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NATIONAL KINO COAL, LLC <br />n <br />G70 <br />September 15, 2000 <br />~~i~u~~tiii~~~~i~~ <br />DURANOO OFFICE. <br />1315 Mein Avenuo, Suite 3t1 <br />Poet Ollloe Box 2905 <br />Durenpo, Colorado 81302 <br />Telephone: <br />(870) 250-2118 <br />Fax; <br />(870) 258-1818 <br />MINE LOCATION: <br />1421 County Roetl 120 <br />Hesperus. Colorado Bt32B <br />Telephone: <br />(970) 386-1528 <br />Fex: <br />(970) 385-1838 <br />State of Colorado <br />Division of Minerals and Geology <br />11313 Sherman Street RECE~~ED <br />Room 215 <br />Denver, Colorado 80203-2273 SEP 21 2000 <br />Attention: Harry Ranney, Reclamation Specialist ~ivisiono(Minera(s a ~eo1o9Y <br />Re: Second Quarter 2000 Surface Subsidence Inspection <br />Second Quarter 2000 Huntington Ditch Inspection <br />Dear Harry: <br />There are no new cracks over Sections No. 2, 3 & 4 Right as of this inspection. Old <br />subsidence cracks in this area have "healed" well and are now nearly imperceptible. <br />Mining has been completed beneath the Dunn/Ute Mountain Ute Tribe Lease. OSM has <br />been checking, measuring, photographing and mapping these cracks on a quarterly basis. <br />These cracks look much like the cracks which are not under OSM jurisdiction. As per <br />OSM suggestion, we repaired two cracks which intersected atwo-track road paralleling the <br />east-west fence on the south side of the property. <br />The other areas where pillars have been extracted are Sections No. 4 West, 7 South, 6 <br />South and 5 South/1 Left. The 7 South and 6 South area exhibits normal subsidence <br />tension cracks extending north from a point about 300 feet south of the Huntington Ditch. <br />This area of the ditch has been replaced with a buried pipeline. Some cracks appear to <br />have crossed the pipeline with no apparent consequences. The landowner is monitoring <br />the situation closely. <br />Call if you have an questions. <br />Sinc~ <br />Tom Bird <br />Planning & Engineering <br />National King Coal, LLC <br />