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RECEI!/ED <br />JUL 0 3 2002 <br />Division of Minerals end ~aolopy <br />CO-933 <br />3483 <br />C-22777 <br />JUL ~ 2002 <br />Certified Mail -Return ReceiRt Requested <br />Rich A. Munson <br />Executive Vice President <br />Kerr Coal Company <br />385 Inverness Drive South, Suite 200 <br />Englewood, CO 80112 <br />DECISION <br />Sins ension of Operations and Production Expired <br />New Dates Established for Readjustment and Continued Operation Yeaz <br />On June 19, 2001, we granted a 14-month extension to the suspension of operations and <br />production on coal lease C-22777, which we originally granted for 5 years effective Apri124, <br />1996. Suspensions of operations and production are authorized by section 39 of the Mineral <br />Leasing Act of 1920 (ML,A), as amended, and the implementing regulations at 43 CFR 3483.3. <br />In the past year, the mine has not reopened nor has Kerr submitted any evidence of sales <br />contracts. In accordance with stipulations 4 and 5 of our decision dated June 19, 2001, your <br />suspension of operations and production expired effective June 24, 2002. <br />The effects of the suspension on the lease are: <br />1. Readjustment Date. Because a section 39 suspension of operations and production <br />suspends the beneficial use of a lease, the terms and conditions of the lease are extended by the <br />duration of the suspension. The term of the lease is extended by the suspension period of 6 <br />years and 2 months. The lease would normally have been readjusted on July 1, 2000, but <br />because of the suspension, the next readjustment of the lease terms and conditions will <br />