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~.., ARCO Coal Company III IIIIIIIIIIIII III 555 Seventeenth Streel Denver, Colorado 80202 " Telephone 303 293 4000 July 15, 1992 Mr. Tom D. Gillis Reclamation Specialist State of Colorado Mined Land Reclamation Division Department of Natural Resources 1313 Sherman St., Room 215 Denver, CO 80'l03 RE~~,V~~ JUL 161992 MINERALS 8 N OF GEOLOGY Re: Coal Storage Silos & Overhead Conveyors Hawks Nest Mine -Oliver Site Gunnison County, CO Dear Mr. Gillis: Late last month I advised you Mountain Coal Company had acquired the two concrete silos and overhead conveyor from the Denver and Rio Grande Western Railroad. The purchase of these facilities was included with other transactions we recently completed with the railroad. Our West Elk Mine currently has no plans to use the structures. However, we would like to be notified when the MLRD has firmed up a reclamation schedule that would include demolition of these facilities. We would also appreciate as much advance notice as possible so we can make an updated assessment of our coal storage and loading needs for West Elk. If, at that time, we can justify a foreseeable need for these structures, we would then like to discuss with the MLRD the retention and re-permitting of the structures by Mountain Coal Company. One suggestion was contained in my letter to you of November 12, 1991, that discussed an escrow arrangement for MLRD funds which could be used at a future date. An alternative, suggested by you, assuming the structures can be refurbished and actually put to use by West Elk, was for the MLRD to complete its reclamation except to leave these structures intact. This would establish a good environmental baseline upon which a new permit could be considered. APCO Coal Company 1~ a Dlvlalon of Rllantic RlcM1lleltlCOmpany ARC-6~J] IJ-861