2002-05-13_PERMIT FILE - C1981041 ‎(8)‎

• Permit No: C1981041
• IBM Index Class Name: Permit File
• Doc Date: 5/13/2002
• Doc Name: TransColorado Gas Transmillsion Company Agreement
• Section_Exhibit Name: Tab 20 Appendix 20-9
• Media Type: D
• Archive: No

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' ~ Cjna ]'ennamiasion Company
June 30, 1998
Powderhom Coal Company
P. O. Box 1430
Palisade, CO 81526
Gentlemen:
TransColorado Gas Transmission Company (TransColorado) has been issued right-of--way
• grant No. COC-51280 by the United States Bureau of Land Management across public lands for a
natural gas transmission line. The route selected for the line will cross lands on which Powderhom
Properties Company holds federal coal lease number 01538.
The natural gas transmission line will cross within the coal lease area in Section 18,
Township 1 l South, Range 97 West, Sixth Principal Meridian, Mesa County, Colorado
The right-of -way grant to be issued to TransColorado will contain a stipulation that will
provide that the existence of the gas transmission line shall not prevent the mining of any coal under
the leases. The Colorado surface Coal Mining Reclamation Act prevents mining operation from
disturbing surface facilities.
TransColorado acknowledges that its rights will be subject to the above right-of--way
stipulation in favor of mining activities under Powderhom's coal leases and agrees to analyze the
impact of the mining activities on its gas transmission pipeline and, if necessary, relocate the line
if it is determined that it will interfere with mine operations under said line. The cost of relocation,
if deemed necessary, shall be borne by TransColorado.
Powderhorn agrees to give TransColorado six (6) months notice of its intention to begin
mining activities in the area crossed by the gas transmission line and assist TransColorado in
• determining a satisfactory alternate location for the transmission line. TransColorado agrees to let
Powderhom set up a subsidence monitoring and control program of the transmission line and will
assist Powderhom in developing a plan to prevent subsidence to the transmission line.

This letter is intended to record our agreement regarding the relocation of the gas
transmission line to allow for all coal to be removed from the lands covered by the Bureau of Land
Management right-of--way grant.
Meiling Address: Phone [phone] Street Address:
PO Box 45360 Phone [phone] Eest 100 South
Salt Lake Ciry, UT 84145-0360 FAX [phone] Sel[ lake Ciry, UT 84111
AJoint Venture olSu6sidiariea al K N Energy, Inc, antl Our:srar Pipeline Company