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Snell ~ Wilmer <br />L.L.P. <br />LAW OFFICES <br />1200 Seventttnth Street, Suite 1950 <br />Tabor Center <br />Denver, Colorado 80202 <br />(303)634-2000 <br />Fax: (303)634-2020 <br />www.swlaw.com <br />Robert D. Comer <br />303-634-2015 <br />rcomer@swlaw.com <br />iiiiiiiiiiiiiiuiii <br />999 <br />rxoexlx, AuzoxA <br />RECEIVED <br />TUCSON. ARIZONA <br />MAR 0 9 2001 <br />Dlvlslon of Mlnerels end GEOlogy <br />March 9, 2001 <br />VIA HAND DELIVERY AND FACSIMILE TRANSMISSION <br />Cheryl A. Linden, Esq. <br />Robert D. Clazk, Esq. <br />Office of the Attorney General <br />1525 Sherman Street, 5th Floor <br />Denver, CO 80203 <br />Re: Fourth Fortnightly Report, NOV # CV-2000-010 <br />S&W File No. 38283.0001 <br />Deaz Cheryl and Bob: <br />IRVINE. CALIFORNIA <br />DEN VER, COLORADO <br />sntr LAxe urv. urax <br />Fax: 303-866-3558 <br />Fax: 303-866-5671 <br />This letter constitutes Powderhom's fourth and final Fortnightly Report pursuant to your <br />letter of January 12, 2001. Powderhom appreciates the willingness exhibited by the Colorado <br />Division of Minerals and Geology (DMG) and the Colorado Attomey General to work with <br />Powderhor in seeking to resolve the financial assurance issue created by the federal delisting of <br />Frontier Insurance Company ("Frontier"). <br />The report contains three parts as identified in your letter. Part I identifies the efforts <br />taken by Powderhom during the period between February 23 and Mazch 9, 2001, to obtain a <br />replacement bond. Part II identifies the steps taken by Powderhom during this period to have <br />Frontier obtain or provide an alternative form of financial assurance. Part III identifies other <br />activities undertaken by Powderhom during this period to resolve this matter. <br />Part I. Efforts To Obtain A New Bond <br />During the intervening period, Powderhor again contacted Mr. Pete Gibson (Acordia). <br />He indicated that the surety market continues to remain very tight and that surety availability is <br />very limited for any medium-sized company regardless of credit capability. Apparently, very <br />few companies are willing to write mining surety bonds at the present time. It is Mr. Gibson's <br />Member: LEX MUNDI, a global assoclatlon of Sntlepentlent law <br />firms with members In the Unltetl Slates antl 60 count rles <br />throughout the Norltl. <br />