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MAR -02 -1999 16:14 ROBERT DELANEY <br />TELEPHONE <br />AREA CODE 970 <br />45.7148 <br />Mr. Kevin Riordan <br />District Ranger <br />Souris District <br />White River National Forest <br />P. 0. Box 309 <br />Carbondale, CO 81623 <br />Dear Kevin: <br />following: <br />OP•IC:E OF GENERAL COUNSEL <br />MID- CONTINENT RESOURCES, INC. <br />P.O. BOX 2L15 <br />1001 GRAND AVENtIF SUITE lo(. <br />GLENWOOD SPRINGS, COLORADO H1602 <br />March 2, 1999 <br />970 945 2303 F.02 <br />We understand that the Forest Service (USFS) has a <br />continuing interest in acquiring the remaining 262 acres of the <br />Prep Plant tract in Coal Basin by exchange, following the same <br />procedures that have been used in the previous approximately <br />6,000 acre transfers. This program was suspended because of <br />concerns about reclamation responsibility. <br />Negotiations have been initiated to settle the lawsuit <br />pending in the Pitkin County District Court, Civil Action No. <br />97CV131 -1, in a manner that will alleviate further concern about <br />reclamation and environmental problems within Coal Basin <br />attributable to the Mid - Continent Resources mining operation. <br />Acquisition of the property by the Forest Service is the <br />preferred alternative expressed by all parties to the lawsuit. <br />To facilitate the USFS acquisition, we propose the <br />A plan to complete reclamation during the working <br />season of 1999 will be prepared and submitted to the Forest <br />Service for review designed to make the property acceptable for <br />acquisition by USFS. <br />In view of the fact that we do not know whether USFS <br />will acquire the property or not, it will be assumed that the <br />property will remain an inholding and accordingly that the lamp <br />house, power lines, roads, metal building at the Prep Plant site, <br />including stream crossings will remain in place until Forest <br />Service acquisition. <br />FAX <br />AklACOM070 <br />94i.Zici <br />