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MOUNTAIN COAL <br />-~~~`y r'COMPANYL.LC. <br />A Subsidiary of Arch Western Resources, LLC <br />Mr. Randy Mayer <br />Contracts Manager <br />Lang Exploratory Drilling <br />2745 West California Avenue <br />Salt Lake City, Utah 84104-4579 <br />~~~~rvE~ <br />JUL ~ 8 2003 <br />Oiriaion of Minerals end Geology <br />West Elk Mine <br />P 0 Box 591 <br />5174 Highway 133 <br />Somerset, CO 81434 <br />(970)929-SOTS <br />Fax (970) 929-5595 <br />Dear Randy, _ <br />This letter is intended as a written record and followup to our telephone discussion of <br />July 11, 2003 and subsequent meeting discussion on July 15, 2003 regarding the incidents <br />that occurred on July 9 and 10, 2003 on the 22-06 drill site on MCC's methane drainage <br />project. The incidents in question were the pumping of drilling fluids out of the mudpit. <br />These acts are not acceptable and potentially in violation of the USFS' Conditions of <br />Approval (COAs) for this project and contrary to best management practices. Lang was <br />involved in a similar incident on the RAV-10 site in 2001 and was told at that time that the <br />practice was unacceptable. MCC will not tolerate any behavior of their contractor's which <br />puts us at risk with regard to any activity occurring on the mine site and/or project areas. To <br />avoid any such issues which could further jeopardize our relationship, I strongly suggest that <br />you advise your on-site personnel to abide by the following: <br />1. Retrain your employees by reviewing the MDW Project COAs with each one of <br />them. Provide MCC with documentation that each Lang employee involved with <br />this project has reviewed these conditions of approval. Further train any new <br />personnel on the project as the arrive on site and provide the same <br />documentation. <br />2. In the event that there is any question that arises as to how to proceed with respect <br />to items which could remotely compromise or violate the project COAs, <br />immediately cease that activity. Contact Mike Peacock or his designated <br />alternate for direction on how to proceed. Do not take any further action until <br />you have received approval from Mike Peacock or his designated alternate. <br />3. Anticipate future problems with proper planning and communication to MCC. <br />4. Should the particular situation occur again, ensure that acceptable action is taken <br />and if necessary cease operations until a solution is implemented. <br />I have further instructed my supervisor's on site that they have the authority to ask that Lang <br />immediately shut-down operations if they perceive that there is an environmental and/or <br />safety issue which should be addressed. They would also immediately inform myself or my <br />alternate of the situation. Please instruct your personnel to cooperate with them in this <br />regard. <br />