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~- <br />CO-933 <br />3483 <br />C-22777 <br />Certified Mail -Return Receipt Requested <br />Rich A. Munson, Executive Vice President <br />Kerr Coal Company <br />P.O. Box 773457 <br />Steamboat Springs, CO 80477 <br />JUN 19 2001 <br />DECISION <br />Decision of May 22.2001. Vacated <br />iii~iiiiiiiiiium <br />999 <br />RECEIVED <br />JUN222001 <br />Division of Minerals and Geology <br />Extension of Suspension of Operations and Production Granted <br />On March 16, 2001, Kerr Coal Company applied for an extension of the suspension of operations <br />and production on coal lease C-22777, which we originally granted for 5 years effective April 24, <br />1996. Suspensions of operations and production are authorized by section 39 of the Mineral <br />Leasing Act of 1920 (MLA), as amended, and the implementing regulations at 43 CFR 3483.3. <br />By decision dated May 22, 2001, we denied Kerr's application to extend the suspension on the <br />basis that it is uneconomical to transport the coal to the market and that damage to the resource <br />will not occur if the suspension is allowed to expire. Additionally the continued lack of a market <br />or sales contract does not, in itself, constitute justification for a suspension of operations and <br />production. We met with Kerr representatives on June 13, 2001, and the company submitted <br />additional data on June 15, 2001. We have reviewed the marketing study in light of the very <br />recent upswing in coal and oil and gas prices, and agree that a I -year extension of the suspension <br />of operations and production will maximize Kerr's opportunity to determine if the mine can be <br />reopened in the next year, rather than not for the foreseeable future. <br />Accordingly, the suspension of operations and production on coal lease C-22777 is extended <br />until June 24, 2002. <br />