br />at ~ $3500 with the BLM. In retrospect I realize that I should have applied <br />for another technical revision to cover the areas disturbed by these 1991 activities. <br />Darryl Steele is now well aware of the situation and of the neccesity to be <br />alert to all of the rulers of the CMLRB permit. He holds an option to <br />purchase the claims and 'the stock of the company, and will be listed as <br />operator in the 112 permit application. This application will be formally sub- <br />mitted within a few days. <br />Thank you for wading through this somewhat convoluted explanation of the <br />circumstances relative to my infraction of the rules of my permit. <br />Sincerely, <br />Charles Butler, President <br />Moffat Limestone Company <br />