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Page 2 <br />Here is how we would like to proceed with the state of Colorado. Please consider <br />accepting Frontier bonds for our existing bonds; the same as Kentucky does for its coal <br />mining companies. Lorencito/Picketwire is in a unique position where we do not plan any <br />disturbance to the mine or wash plant area, but do plan to start reclamation on Picketwire <br />in the next two to three months. We will probably give up our mine permit at Lorencito <br />which means the mine bond will be released. If Frontier does not provide the necessary <br />security, in the state of Colorado's sole judgement, we will proceed with substitute bonds. <br />Feel free to contact me if you have any questions. <br />Thanking you in advance fpr your consideration in this matter. <br />~~ <br />Attachment <br />D:1Data\102700.wpd <br />