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<br />Susan L. Burgmaier <br />April 17, 1998 <br />Page 2 <br /> <br />Inc., and ARCO. This information should be presented in a format to be <br />included in the West Elk Mine permit application package. <br />Information submitted by Arch included an organizational chart showing <br />the structure and ownership within Arch. The ownership structure <br />described in the cover letter for the information is not reFlected in the <br />organizational chart, in that MCC, LLC, Arch Western Resources, LLC, <br />and ARCO are now shown. Please revise the chart to include these <br />entities. <br />Information previously submitted by MCC, LLC indicated that Cyndy <br />Swenson of ARCO will pay the required abandoned mine land reclamation <br />fees. Will this still be the case under Arch ownership? <br />Response: Facsimile versions of revised permit pages reflecting the <br />information contained in Mr. Gardner's letter are enclosed herewith. An <br />original copy of these pages is being forwarded to you under separate <br />cover by Kathy Welt at the West Elk Mine. <br />In addition, the revised organizational charts you have described will be <br />faxed and forwarded to you under separate cover directly from Arch in <br />St. Louis. <br />Finally, the person responsible for payment of the required abandoned <br />mined land reclamation fees under Arch's ownership will be Neil Novak, <br />Controller, Arch Western Resources, Inc. <br />5. The certifrcate of liability insurance provided by Arch indicates coverage <br />will begin on May 1, 1998. It is DMG's understanding that the closing <br />between Arch and ARCO is scheduled for April 30, 1998. If this is the <br />case, insurance needs to be effective on that date. Regardless of when <br />the closing is scheduled, the insurance and performance bond must be in <br />effect upon closing. <br />Response: The effective date for closing of the sale between Arch and <br />ARCO is May 1, 1998. Both the perormance bond and the insurance <br />certificate are dated to make them effective on, if not before, this date. <br />6. Mr. Edward Harris of Holland & Hart provided a list of permits which will be <br />transferred to MCC, LLC concurrent with the transfer. In addition to those <br />items listed by Mr. Harris, all °Notices of Intent" for exploration will need to <br />be transferred, as well as all temporary permits to drill and install <br />groundwater wells (Division of Water Resources). Once all of these <br />