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Joe Dudash, Reclamation Specialist December 7, 1992 Page 2 Second, the 1989 amended permit boundary included a portion of Rancho Escondido, a county approved and platted subdivision. This subdivision includes four houses, a lodge, a pool, fifteen cabins, community water and sewer systems and other buildings. We cannot find any indication that your office has been advised that the applicant intends to undermine this subdivision. Part of the subdivision may already have been undermined. We understand that there are at least sixteen other owners of overlying land who have not been listed in the permit applications and who have not received notice. Third, based on the expressed intentions of Basin Resources, resultant subsidence of the surface appears inevitable if mining proceeds. As we understand it, only the alluvial plain associated with the Purgatory River is to be protected from subsidence, by limiting coal extraction under that area to use of the room and pillar method. We understand that all of the area north of the alluvial plain, comprising substantially all of Raton West's approximately 2,500 acres, is to be mined in such a way that all of the coal will eventually be extracted, allowing subsidence to occur, either as the long wall process advances or as retreat mining is conducted. This will, of course, cause damage to existing structures and will also cause damage to any structures which may be built in the future since, as you know, subsidence does not necessarily affect the surface immediately when the coal directly under a particular spot is extracted. I understood from our telephone conversation last week that in any event, you will be conducting the mid-term review of Basin Resources' permit before the end of this year. Raton West would like to be fully involved in that review process and is ready to provide to you substantial additional information concerning its property and the conditions on the surface. Please do not hesitate to call me if you desire any additional information. I should also mention that specific information such as maps and surface conditions will be immediately available from Raton West's local manager, Mr. Rich Babnick, telephone (719) 846-4491. Thank you again for your assistance in this matter and please do not hesitate to contact me if you wish to discuss any aspect of the matter. Very truly yours, KRASSA, LINDHOLM, KUPII,I & MADSEN Robert F. T. Krassa RFTK:dr cc: Charles R. Baldwin Richard Babnick Kinsaa L'MhoLn, Kum!! & Madam