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14300 Highway 12 <br />Weston, Colorado 81091 <br />(719)868-2761 <br />FAX (719) 868-2275 <br />BASIN <br />RESOURCES,~Nt. '~~ <br />a subsidiary of ENTECH, Inc. .~n~ <br />October 15, ].993 /~~ p~ <br />Candido and Irene Charon <br />Route 1 Box 4?7 <br />Trinidad, Colordo 91091 <br />Dear Candido and Irene: <br />1~3~ ax -~l e ~,/~ir <br />/1// /`i• <br />On July 7, 1999, Wyoming Fuel Company (WFC) notified you that it <br />intended to commence underground coal mining operations beneath your <br />property. Notice was provided at that time pursuant to requirements <br />contained in a mining permit from *_he Colorado Mined Land Reclamation <br />Division (Division). Regulations of the Colorado Mined Land Reclamation <br />Board, specifically, Section 4.?0.2, requires that such notice be given <br />at least six months prior to commencement of mining under your property. <br />Y <br />Basin Resources, Inc. (Basin) is *_he successor to WFC, and currently <br />operar.es the Golden Eagle Mine. Recently, the Division issued Basin an <br />administrative notice of violation, based on the fact that the original <br />notice issued by wFC failed to include certain s*_atements required by the <br />applicable regulations. The Division ordered Basin to send this <br />additional notifica*_ion to you at this time. The Division ordered Basin <br />to notify you of the dates *_hat mining would occur that could cause <br />subsidence of the surface, and of what measures will be taken to prevent <br />or control adverse surface effects. <br />The mining operations have already occurred under your property. In <br />the area of your property, Basin's mining operations utilize the longwall <br />mining technique, which may result in what is called "planned subsidence" <br />in the laws and regulations. Typically, any such subsidence occurs <br />relatively quickly, and as a result causes less disturbance of the <br />surface. However, effects may take longer to express themselves. To the <br />extent that subsidence may occur, i*. may take p'_ace over a substanr-ia1 <br />period of time. <br />If you have any questions regarding this Letter, please contact me. <br />Sincerely, <br />BASIN RE <br />RC <br />INC. <br />S <br />O <br />U <br />E <br />S <br /> ~ <br />~y <br />~, <br />~ <br />~ <br />~ <br />~ <br />Ron Thompson <br />Senior Mine Engineer <br />