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STATE OF COLOFADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />January 4, 2008 <br />Ronald G. Thompson <br />Peak Project Management <br />34115 County Road 20.8 <br />Trinidad, CO 81082 <br />Svp???0 <br />COLORADO <br />D I V I S I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronald W. Cattany <br />3 I.tf Cf S e ( (? Division Director <br />r p )??pJLI ?nOY(/ Natural Resource Trustee <br />Re: Right of Entry <br />&`??Y ?UUn SV ?l v"r <br />Transfer of Permit (SO-01) <br />Lorencito Canyon Mine (Permit No. C-1996-084)o?, C? <br />Dear Mr. Thompson: <br />The Division recently received evidence from MGP Enterprises, the mineral owner at Lorencito <br />Canyon, that the lease agreement between MGP and Lorencito Coal Company was terminated on <br />July 1, 2005 (see enclosed). Rule 2.03.6(1) of the Regulations of the Colorado Mined Land <br />Reclamation Board and Colorado Revised Statue 33-34-110(2)0) require that an applicant identify <br />the documents upon which a permittee bases their legal right to enter and begin surface coal <br />mining operations. <br />Please describe and identify the documents that give Lorencito Coal Company or their <br />representatives the right to enter surface lands within the permit boundary. <br />Please provide a written response, including any supporting documents if necessary, as soon as <br />possible. <br />In addition, the pending transfer application to the successor permittee, New Elk Coal Company, <br />LLC remains outstanding at this time due to the lack of submittal and Division acceptance of a <br />replacement reclamation bond. The Division requests that the transfer application be withdrawn if <br />the transfer cannot be completed by January 11, 2008. If it is not completed or withdrawn by that <br />date, the Division will deny the application. Of course, you may re-submit the application in the <br />future, should you so desire. <br />If you have any questions, please call me. <br />Sincerely, <br />K64 A. Gorham <br />Environmental Protection Specialist II <br />Office of Office of <br />Mined Land Reclamation Denver - Grand Junction - Durango Active and Inactive Mines