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State of Colorado <br />April 7, 1993 <br />Page 4 <br />C.R.S. § 34-48-102, Mine under buildings (1984 Repl. Vol. 14 <br />& Cum. Supp. 1992) states that "No person has the right to mine <br />under any building or other improvement unless he shall first <br />secure the parties owning the same against all damages, except by <br />priority of right." Basin has failed to so secure any of the <br />owners of surface structures overlying its longwall mining <br />activities in the Golden Eagle Mine. We understand that the <br />aggregate value of structures and other improvements which may be <br />affected by Basin's activities is at least $1,000,000. Therefore, <br />until Basin provides such security, and complies with all other <br />requirements, C.R.S. 34-33-121 requires that they cease coal mining <br />under portions of the Rancho Escondido property which have surface <br />improvements. <br />Thank you for your prompt attention to this letter. <br />Very truly ycurs, <br />KRASSA, LINDHOLM, KUMLI & MADSEN <br />By ~,~~.~ ~,~ <br />Robert F. T. Krassa <br />RFTK:dr <br />Attachment <br />cc: Jeffrey H. Desautels, Esq. <br />Ed Bartlett, Esq. <br />Charles R. Baldwin <br />Office of the Colorado Attorney General <br />Earl B. White, President and General Manager <br />Krassa. L'ndholm, lGunli & ,Nadsen ~ <br />