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To: Joe Dudash Division of Minerals and Geology From: Charles M Wilson, Delta County Resident RECEIVED Subject: Bowie Resources, Ltd. ~1A~ 12 1999 Right of Way Application COC 62688 Division of Minerals 6 Geology Sections 2, 4, and 11 T. 135, R. 91 W. 6'" PM Delta County, Colorado Bowie Resources application for the Iron Point Federal Lease Delta County, Colorado Oxbow Carbon and Minerals Elk Creek Lease Tract I would like to begin my letter by stating that I am completely in favor of the Bowie Resources, Ltd. project. I would very much like to see the right of way and later the Iron Point Lease be granted without restrictions that would reduce the proposed coal production. [ have heard much discussion concerning the level of coal production in the North Fork Valley. Many people speak about it as if we could hold production at the current level instead of increasing. Also some of the environmental groups are crediting technology for the coal boom in our valley. I have seen much written information that contains just enough truth to make it dangerous concerning mining issues. There is no real magic in the coal mining industry. The majority of the coal is used to make electricity. The basic reason for this is that coal is the most economic fuel available for generation of electricity. It goes right to the principles of supply and demand, where the person that can supply the best product at the best cost wins the contracts. The reason that western coal is in such great demand is that it burns cleaner, and in our case, hotter than a lot of other available coals. To meet this increased demand, technology has been applied to the mining industry to improve productivity. This means that each coal miner is capable of producing more tons of coal today than in years past. If this were not the case the cost of electricity would be higher due to higher fuel cost. You need only look at the coal industry in Germany to see what happens when mining companies no longer maintain their competitive edge. In the coal industry, it takes time to develop a customer base just like any other business. You need to show sustained performance ro develop the trust required to win contracts. Another part of winning this trust is demonstrating a mining plan with the proper return on investment to be a viable business. The Bowie Resources, Ltd. project has been set up just that way. It has been designed for longwalV mining at the proper production level to make the return on investment needed to run a business. Delta County, like all others, is going to make some changes as we continue into the future. We can choose to grow now by answering the demand for cleaner burning coal, or we can let this pass us by and for those that will be left, wait for something else. The other options available now or in the near future do not employ as many people nor do they pay the level of _ wages and taxes that coal mining does. There are legitimate issues that need to be addressed but