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5528 Indian Rock Road Salt Lake City, Utah 84117 ° (801) 272-2365 January 25, 1988 R~~~~~E~ FEB ;;1988 N2~. FY~ed Banta, Director Mined Land Reclamation Division MINED IAND 1313 Sherman Street, #423 AEC~p,MATION D-VISION Denver, CO 80203 Re: Show Cause Order and Board Hearing on February 24-25, 1988 Permit No. C-84-067 Dear Ns. Banta: We are completely confident that we can and will demonstrate that our reorganization plan has been accepted and that the Coal Gulch Mine is an economical and viable operation. In order to be able to show you that we are in active production we need more time than you have given us. Please note that at this point in time our reorganization plan has not been rejected by the court and our attorneys inform us that it appears that the plan will be accepted. Please also bear in mind that getting our financing plan approved by the court will take considerable time. The creditors will have 30 days to consider and vote on the plan and then the court will thereafter take time to approve and so on. We have people who are now ready and willing to finance our under- ground operation pending one of several good coal orders which we are presently negotiating. The price of coal, as you well know, is at a severe low due to the low prices of energy fuels such as oil and gas. We are, therefore, requesting that you as the administrator exercise your authority to vacate the "Show Cause Order" as given to you in the 5.02.3(2)(c) cause of the Regulations on the on the grounds that "...it would be demonstrably unjust to issue or to fail to vacate the order." Our request is made in consideration of the deplorable conditions of the coal market at present and the fact that Peerless Resources, Inc. is so near the point of success to begin production and become an economical and viable coal mining operation.