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<br />Dr. W.D. Corley, Jr. -3- March 9, 1994 <br />The Carley Company <br />4. What is the basis for believing that the (Canon Coal Corporation/ bonds have been <br />replaced? <br />Our belief that Canon Coal's bonds were replaced is the fact that a formal succession of <br />operators occurred for Canon Coal's operations on Section 24, T20S, R70W, with a bond <br />for $25,000.00 submitted by GEC Minerals in 1976, and the fact that Conversion/ <br />Amendment Permit No. 77-48 was issued to GEC Minerals on August 26, 1977 for lands <br />located in Sections 19, 30 and 31, T20S, R69W, and Section 24, T20S, R70W, with a <br />bond for 566,440.00 submitted by GEC Minerals in 1977. <br />We hope this provides a satisfactory response to The Corley Company's inquiries into the <br />history of The Corley Company/Canon Coal Corporation/GEC Minerals, Inc. permits and bonds. <br />Please contact us for any further information we may provide. <br />Sincerely, <br />Daniel I. Hernandez <br />Senior Environmental Protection Specialist <br />DIH/bjw <br />cc: Dave Berry <br />Shawn Smith <br />m:\oss\bjw\dih <br />