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~•~, ~~, ~~~ ~_ III IIIIIIIIIIIII III <br />O X B O W ~P/O W E R 0 0 R P 0 R A T t U} <br />~~~~ ~ ~ <br />~~ <br />January 25, 1999 ~' <br />~. <br />i <br />I / <br />Mr. Ron Cattany ~ <br />Deputy Director <br />Colorado Deparnnent of Nanu:,l Resources <br />1313 Sherman 5t.. <br />Denver, CO 80203 <br />Dcaz Mr. Cattany, <br />Thanks very much for Hiking time to speak with me last week; I look forward to seeing <br />you on February 1. As you knt,w, Oxbow Mining Inc. is the owner and operator of Sanborn <br />Creek, a sizable coal mine in Gunnison County. We've been active in the coal business there for <br />about a decade and were recently presented the 1996 Mined Land Reclamation Award in the <br />Large Underground Mine cater?pry by DNR A brief overview of Oxbow is included in the <br />attached fact sheets. <br />As we discussed, Oxba~u is involved with an ongoing regulatory process related to <br />obtaining federal leases for continued coal mitung. In order to provide our customers (mostly <br />]arge utilities in the mid-west that prefer the high quality Colorado coal we can supply) with an <br />uninterrupted supply, we aze ar.:empting to lease a tract of government-owned land (the Elk <br />Creek Tract) adjacent to our existing coal mining operations. Details abeut the process are alse <br />included in the attached fact sh~:ets. <br />Our current issue involves the schedule for the EIS that I mentioned to you last week. <br />Although we disagree that an EIS is required for Oxbow's lease, we have accepted, givrn the <br />current situation, that moving f~rwazd quickly with an E1S is the best way to ensure the viability <br />of our Colorado operations. <br />We are clear that the supstance of the EIS will be driven by the facts and are happy to <br />have our operations and plans c azefully scrutinized. However, we also recognize that the EIS <br />process and schedule will also :mpact significantly on future viability from the perspective of <br />both customers, as well as jobs The result of a lengthy, drawn-out leasing process is a high <br />likelihood that there will be significant, adverse economic impact on our operations and <br />consequently much of the Nor-_i Fork V alley region. <br />IaW F...... %nr,, ~.ir Ia40 <br />V , Rd.. A.~.h, f!. 3J un <br />TA.phen~ S11/a9711W /is aal/n1UlIM1I' <br />9l/£ c £6dZ£Zl9S£'ON/9£~£l'!S/0.'•£l 66 ,.7 'l6(YOW) NOi~yFiOd`d0~ &?MO? 1!0£0 11G£? <br />