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Hohne Roberts & Owen LLP <br />Attorneys at Law <br />Chair <br />March 31, 2011 <br />Page 3 <br />requirement of 4.15.10(2) or alternative requirements of <br />4.15.10(3) is demonstrated." <br />Neither the Regulations nor the Colorado Surface Coal Mining Reclamation <br />Act, C.R.S. §§ 34-33-101 to 137 (the "Reclamation Act"), define or otherwise <br />provide guidance as to the meaning of "substantially commenced" or <br />"development of such land use." When read in context with the rest of the <br />Regulations, we believe this rule contemplates developing land to the point at <br />which it is capable of supporting a particular land use, not actual construction <br />or project development. <br />1. Substantially Commenced; Subdivision Efforts. The Carbon <br />Junction Mine is part of a much larger parcel of land owned by OEI, consisting <br />of approximately 1898 acres. Of this 1898 acres, approximately 164 acres is <br />included in the coal permit. Pursuant to state law, OEI has established a 35 <br />acre parcel subdivision on its 1898 acre parcel, including the permitted lands. <br />OEI has planned for infrastructure development and access to the subdivision <br />property, as evidenced by a Letter of Intent entered into with La Plata County, <br />dated January 25, 2010, providing for the construction of connector roads from <br />state highways into the OEI property. OEI has further readied the permit lands <br />for residential land use by building and formal dedication to La Plata County of <br />recreation trails across the subdivision property, including a portion of the <br />permitted lands. OEI spent approximately $110,000 on the development of the <br />subdivision, including approximately $95,000 in engineering and surveying <br />fees, and approximately $14,000 in legal fees. <br />We believe these subdivision efforts alone constitute substantial <br />commencement of the alternative post mining land use under the Regulations, <br />especially in the vibrant community of Durango, which the permitted lands <br />adjoin. The Division has declined to accept OEI's development of the <br />subdivision property as sufficient to satisfy the requirements of the Regulations, <br />and has instead required that OEI obtain building permits and pour five <br />concrete foundations for "residential lodgings" on the permitted lands. We <br />note that OEI's Reclamation Plan allows for residential, industrial, commercial <br />#1524340 v3 den