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,CIF 1 11'. <br />POWDERHORN PROPERTIES COMPANY ~~~~~ , <br />APPLICATION FOR LEASE SUSPENSION •87 q~ 2~ ~)O;~O <br />Lessee: Powderhorn Properties Company <br />P.O. Box 1430 <br />Palisade, Colorado 81526 <br />Sublessee: Powderhorn Coal Company <br />P,O. Box 1430 <br />Palisade, Colorado 81526 <br />TYPE OF SUSPENSION REQUESTED: <br />Suspension of operations and production in the <br />interest of conservation under Section 39 of the <br />Mineral Leasing Act ("MLA"). <br />FEDERAL COAL LEASE N0: <br />C-078049 ("Lease") <br />SUPPORTING INFORMATION: <br />Powderhorn Coal Company ("Powderhorn") is the operator of <br />the Roadside and Cameo No. 1 Mines in Mesa County, Colorado <br />("Mines"). Because of current market conditions, it is not <br />economically feasible to mine and sell coal from the Mines at <br />this time; as a result both Mines have been idled. No produc- <br />tion has occurred from the Cameo No. 1 Mine since early 1982 <br />and the Roadside Mine has been idle since October 3, 1986 when <br />its only coal supply agreement was terminated. As a result, <br />except for a minimal quantity of coal sales from an existing <br />stockpile, no coal has been produced and sold from the Mines <br />since October 1986. Thus, although we are optimistic that we <br />will secure new customers for Powderhorn coal, it is not <br />possible for us at this time to predict with any accuracy when <br />the Mines will operate again. <br />