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•' ~ y1O5 East Kiowa, Suite 200 • P. OBox1 679 III III IIIIIIIIII Ill..aorOa~ 80901 • (303) 475 -7005 <br />,- <br />August 16, 1982 <br />.. 1 i982 <br />,.,, . <br />Mr. Fred Banta <br />Coal Supervisor <br />Mined Land Reclamation Division <br />1313 Sherman Street, Room 423 <br />Denver, CO 80203 <br />Re: Chimney Rock Coal/Revision, File # C-023-81 <br />Dear Mr. Banta: <br />I am sure the Division is aware of the immediate need of <br />Chimney Rock Coal to acquire a permit for surface mining and <br />reclamation for the area west of Stollsteimer Creek. <br />This letter reiterates the importance of the need to acquire <br />such a permit. Chimney Rock Coal is currently shipping coal <br />pursuant to the terms of its contracts. Each of the three <br />contracts are fairly standard base-price-plus-escalation take <br />or pay agreements. However, if Chimney Rock Coal (seller) <br />does not meet the contractual minimum, the legal remedy for <br />the buyer is to force the seller to locate, purchase and ship <br />coal from another source or suffer a lawsuit. Chimney Rock's <br />contracts have force majeure clauses, but failure to ship for <br />reasons of insufficient reserves is specifically not a <br />condition of force majeure. <br />As a practical matter, if the permit for the revision area is <br />not obtained prior to October 1, 1982 and contracts are <br />breached, the legal remedies to the buyers or any negotiated <br />remedies, will undoubtedly severely restrict the mine's <br />viability. Further, if the mine were to experience a <br />contract breach for insufficient reserves, a closure of the <br />operation and termination of at least 60 people in Archuleta <br />County alone would result. <br />