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III IIIIIIIIIIIII III • <br />999 <br />C <br />STr~I~E OF COLORP~DO <br />DIVISION OF MINERALS AND GEOLOGY <br />Deparmienl of Nawral Rewurces <br />131 3 Shermmi 51.. Rwm 215 <br />Denver, Colorado 80203 <br />Phone 1}03) 866 3567 <br />FAX: (3031 872-8106 <br />November 16, 2000 <br />!~ <br />~ r-~ <br />r <br />iV IC~~ .. -.~' <br />~O <br />v <br />DIVISION O F <br />MINERALS <br />be <br />GEOLOGY <br />RECLAMATION <br />M INING•SAFETY <br />A.P. Maxwell, LLC <br />C/o Jerry H. Koblitz <br />Greystone <br />5231 South Quebec Street <br />Greemvood Village, CO 80111 <br />Re: Lorencito Mine Permit Extension Request <br />Bond Replacement - Lorencito Coal Company, LLC -Permit N0. C-96-084 <br />- A.P. Maxwell, LLC - NOI X-96-218-00 <br />Picketwire Processing -Permit NO. C-81-012 <br />Dear Mr. Koblitz: <br />yell O.rrna <br />Crnerno~ <br />Gr2e E N'alchrr <br />E~rCULV~ DIIrUp! <br />hbcharl8 Lnng <br />Dh~~,inn DucUrn <br />We aze in receipt of your letter dated November 7, 2000, written on behalf of A.P. Maxwell, LLC. <br />The letter requests that the Colorado Division of Minerals and Geology (DMG) grant asix-month <br />extension for a ruling on termination of the Lorencito Canyon Coal Mine permit. We aze also in <br />receipt of a letter from A.L. Perry, dated October 27, 2000, in which related matters are discussed. <br />If an extension is granted, such an extension must be in compliance with Rules 2.01.5(2)(a) and (b). <br />It may be necessary to bring this matter to the attention of the Mined Land Reclamation Board, but <br />vve request additional information so that we can adequately evaluate and respond to the request. <br />We were hopeful that the proposed Lorencito Coal Company and associated Picketwire Processing <br />operations would proceed, and we support such activities. However, it is our understanding that the <br />previously contemplated operations have little or no viability. This appears to be due to several <br />factors including a lack of any right to enter and mine agreements, lack of market, lack of a viable <br />mine plan, and lack of rail access. We are also concerned that the bonding situation for the <br />Lorencito Canyon Mine permit, the associated NOI No. X-96-218-00 and the New Elk site may <br />present significant problems. We understand that the New Elk site will have no purpose in the <br />absence of the Lorencito Canyon Mine, and that a reclamation contractor has been selected for the <br />New Elk site. We also understand that the loadout structures at the New Elk site have been sold to <br />the Bowie Mine near Paonia. The letter of October 27, 2000 from A.L. Perry states in part: <br />"Therefore, it looks doubtful that we will be going forward with the proposed mine" and <br />"Lorencito/Picketwire is in a unique position where vve do not plan any disturbance to the mine or <br />