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<br />4.08 Use of Explosives, (continued) <br />• of the Pensit Area. <br />Under item (b) a low pressure natural gas transwission <br />line crosses the northern portion of the Phase Ons pit area, <br />and the limitation of blasting within 500 feet of the pipe line <br />wipes out approximately 50+k of the intended operation. The <br />pipe line was constructed in 1963 by Raton Natural Gas Company <br />under a License Agreement with the property owner, which at the <br />time was the Colorado Fuel and Iron Corporation. A copy of the <br />License Agreement is shown with land ownership deeds under <br />Exhibit A. Of special interest in the License Agreement is the <br />section dealing with termination and this reads as follows: <br />9. In the event the Corporation, its successors or <br />assigns, should desire to occupy or use or permit the occupancy <br />• or use of the lands which are subject to the license herein <br />granted or any portion thereof for any purpose with which the <br />afioresaid pipe lines and oither appurtenances would interfere, <br />then the Corporation may terminate the license herein granted <br />and all rights and interests of the Gas Company under thls <br />Agreement upon giving the Gas Company ninety (90) days written <br />notice of such desire. Within such ninety (90) day period, the <br />Gas Company shall remove or relocate at its own expense said <br />pipe line or other appurtenances as specified in sucn notice. <br />In subsequent discussions with personnel of the MLRD the <br />Company was told some waiver to the 500 foot restriction could <br />apply if it was proven the pipe line could be adequately <br />protected against blasting closer than 500 feet. <br />Faced with moving the pipe line away fro. the pit area or <br />paying for lost mining profits the Gas Company hired the <br />consulting engineering fire of Greg Lewicki and Associates, 1645 <br />Court Place, Suite 309, Denver, Colorado 80202 to dstsr~ins how <br />• 2 <br />