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Y1/ M/N',ING INC. December ] x,1998 Nlr. Allen Belt, Homage: Uncompahgre Basin Resotrrti,; Area Bureau of Land Mananemen:: 2505 South Townsend Montrose, Coiprado 81401 Mr. Rnbert L. Storch, Forest Supervisor Grand Mesa-Uncompahgre-~:nmmson Natioeal Foust 2250 Highway 50 Delta, CO 81416 Ra: Elk Cre"litTrad Coal ].xssing Eavitonmea#a] Assessmen#- Oxbow Mtning, inc. No Additional Impact Dear Mr. Belt and Mr. Storclr: In order to address some misuad~^~++ngs and the concerns expresse3 in the Public Comment Me_-ung on the ELti Creek 'Tract Coal Lraaing F*+~*r+~+n+P^tal Assessment and the subsequent questions discussed ze3ardial; cumulative impact considerazians, we wooled w take this oppartndty to apprise you of the following key paints regarding the pateatial effects of leasing the Elk Creek Traci. Oxbow has been involved in the Sanborn Cn,lc Mme since ] 991. As of today, Oxhaw employs 177 people and ptpduces apprpx=•natt:ly 4.0 ~ tote per year ofhigh-•gtraiity Colorado coal. Ors recent irtstal]aIIon of a slate-of-the•tat ]annrell tnIItlDp syStYm and ptIr ctnre~ prvductioa level of 4.0 IvTtii 1 tons per year have been subject to numerous, detailed studies, permits and approvals. Due to the many steps regtzL ~ between lease awed and achral +*+in~, the speedy conclusion of the Ells Crept Trac! leasing process is imperaDve if Oxbpw•s mining operations are to remain open past the Hatt five years. Delays r'.ue to the ptepatatipa of an II5 at this stage would no# allow for timely development, and would pat one hundred seventy seven jobs at the mine in jeopazdy. Based on current projecdpns of saves and rates of production, we expect that the current reserve at Oxbow's operations will Itistain eaniinvc~ mining activities for appmxirnarely five years. After that point, without secutin.~ additional mining rigftrs, Oxbow's mining operations will become untcoaomical to operate and wt71 be forced to close. Our recent proposal to lease the Elk Creek Tract is based on mining that coal after current reserves are depleted, allowing the mine to wrmnue operations beyond 2008. Although Oxbow's prcposal to lezse the EAc Creek 7rrel: wtll not prpvidr arty >rc-rase in tainr praducr;an, ii will have ;he effect of prolonging mining ppertuioffi to the benefit of all parties. 7 9 0 t S a u t h P a r k P l: z i S u i[ e 2 0 2 L i t ~ l e t o n C o l o r a d o . 9 0 1 2 0 U S P TEL (3 0 3] 7 9 5. 0 1 1 7 ~ i P X (3 0 3 J 7 9 9 t 5 2 a 9!/O! d £oZd£d!9S£'ON,%9£~6l LS/£S 6! co,Sd 10;~iCH1 lY~l1Y C~C~~~ Ti~"~~~V~ U(~1~~'~ 11VC_