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SRN. 3.2000 11~28RM DIWiMINERRLS&GEOLOGY N0.592 P.3i7 ~POWDERHORN COAL. COMPANY November 22, 1999 Mr. lames Edwards State Airector, Bureau of Land Management Colorado State Office 2850 Youngfield Street Lalcewood,'CO 80215 RE: .Relinquishment of portions of Federal Coal Leases C-01538 C-024998 C-029889 C-078049 Dear Mr. Edwards: p.C. box 140 p~lls+de. Colorado et526 (070) fBa.7951 Fax )sra)+e4alel Powderhorn Properties Company is the record titleholder of the entire lessee's interests in the Federal Coal Leases identified above (the Leases). As your qualification files reflect, Powderhorn Coo! Company is a Colorado Corporation. Pursuant to 43 CFR §3452.1 and to Section 20 of each of the Leases as readjusted, Powderhorn Coal Company hereby relinquishes the portions of Federal Coal Leases C-01538, G024998, C-029889, and C-078049 described on the attached )exhibits 1-4 and depicted on Exhibit Sa, including the surface lands associated with the portions and all of the lessee's interest therein. In support of this relinquishment, Powderhorn Coal Company states that it has paid all rentals and royalties due through the date of filing this letter, the lease accounts are in good standing and all other terms of the Leases have been met. Powderhorn Coa] Company's Roadside Soutlt and North Portal Mines will be closed in December of 1999, of which tJtese leases are a part, and the process of permanent reclamation will begin. The portions of these leases that are retained are for final mining and for ventilation and haulage routes during reclamation. Upon approval, Powderhorn requests that the partial relinquishment of these Leases be effective as of the date of filing this letter, Please notify Powderhorn Coal Company if any further information is required or if you have any questions regarding this relinquishment. Sincerely, ,~,a. ~a/~/99- Name and Title ~Q~, ~ ~~ ~~/ ~ ~ ~n