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.= <br />recently have decided to amend the Plan to clarify that Powderhorn Coal Company will not be <br />dissolved or merged under the Plan. During August, Mr. Clark began communication with <br />Messrs. Fogel and Martin of the Dechert firm. Quaker is quite interested in continuation of this <br />dialogue to fully resolve the State's concerns. <br />Reclamation <br />Work was begun on coal preparation plant demolition the week of July 9, 2001. Plant <br />demolition is progressing and is expected to be completed in October 2001. Final grading of the <br />refuse at CRDA-2 was begun in early July and should be completed by the end of August. At <br />that point, Powderhorn will begin to place the cover material on CRDA-2 with final grading, <br />seeding and mulching to be wmpleted in late Fall 2001. As part of the reclamation of the pile, <br />Powderhorn is will be cutting a drainage ditch along the north side of CRDA-2 to control surface <br />water runoff, <br />The North Decline Water Handling System contract has been awarded in accordance with <br />requests from the Division. The work is scheduled to be performed in October 2001, contingent <br />upon obtaining the necessary permits from the regulatory agencies. The Water Quality Control <br />Division advised Powderhorn that its amended discharge permit should be approved by the end <br />of September. Powderhorn anticipates that the new water handling system will be completed by <br />year end. <br />Re-grading of the Roadside Refuse Pile will be partially completed by late Fa112001. A <br />contract for the demolition and removal of the powerline and substations at the Roadside <br />property was signed by Powderhorn on July 6, 2001, and should be completed by Fall 2001. <br />Removal of the Unit Train Loadout has been deferred to accommodate the executed <br />Lodestar agreement to ship coal to TVA at the Powderhorn loadout. Reclamation of CRDA-1 <br />will be deferred until 2003 so a refuse pile is open to accept coal and refuse material from other <br />reclamation activities. Similarly, Powderhorn has deferred removal of the office complex <br />pending the determination of commercial interest in these facilities. The Division and the Board <br />have been informed of these potentials, and Powderhorn will submit a minor revision to the <br />Division to address these issues. <br />The aggregate value of the above authorized work is estimated to exceed $500,000. <br />Upon completion of this work by year end, the cumulative reclamation will far exceed more than <br />one-half of the total reclamation obligation. The remaining reclamation obligation includes <br />structural demolition, regrading the North Portal scheduled for completion in 2003 and <br />reclamation of CRDA-1 rescheduled for completion in 2004. <br />cc: Cheryl Linden (all via email) <br />Robert Clark <br />Dave Berry <br />Mark Held <br />Mike Jamison <br />15883.1 <br />