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u RMERICRN SHIELD CDRL COMPRNY Suite 175 10830 N. Central Expwy. Dallas, TX 75231 (Z14) 69Z-7872 -= __ ..r ~ -~ ~~ 1411 n I .y~ .~~/ 'r~L :: L_hfK~.. I IQIVML I~_ 1•,,~r ~n~ P. 0. Box 1334 Evergreen, CO 80439-1334 Jan. C1, 1939 Mr. Bruce Conrad, Manager brand Junction District Office Bureau of Land Managenent U. 5. Dept. of the Interior 764 Horicon Drive Grand Junction, CD 81501 Mr. John 6~nolaub, Manager Grand Junction Resource Area Bureau of Land Managenent U. 5. Deot. of the Interior 764 Hori.on Drive Grand Junction, GO 81501 Re: Terminatipn of American Shield Coal Company involvement to the Fruita Protect: Coal Lease C-01~79~2 Coal Lease C-01~78~', Coal Lease C-01278:4 Gear Mr. Conrad and Mr. Sinolaub: During the past eight months American Shield Coal Company (ASCC) has been attempting to renegotiate an agreement with th>_ owners of a royalty interest in the Fruita Protect. Unfortunately, these efforts have been unsuccessful, with the result that the Company has been unable to continue exploration and development activities of the above referenced federal coal leases. Fmerican Shield is now in the process of assigning its leases and concluding its affairs in Colorado. It is anticipated that the new lessees will submit a new resource recovery and protection plan (R<PZ). Similarly, it will be necessary for the new lessees to submit new min= plan applications to MLRD and BL M. However, as you have pointed out, th_ old permit applications which were withdrawn by ASCC in late June 191;6, contain valuable em•ironmental baseline data and coal ^uality infernation which should be useful to 9LM in its effO.^is toward efficient land and resource management in the brand Junction area. Flease feel fee to use whatever information you eguire to fulfill your obligations in this regard. However, within the spirit of the law please maintain confidentiality of al] other pertinent portions of those documents and files. The transfer of data betweer, ASCC and the n_w lessees has not been resolved. With regard to reclanetion activities, drill hole F16-81 has been reclaimed per vour guidelines and to the satisfaction of MLRD lpendin^_ establishment of the vegetative cover). Drill hole F61, reported to have been left open to monitor methane pas, acpears to have been sealed and reclaimed. During a field insp_ction conducted by Mr. Ton Gillis of MLRD, na evidence of this well opening was found. We conclude that in the move of the Company files in 1965, the records pertaining to the abandonment and reclamation of this drill hole were misplaced and an incvrrec`. assumotion as to its status was inferred. American Shield no longer has any us_ for the water moniterino wells and leaves their continued use up to the dis^_retion of BLM, f1LRD and the new lessees.