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<br /> <br />III IIIIIIIIIIIII II <br />999 <br />STATE OF I <br /> <br />COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Deparlmenl of Natural Resuurces <br />1313 Sherman 51.. Room 215 <br /> <br />Denver, Colorado 80203 II~ <br />Phune 0031 866 3567 <br />FA%:130318}2-8106 <br /> DEPARTMENT OI <br /> NATURAI <br />March 9, 1994 RESOURCE' <br /> <br />Dr. W.D. Corley, .fir. Roy Romer <br /> Gorernor <br />The Corley Company <br /> Ken Salaxa. <br />P.O. Box 1821 F.eru~~~e Dnennr <br />Colorado Springs, CO 80401 Michael e. Fnn,; <br /> Divivon Di,enor <br />Re: Permitting and Bonding History, The Corley Company/Canon Coal Corporation/ <br />GEC Minerals, Inc., Permit Nos. 73~, 77-48, and C-81-037 <br />Dear Dr. Corley: <br />The Division has concluded its investigation of our permit and bond documents filed for <br />The Corley Company, Canon Coal Corporation and GEC Minerals, Inc., in regard to The Corley <br />Company's letter of September 19, 1993. In that letter, The Corley Company asked four <br />questions. These were: <br />Was there a formal succession of operators (Canon Coal Corporation to GEC <br />Minerals, lnc.l in writing? <br />is there any inclusion of Weckerling (Canon Coa/ Corporation) liability in any of the <br />GEC bonds? <br />is there any record of the release of the bonds? and <br />What is the basis for believing that the /Canon Coal Corporation) bonds have been <br />replaced? <br />We would like to take this opportunity to provide our answers to these questions. A summary <br />of the permitting and bonding history of this area is included for your benefit. <br />1 . Was there a formal succession of operators (Canon Coal Corporation to GEC Minerals, /nc.J <br />in writing? <br />A formal succession of operators (Canon Coal to GEC Minerals) occurred in 1976 for <br />operations in Section 24, T20S, R70W (Summary Item 201. GEC's reclamation liability as <br />a result of that succession was for disturbances in Section 24 created after May 1 , 1973. <br />2. /s there any inclusion of Weckerling (Canon Coa/ Corporation) liability in any of the GEC <br />bonds? <br />With regard to whether Canon Coal (Weckerling) liability was included in any of the GEC <br />bonds, it would appear not, in that it is a permit that binds operators to reclamation <br />liability, rather than a bond, as successions are for the transfer of permits from one <br />operator to another, rather than for the transfer of bonds. <br />