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III IIIIIIIIIIIIIIII` <br />999 <br />Date: March 30, 2001 <br />To: Mike Savage <br />From: Dan Hernandez <br />Re: Thoughts on Carbon Junction Permitting Plans <br />Mike: Here is a rough plan for Four Corners Materials and Oakridge Energy <br />to consider in their planning for obtaining permits from DMG for their <br />gravel permit expansion and the reclamation of the Carbon Junction Coal <br />mine. <br />1. Four Corners submits gravel pit amendment to DMG Minerals. Four <br />Corners would need to supply a separate Minerals bond for the <br />amendment area. <br />2. Four Corners applies to the Coal Program for an SO, and submits a <br />replacement Coal Bond in the current amount. This SO application <br />would need to contain some form of right to enter agreement between <br />Four Comers and Oakridge. <br />3. Four Corners should consider submitting a Phase I/IUIII bond release <br />application at this point, prior to the gravel permit amendment being <br />approved, for the portion of the coal mine that is the subject of the <br />gravel permit amendment. That way, once the amendment is <br />approved by Minerals, Coal would be able to approve the Coal bond <br />release application, and return a portion of the coal bond to Four <br />Corners. <br />4. Four Corners would then need to submit a Permit Revision to revise <br />the coal mine permit boundary and the hydrology and reclamation <br />plans. <br />