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<br />May 4, ?000 <br />Page 2 <br />(c) With respect [o coal to be mined for use in a synthetic fuel facility or <br />specified major electric generating facility, the permittee shall be <br />deemed to have commenced surface coal mining operations at the <br />time that the construction of the synthetic fuel or generating facility is <br />initiated. <br />(d) In the case of a coal lease issued under the "Federal Mineral Lands <br />Leasing Act, as amended," extensions of time may not extend beyond <br />the period allowed for diligent development in accordance with <br />Section 7 of that Act. <br />(e) Extensions of time granted by the Division or Board under <br />2.01.5(2)(b) shall be specifically set forth in the permit and notice of <br />the extension shall be made to the public. <br />The permittee of the Lorencito Mine may submit an extension request, pursuant to Rule 2.01.5(2). <br />This request must show that the initiation of operations remains a reasonable probability, but that <br />the conditions discussed in Rule 2.01.5(2) apply. Specific to the Lorencito Mine, the extension <br />request must: <br />-Discuss in detail why operations have not commenced, and why it is reasonable to <br />project that operations may commence in the future. Discuss any ongoing negotiations in <br />this regard. <br />Discuss the nature of specific coal sales contact negotiations. <br />-Discuss the stams of both surface and mineral lease agreements. I was informed after <br />our meeting, that these agreements no longer exist. Pursuant to 2.03.6, these agreements <br />must remain intact at all times. <br />-Discuss the status of the ongoing oil and gas operations which currently exist (or will <br />exist) at the Lorencito site. [t will be necessary to demonstrate that the oil and gas <br />operations have not (and will not) precluded the currently coal mining operations. <br />VVe are not inclined to approve an indefinite extension, but a one year extension may be reasonable <br />if there is substantial basis for such an extension. <br />Allowing the Lorencito Mine permit to terminate, and subsequently resubmitting a permit <br />application for the Lorencito Mine, is always an option. Such an application would be considered a <br />new application and would be subject to all review and public comment procedures. It is my <br />understanding that even if the current permit remains in effect, a major Permit Revision will be <br />required to update the Lorencito Mine mining and reclamation plan. <br />