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Lazamie, Wyoming, or Kremmling, Colorado. Disturbed areas have been reclaimed and all <br />recoverable reserves have been mined from those areas. Any resumption of mining will <br />require starting a new pit. Currently, it is still uneconomical to truck the coal to the railhead <br />and alternative means of transportation have not developed. No recoverable reserves will be <br />bypassed if lease C-22777 is relinquished and the lands are re-leased in the future. Sufficient <br />quality recoverable reserves on and adjacent to the lease remain for future development. <br />Failure to extract recoverable reserves due to the lack of a sales contract or other marketing <br />arrangement, in itse/f, does not constitute damage to the coal resource that would qualify a <br />lease for a suspension. It is not in the public interest or good land stewardship to continue to <br />allow Kerr to hold this coal lease without any production or return to the public. Thus, an <br />additional suspension is not warranted. <br />Accordingly, your application to extend the suspension of operations and production for an <br />additional five years is denied. The suspension of operations and production expired <br />effective April 24, 2001. <br />The effects of the suspension on the lease are: <br />1. Readjustment Date. Because a section 39 suspension of operations and production <br />suspends the beneficial use of a lease, the terms and conditions of the lease aze extended by the <br />duration of the suspension. The term of the lease is extended by the suspension period of 5 <br />years. The lease would normally have been readjusted on July 1, 2000, but because of the <br />suspension, the next readjustment of the lease terms and conditions will occur on July 1, <br />2005. <br />2. Rental. Coal lease C-22777 was in lease year 16 when we granted the suspension of <br />operations and production; however, the suspension does not affect the lease anniversary date <br />of July 1. Your next rental payment is due on or before July 1, 2001. <br />3. Continued Operation Year. We suspended lease C-22777 during the last month of <br />continued operation yeaz (COY) 12. The new date for the end of COY12 is Apri130, 2001. <br />4. Advance Royalty. According to the Little Snake Field Office, your continued operation <br />shortfall for COY12 is 29,250 tons. If you wish to continue holding lease C-22777, you <br />must apply to pay advance royalty for COY12. To avoid the assessment of a late payment <br />penalty, you must apply to pay advance royalty within 30 days of receipt of this decision. If <br />you anticipate that lease C-22777 will not produce coal during COY13, which began May 1, <br />2001, you must also apply to pay advance royalty for COY13 within 30 days of receipt of this <br />decision to avoid a late payment penalty. Please send your applications to pay advance royalty <br />to: <br />Bureau of Land Management <br />Little Snake Field Office <br />455 Emerson Street <br />Craig, CO 81625-1129 <br />