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:~ • <br />• III IIIIIIIIIIIII III <br />Wyoming full Compon~ <br />445 Union Boulevard • Suite 310 • Lakewood, Colorado 80228 • Telephone (303) 98&5037 <br />e"S~~i~f~9 ~~ <br />February 3, 1982 <br /> <br />Mr. James Kent, Coal Supervisor <br />Mined Land Reclamation Division MIN CD LAND RECL4"AA1'I~N <br />Colorado Department of Natural Resources CO!0. Capt. of ~~!aYl,ral Res~~rcu~ <br />1313 Sherman Street, #423 <br />Denver, Colorado 80203 <br />RE: Canadian Strip Mine, Jackson County, Colorado <br />Dear Jim: <br />Your telephone conversation with Dave Stout regarding our <br />lack of mine development at the Canadian Strip Mine was referred <br />to me. In response to your concerns, I offer the following . <br />comments. <br />Wyoming Fuel Company is not presently developing its Pit #2 <br />mine area, for which our most recent State Mining Permit was <br />granted, for two reasons. First, as of this date the Office of <br />Surface Mining has not yet signed off on the mining plan as sub- <br />mitted to the BLM. Without such approval we cannot begin to open <br />Pit #2. Second, we do not think it is prudent, both from business <br />and reclamation perspectives, to develop a mine without adequate <br />sales contracts to support it. Last summer and early fall the <br />probability of acquiring sufficient sales contracts to allow dev- <br />elopment of this mine was very good. However, as permitting and <br />leasing delays continued, acquisition of coal sales contracts for <br />the 1931-82 winter season became increasingly remote. Had we <br />signed contracts, as we had intended, for deliveries beginning <br />in January and February, we would presently be in default because <br />we are still awaiting OSM permit approval. For that reason it <br />should be obvious that coal sales contracts should not be made <br />without permits in hand.' <br />We presently have a <br />which is presently being <br />continue when the new pit <br />the new pit area until an <br />sales agreement <br />filled from our <br />is developed. <br />with Iowa Public Service <br />stockpile. This sale will <br />we prefer not to disturb <br />is negotiated. <br />additional sales contract <br />