Laserfiche WebLink
• <br />®Q~. <br />~. ~ <br />~~~ <br />Certified Mail -Return Receipt Requested <br />DECISION <br />• III IIIIIIIIIIIII III <br />In Reply Refer To: <br />CO-923 <br />3483 <br />C-01538 <br />JAN 141992 <br />Mr. Larry H. Fox, President ~~ <br />Powderhom Properties Company, Lessee ~~' l <br />Powderhom Coal Company, Sublessee / ~ ~, <br />Powder River Coal Company <br />Caller Box 3034 JAN ~ 3 fgg <br />Gillette, Wyoming 82716 4a^ Mia~,d <br />-~2n,atien n d , <br />Suspension of Operations and Production Granted <br />On November 8, 1991, Powderhorn Properties Company and Powderhom Coal Company <br />applied for a suspension of operations and production on mal lease C-01538, pursuant to <br />' section 39 of the Mineral Leasing Act of 1920, as amended (MLA), and the <br />implementing regulations at 43 CFR 3483.3. <br />The Cameo No. 1 Mine began production in 1979 and operated until mid-1982 when the <br />mine was idled due to mazket conditions. The December 1, 1981, modification of <br />C-01538 determined the start of the 10-year diligent development period. Approximately <br />6,600 tons of coal was produced from the lease during the diligent development period, <br />not enough to prevent the lease from terminating effective December 1, 1991. <br />Powderhom azgues that a suspension will maximize the ultimate recovery of federal coal <br />resources, m;n;m;~e the potential waste or loss of the leased resources, and minimize <br />damage to other natural resources. A Logical Mining Unit combining the Cameo and <br />Roadside Mines is not currently a feasible alternative. <br />The lease is presently accessed from underground mine workings of the Cameo No. 1 <br />Mine. The portal and all surface facilities are on adjacent private lands controlled by <br />Powderhom. Our analysis determined that preservation of the present access to C-01538 <br />is in the interest of conservation for the following reasons: <br />1. At least 90 percent of the recoverable reserves of the mine are within the lease. If <br />C-01538 is terminated. Powderhorn would not have enough reserves to justiEr• continued <br />maintenance of the development entries and would abandon the mine. Once the entries <br />are allowed to t7ood. cavin_e mill effectively cat off the onk reasonable access to oorr'ons <br />of C-('i1~38. <br />