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<br />Snell & Wilmer III Illllllllllllllll <br />999 <br /> PHOENI%, ARIZONA <br />L.L.P. <br /> TUCSON. ARIZONA <br />LAW OFFICES <br /> IRVINE. CALIFO0.HIA <br />1200 Seventeenth Street, Suite 1900 <br />Tabor Center OEN VER, COLO0.A00 <br />Denver, Colorado 80202 <br />(303)634-2000 SALT LAKE CITV, UTAH <br />Fax: (303)634-2020 <br />Robert D. Comer <br />303-634-2015 <br />rcomer@swlaw.com <br />To: Mike Long, Director, Division of Minerals and Geology <br />From: Robert D. Comer <br />Date: December 11, 2001 <br />Enclosed please find the December 2001 monthly report for the Powderhom Coal <br />Company. Please le[ me know should you have any questions. <br />Powderhorn Coal Company <br />December Progress Report to [he Colorado Division of Minerals and Geology <br />Reorganization <br />December report to be provided by A[[omey General Clark. <br />Reclamation <br />Bids for the reclamation of the refuse piles have been evaluated. A contract should be <br />awarded during December and work is scheduled to commence after the first of the year. <br />The 8-inch diameter steel cased hole into the North Decline was completed December 3, <br />2001. The three to seven day project took a month to complete due to unanticipated drilling <br />difficulties. The Colorado Department of Highways has required that all work within its right- <br />of-way be ceased in December. As a result, completion of the Water Handling System has been <br />rescheduled for the second quarter of 2002. <br />The contractor removing the remaining structures associated with the overland conveyor <br />and the structures at the North Portal is making good progress and the work should be complete <br />by year end. <br />The company has discussed with the Division of Minerals and Geology its desire to defer <br />removal of certain administrative office buildings and the utility river crossing, along with final <br />closure of a portion of CRDA # 1 pending an evaluation of reclamation and land valuation issues <br />by American Electric Power. <br />cc: Cheryl Linden <br />Robert Clark <br />Dave Berry <br />20862.1 <br />Ivlvot <br />Snell & Wilmer is a member of LEX MUND1, a leading association of independent law firms. <br />