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<br />Snell &Wilmer <br />L.L P. <br />uwts <br />1200 Seventeenth Sveet, Suite 1950 <br />Tabor Center <br />Denver, Colorado 80202 <br />(303)634.2000 <br />Fax: (303) 634.2020 <br />Robert D. Comer (303) 634-2015 <br />Intema: rwmer®swhw.com <br />RECEIVED <br />FEB 2 6 2001 <br />Division of Minerals and Geology <br />February 23, 2001 <br />VIA HAND DELIVERY AND FACSIMII,E TRANSMISSION <br />Cheryl A. Linden, Esq. <br />Robert D. Clazk, Esq. <br />Office of the Attorney General <br />Business and Licensing Section <br />1525 Sherman Street, 5th Floor <br />Denver, CO 80203 <br />Re: Third Fortnightly Report, NOV # CV-2000-010 <br />S&W File No. 38283.0001 <br />Dear Cheryl and Bob: <br />iii iiiiiiiiniiiiii <br />999 <br />oe+vtn ca~anoo <br />ni0E21C(,AM11NA <br />TIA"'9.Y1. APRLWA <br />mvwe cvnou+v, <br />sntruxsarv.urnx <br />Fax: 303-866-3558 <br />Fax: 303-866-5671 <br />This letter constitutes Powderhorn's Third Fortnightly Report pursuant to your letter of <br />January 12, 2001. Powderhorn appreciates the wntinued willingness of the Colorado Division <br />of Minerals and Geology (DMG) and the Colorado Attorney General to allow Powderhorn to <br />work toward resolving the financial assurance issue created by the federal delisting of Frontier <br />Insurance Company ("Frontier"). <br />The report contains three parts as identified in your letter. Part I identifies the efforts <br />taken by Powderhorn during the period between February 9 and 23, 2001, to obtain a <br />replacement bond, including contact information. Part II identifies the steps taken. by <br />Powderhorn during this period to have Frontier obtain an alternative form of financial assurance. <br />Part II[ identifies other activities undertaken by Powderhorn during this period to resolve this <br />matter. <br />Part I. Efforts To Obtain A New Bond <br />The following discussions were held during the intervening period. <br />• Mazsh USA, Inc. - (Samuel F. Robinson, ]r., Senior Vice President, 4700 Old Kingston Pike, <br />PO Box 19810, Knoxville, TN 37939-2810; Tel: 865/450-3358) Sam Robinson indicated <br />that he is working with several carriers to form a syndication for reclamation bonding. The <br />advantages of a syndication to the insurers is the shared risk in lieu of a very tight re- <br />insurance mazket for this product. He did not have a timetable but indicated that he will keep <br />us informed. Obviously, credit issues would be a factor in the likely success of this <br />Snell & Wilmrr is a member of tex MuND~, a leading assnaaunn of independent law Lrms. <br />