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NATIONAL KING COAL, LLC III IIIIIIIIIIIII III <br />~o~ <br />October 12, 1999 <br />Telephone: <br />(970) 385-529 <br />Fex: <br />(970) 395-1839 <br />RECEIVE' <br />State of Colorado <br />Division of Minerals and Geology ocr 1 8 ~sss <br />11313 Sherman Street <br />Room 215 OryisionofMirreralsBG~iogy <br />Denver, Colorado 80203-2273 <br />Attention: Harry Ranney, Reclamation Specialist <br />Re: Third Quarter 1999 Surface Subsidence Inspection <br />Third Quarter 1999 Huntington Ditch Inspection <br />Dear Harry: <br />There are no new cracks over Sections No. 2, 3 6 4 Right as of <br />this inspection. Old subsidence cracks in this area have <br />• "healed" well and are now nearly imperceptible. <br />Mining has been completed beneath the Dunn/Ute Mountain Ute Tribe <br />Lease. OSM has been checking, measuring, photographing and <br />mapping these cracks on a monthly basis. These cracks look much <br />like the cracks which are not under OSM jurisdiction. <br />The other areas where pillars have recently been extracted are <br />Sections No. 9 West, 7 South, 6 South and 5 South/1 Left. The 7 <br />South and 6 South area exhibits normal subsidence tension cracks <br />extending north from a point about 300 feet south of the <br />Huntington Ditch. This area of the ditch has been replaced with <br />a buried pipeline. Some cracks appear to have crossed the <br />pipeline with no apparent consequences. The landowner is <br />monitoring the situation closely. <br />Call if you have any questions. <br />Sincerely, <br />Tom Bird <br />Planning & Engineering <br />National King Coal, LLC <br />DURANOO OFFICE: <br />1376 Main Avsnus, Suile 374 MINE LOCATION: <br />Post Olllcs Box 2905 ~12~ County Roatl 720 <br />Durango. Colorado 81302 Heeperue. Colorado 91328 <br />Telephone: <br />(970) 259.216 <br />Fex: <br />(970) 259-1918 <br />• <br />