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n. ~; _rarior, -fc :nation <br />Western Ass •_iated Energy Corporation holds the coal leases on the permit area (see Memorandum of <br />• Lease dated February 10, 1933 in Appendix H). The mineral estate has not been severed from the <br />private surface estate, however, the coal lease dated October 1 ~, 1932, allows the lessee (Western <br />Associated Energy Corporation) as much of the surface as necessary to mine the coal. <br />The legal description of the permit area is as follows: <br />Section 24, TSS, R 92 W, 6°i P.M., Garfield Cottnty, Colorado, more specifically described as <br />follows: <br />Commencing at a point which bears S6°25'08"W, 483' +/- from the NE corner of Section 24, <br />thence south a distance of 905' +l-; thence S89°27'34"E a distance of 2650' +/_; thence south a <br />distance of 475' +/_; thence west a distance of 4160' +/-; thence NS°23'22"E a distance of 2662' <br />+/-; thence S80°04'26"E a distance of 2030' +/- to the point of beginning. <br />The existing underground mine is located approximately 3.5 miles north of Silt, Colorado. Access to <br />the site is via Garfield County Road 237 (Harvey Gap Road). The existing disturbed area is <br />approximately 1500 feet south of the Grass Valley reservoir. The Silt Quadrangle, 7.5 Minute series, <br />contains the area described above. <br />8. Relationship to Areas Designated Unsuitable for Mining <br />The permit area is not within an area designated as unsuitable for surface coal mining operations under <br />Rule 7 or 30 CFR 764 and 765 or under study for designation in an administrative proceeding under <br />Rule 7 or 30 CFR 764 and 765. <br /> <br />Renewal #3 02/08!2000 13 <br />