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L' • i III IIIIIIIIIIIII III Mountain Coal Company West Elk Mirts Poet Offiea Box 591 Somanst, Colorado 91434 Talephons 970 929-5015 Fex 970 829-5595 ~' August 12, 1996 Larry and Elaine Mauu 1938 ffighway 133 Paonia, CO 81428 Dear Mr. & Mrs. Mautz: oc f ,EIV t~ ~G 16 1996 owlslen d+ Mmelais ~ l~eoiogY We have had several discussions over the past week, both in person and by phone, regarding recent surface disturbances (mostly cracks and 5ssures) that have caused some damage to portions of a road on your property on Jumbo Mountain. Because it is possible that the disturbances were caused by subsidence due to mining, our discussions have focused on what obligations Mountain Coal Company ("MCC") may have. In a phone conversation on Friday, August 9, Elaine requested that MCC again write down what it intends to do with regard to the surface land disturbances and with regard to damages to your cabin, hence this letter. 1. Surface Land Disturbances As we have told you, both orally and in writing (see my letter to you dated July 26, I996), MCC believes its only obligation with regard to the recent surface disturbances is to repair the road. Both the Colorado mining regulations and the Final Rule of the Office of Surface Muting ("OSM") require that a "permittee" correct any "material damage" resulting from subsidence[ caused to surface lands "to the extent technologically and economically feazible." In particular, the permittee must restore the land to a condition "capable of maintaining the value and reazonably foreseeable uses" it was capable of before subsidence. The Final Rule of OSM, to which you have made reference, defines "material damage" az including "functional impairment of surface lands," physical changes that have a "significant impact" on the land's capability to "support any current or reasonably foreseeable uses," or causing "significant loss in production or income." Assuming, without admitting or agreeing, that the Final Rule of OSM applies in Colorado, we believe that the only "material damage" to your property that may have been caused by subsidence, if any, is the damage to your road. Even az such, the land does and will continue to support all current (i.e., the hunting and roundup activities) and reasonably foreseeable uses and you should suffer no loss of income. I It is decidedly unclear whether the new cracks and fissures on Jumbo Mountain are the result of subsidence. There is obvious visual eviden« in the area of significant historic cracking and landslide activity that prc~ates any mining. Studies oC the area before mining in this arcs occurred identified this region as a naturally unstable land slide area. ,