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the timeline of the approval process and therefore cannot provide a timetable as to when they will <br />be acquired. The areas of section development shown in blue are currently under Federal Coal <br />Lease application and review by the BLM with the exception of the western ends of longwall <br />panels 13, 14, and 15. We do not know when the lease will finally make it through the system. <br />However, we are confident that it will be in sufficient time to allow a permit revision to be <br />processed in a timely manner. <br />We are also waiting on processing of a coal exploration license from the BLM to allow further <br />definition of the extent of the coal reserves near the west end of panels 13, 14, and 15. This <br />information is needed to support obtaining an `emergence/bypass lease' to mine the western end of <br />the panels as shown. If extended delays occur we would end the longwall panel(s) short and <br />proceed with development within the areas which we have appropriate leases, abandoning <br />otherwise economically minable coal reserves. The "emergency/bypass" coal leasing system is a <br />streamlined system to rapidly authorize limited extensions of coal leases to allow extraction of <br />coal which would otherwise become inaccessible and therefore wasted. <br />2. Map 120 has been revised (enclosed) to show our currently projected schedule for mining <br />the longwall panels. Section development will progress with the intention of completing the <br />development of a longwall panel shortly before mining is to commence within that panel. <br />3. Comment noted. <br />4. Comment noted. <br />If you have any further questions please contact me at 970-675-4322. <br />Sincerely, <br />Scott Wanstedt <br />Environmental Engineer <br />swanstedt@deserado.com <br />enc: <br />cc: Jeff Dubbert <br />Paul Daggett - BLM