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PQ_y • PEABODY COAL COMPANY Wo~tern Dlvlslon Mr, Peter O'Connor Colorado Mined Land Reclamation Division 423 Centennial Building 1313 Sheramn Street Denver, CO 80203-2273 • Ill llllllllllllllll sa December 16, 1987 1300 South Vale Flegstett, Arizona 66001 (602) 77<~6253 ( ~ n:_s DEC ? 1 1987 RE: Seneca II-W, Permit C-82-057 ~~ry5y., i ~~' ~E:CLti,~~~zl~~;',f r,r . Dear Mr. 0 Connor: 0t:,titflu As a follow-up to your letter of December 2, 1987 and the subsequent phone conversation between yourself, Gary Melvin, and me concerning the issue of putting Permit No. C-82-057 into temporary cessation, let me reiterate our understanding. First, as we explained in the phone conversation, Peabody management is considering the erection of a 1260 dragline at Seneca as a means of meeting the long-term needs of the coal customer. A decision on the 1260 is to be made in January, 1988. If the dragline is approved, revised mine plans will be developed which would delay the start-up of Seneca II-W. If the dragline is not approved, activity at Seneca II-W would become much more imminent, contingent, of course, on completing the stipulation responses concerning water rights. Also as we discussed, Peabody is currently doing exploration activity to further define the coal reserve at Seneca II-W under the auspices of Permit No. C-82-057. We have a concern about the ability to continue this drilling if the permit is put into temporary cessation. The Division, as we understand, is looking into this issue. If the 1260 dragline is approved and there is a workable mechanism to continue drilling activities, Peabody will consider putting Permit No. C-82-057 into temporary cessation. Logically, a decision on this issue will occur in January, 1988. I hope the above discussion alleviates the Division's concern aver this issue. If you have further questions, please let us know. Sincerely, / ~" ~--.. James S. Lunan Manager - Permits sk