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c <br /> <br />Coal Company's mining operation in Colorado under Permit No. <br />C-61-091 (the "Permit").1 <br />2. The Division of Minerals and Geology issued the <br />Permit to Powderhorn Coal Company ("Powderhorn") in 1981. <br />2.1 Powderhorn mined coal from its Colorado coal mine <br />more or less continuously from 1981 until December 1999. <br />2.2. According to the reports submitted by Powderhorn, <br />Powderhorn is a wholly owned subsidiary of Quaker Coal <br />Company. <br />2.3. I inspected the Powderhorn site on September 8, <br />2000. <br />3. Federal and state law require Powderhorn to conduct <br />coal mining operations in an environmentally sound manner and <br />to reclaim the site, once coal mining operations cease. These <br />ongoing obligations are imposed by, inter olio, the Surface <br />Mining and Reclamation Act ("SMCRA"), 30 U.S.C. §§ 1201-1328; <br />the Colorado Surface Coal Mining Reclamation Act (the <br />"Colorado Coal Act"), C.R.S. (Colorado Revised Statutes) <br />§§ 34-33-109, 113; 2 C.C.R. (Colorado Code of Regulations) <br />§ 407-2, Rules 2 and 3; the Permit; and correspondence <br />Powderhorn Coal Company is the Debtor in Case No. 00-51384; Powderhorn <br />Properties Company is the Debtor in Case No. 00-51385. <br />2 <br />