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~PQSMENT OF Tj~'y un~vEw,xn~ertoFwrmaa <br />a p United States Department of the Interior <br />' ' BUREAU OF LAND MANAGEMENT <br />Colorado State Office <br />~4RCH 3 109 . <br />2850Youngfield Stree[ n t <br />IN REPLY REFER TO: LakeWOOd, COlorad0 80215-7093 WWw.CO.blm.eov <br />CO-921 <br />COC 61209 <br />3485 <br />3 ~,p2 <br />~CZ 0 <br />The Honorable Bill Owens <br />Governor of Colorado <br />136 State Capitol <br />Denver, Colorado 80203-1792 <br />Deaz Governor Owens: <br />We aze processing an application for a royalty rate reduction for coat lease COC 61209, part of <br />the Bowie #2 Mine, from Bowie Resources, Ltd. Bowie has applied for a royalty rate reduction <br />from 8 to 5 percent based on adverse geologic and engineering conditions. Development of <br />Panel D-6 encountered two faults with displacement of 3 to 13 feet n,nn;ng roughly pazallel to <br />the panel, three azeas of hydrothermally coked and weakened coal associated with one of the <br />faults and an underlying igneous intrusion, and two zones of kettle bottoms. In order to mine the <br />D-6 panel, Bowie purchased rock drums for the longwall shearer, purchased pumps and <br />equipment to inject polyurethane grout in areas of unstable face and roof, and greatly increased <br />the amount of roof support in the gate roads. <br />We are proposing to approve the royalty rate reduction for up to 1,900,000 tons in Panel D-6. <br />We estimate that the effect of the royalty reduction will be a decrease of $997,500 in royalties <br />($498,750 reduction to the State of Colorado). Bowie began mining Panel D-6 earlier this yeaz <br />and is scheduled to complete the panel in the next three weeks. We would appreciate your <br />comments by November 8, 2002. If you have any questions, please contact me at <br />(303) 239-3773. - " _ <br />~~ - - <br />,- .. - <br />.s <br />Sincerely, ~ - <br />J , es E. Edwazds, Jr. <br />Acting Deputy State Director <br />Resource Services <br />Attachment <br />cc: Ron Cattany <br />