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STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Department of Natural Resources 1313 Sherman St., Room 215 Denver, Colorado 80203 Phone: (303) 8663567 FAX: (303) 8328106 RECEIVED JUN 1 ~ 2004 COLORADO DIVISION O F MIN&RALS GEOLOGY 0.EC LANATION•NINING SArETY•5<IENCE June 2, 2004 Tonya Hammond J.E. Stover & Associates 2768 Compass Drive, Suite 101 Grand Junction, CO 81506 RE: Snowcap Coal Company, Inc. Roadside Mine Permit No. C-1981-041 Meeting Regarding Possible Post-mining Land Use Change Proposals Dear Ms. Hammond: Russell George Executive Dlrect0! Ronald W. Cattany Division Director Natural Resouv:e Trustee Last week I met with you and Jim Stover, to discuss issues associated with alternative post-mining land use proposals that may be forthcoming for portions of both the South Portal Facilities Area and the Unit Train Loadout Area (UTL). You indicate that a Palisade area fruit grower has recently expressed serious interest to Snowcap Coal Company (SCC) with respect to acquisition of portions of the South Portal Area facilities for an Industrial/Commercial post-mining land use. In addition, a separate individual has expressed an interest in use of portions of the Unit Train Loadout Area (UTL) for a residential post- mining land use. The possibility of alternative post-mining land uses for both of these areas has been considered in the recent past, but different prospective landowners were involved, and the nature of the alternative uses envisioned were different. You indicate that an offer is under consideration with respect to the South Portal Area, and that possibility of a proposed land use change submittal for this area would likely occur prior to such action in regard to the UTL area. Issues pertinent to these areas are addressed separately below. Keep in mind that these are our initial comments, offered to assist you in the development dt the revision applications, if you choose to proceed. It is possible that additional concerns may arise during the course of our review, if you choose to proceed and submit alternative land use change revision applications for either area. In addition to the land use change issues, we briefly discussed the implications of the gravel extraction permit for which SCC has submitted an application. This issue is also summarized below. South Portal Facilities Alternative Land Use (/ndustria/ or Commercia/ and Residential You indicated that SCC is considering an offer for alease/purchase option with a Palisade orchard owner, and showed related correspondence. The individual has indicated an interest to use existing facilities on both the portal (upper) bench and the lower facilities area for commercial or combined commercial/residential use. He has indicated that facilities on the lower level would be used for seasonal fruit storage and sales (roadside fruit standl, as well as equipment and supply storage. The warehouse/shop on the upper bench would be used for additional storage. In addition, he has expressed interest in conversion of the existing office building on the upper bench to residential use as seasonal housing for DNision of Minerals 6 Geology Bill Owens Governor Office of Office of Colorado