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Mr. Fred R. Banta <br />Golden Eagle Mine <br />May 17, 1989 <br />to more effectively manage our coal mining operations in southern <br />Colorado. <br />A major consideration in the Company's restructuring was that of <br />environmental permitting and compliance. The Lakewood engineering <br />functions were transferred to the mine operations group in Weston <br />to ensure efficient permitting of operating areas, both underground <br />and on the surface. Responsibility to ensure compliance with <br />permit provisions and other environmental requirements was also <br />transferred to mine operations. Further, the mine operating <br />departments, themselves, were re-aligned so as to provide the <br />necessary technical, physical and human environmental resources <br />under one department head, who is now responsible for both <br />permitting and compliance. Attachment A is the mine operations <br />structure as it existed in 1988, and Attachment B is the far more <br />effective organization put in place in 1989. <br />The department head is Carl Winters, Manager of Engineering and <br />Quality Control, a Registered Professional Engineer in Colorado <br />with considerable experience with permitting and compliance in both <br />Colorado and Utah. Carl has the in-house resources and contract <br />services available to him to ensure WFC permitting and compliance <br />requirements are fully met. Carl has hired an Environmental <br />Coordinator to assist him, see Attachment C, and is developing a <br />comprehensive action plan to meet the permitting and compliance <br />needs. Carl also will call upon the resources of our parent <br />company, K N Energy, Inc., to ensure that our environmental <br />objectives are met. Dave Stout, formerly of WFC and now K N's <br />Environmental Specialist, has and will continue to provide Carl <br />with historical information and with advice regarding the property. <br />Carl also is working with two in-house attorneys who have <br />substantial experience in environmental matters - Bill Garner, Vice <br />President - Law, and Larry Corte, Environmental Attorney. Jerry <br />Koblitz, a consultant with Greystone Development, has been re:.ained <br />to provide detailed environmental engineering assistance. <br />We think it would be useful for members of vour staff to meet from <br />time to time with our environmental compliance team so that we can <br />dicsuss our action plans and compliance record. Accordingly, we <br />would propose to hold a quarterly performance review with your <br />staff. <br />It is important for you to understand that Carl and I are <br />personally accountable to Mr. Battey for future observance o° she <br />Act. We have the authority to take the necessary steps to secure <br />compliance. Our staff is quite aware of WFC's responsibility in <br />this regard. <br />We at wFC would like an opportunity to demonstrate to the State of <br />Colorado that we are, and will continue to be, responsible <br />corporate citizens. Mr. Battey and I on behalf of WFC are <br />