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<br /> 999 <br />Snell&Wilmer <br />LLP. <br />5"l.T LNG QIY, tRAli <br />lAW l7FFICES <br />111 last Broadway, Suitc 900 t*~~'~~^ <br />Salt lake Ciry, Utah 84111 <br />(801) 237-1900 T~'°~'''•"a~'''^ <br />Fax: (801)237-]950 <br /> IaW'1EGILt)IWIA <br />~~~ a. Dragoo (801) 237.1998 May 27, 1999 <br />Intemec ddragoo®swlaw.com <br />Via Federal Express <br />Mr. Dan Mathews <br />Environmental Protection Specialist <br />Colorado Division of Minerals & Geology <br />Department of Natural Resources <br />2148 Broadway #CS <br />Grand Junction, Colorado 81503 <br />RE: Transfer of Permit Rights -Grand Valley Coal Company, brc., <br />Munger Canyon Mine (C-81-020) and McClane Cmtyon Mine (C-80-004) <br />Deaz Mr. Mathews: <br />As we have discussed, Grand Valley Coal Company, Inc. ("GVCC"), the <br />permittee of the Munger Canyon Mine, C-81-020, and the McClane Canyon Mine, C-80-004, has <br />entered into negotiations with Lodestar Energy, Inc. ("Lodestar") to sell these mines and permit <br />rights. The parties are seeking to meet the requirements of § 2.08.6 of the regulations of the <br />Colorado Mined Land Reclamation Board for Coal Mining ("Regulations") regarding the <br />proposed transfer, assignment or sale of GVCC's mine permit rights. The submission will be <br />forwarded to you in three sepazate Fed Ex packages. A cover letter from Lodestar and GVCC is <br />being forwarded from GVCC's offices in Helper, Utah. This package also contains the <br />application for transfer, assignment or sale of GVCC's mine permit rights. These applications <br />have been signed by GVCC but will not be fully executed until consummation of the proposed <br />transaction between Lodestar and GVCC. At that time, Lodestar will provide a reclamation bond <br />and evidence of property insurance as required by the Regulations. Three copies of Lodestar's <br />application information are enclosed herewith along with an unexecuted application for transfer <br />for each permit. In addition, enclosed are copies of the notices to be published in the Grand <br />Junction Sentinel and the Glznwood Pos[. Finally, the original execution page relating to Permit <br />No. C-81-020 is being sent to you by Lodestar. <br />Please give me a call when you have received these packages. We would <br />appreciate receipt of adate-stamped copy of the complete application for each permit. <br />ssember tEx wsmo~, a global associasion of independenr law firms wish members in <br />the umrtd Stares and (-0 counums thmughow the ..odd. <br />