_GENERAL DOCUMENTS - C1981017 (219)

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Mid-Continent Resources, Inc. PRODUCERS OF THE FAMOUS COAL BASIN COKING COAL MID-CONTIXENT RESOURCES,INC. 201 Centennial Street 625 I'L:1I\FIELD ROAD-SUITE 220 Suite 406 Telephone: WILLOWBROOK,ILLINOIS 60521 Glenwood Springs, Colorado 81601 (303)945-4958 June 12, 1989 J: James C. Stevens a�Jg Senior Reclamation Specialist Mined Land Reclamation Division 215 Centennial Bldg. 1313 Sherman St. Denver, CO 80203-2273 Dear Mr. Stevens: RE: Tunnel Ponds - Construction Schedule You mentioned a possible issue concerning the reference in the Operations Description of our permit application, submitted December 2, 1987, to the sentence: Construction of the additional ponds, D& E, is scheduled for 1988. Mid-Continent did riot, and does not, interpret that reference as a binding commitment to construction of the ponds during 1988. The permit application was under review throughout 1988, and was not approved until January of 1989, some months after the 1988 construction season had ended, precluding pond construction. MLRD specifically recognized in approving the permit that the ponds had not been built during 1988. The Findings Document concerning Permit Renewal, issued December 5, 1988 said (page 3): Several other ponds have been approved to be constructed. Two have been approved at the tunnel refuse area to allow for additional settling of mine discharge water from the rock tunnel area. These two ponds may not be needed as an alternative cyclone methodology is currently being implemented to remove the total suspended solids load of the mine discharge. The schedule contemplated during 1987 had been changed during 1988, in the course of the MLRD review of our permit application, for two reasons: - Mid-Continent discussed with MLRD the possibility of using an alternate technology, namely the cyclone de-sander, rather than construction of the ponds.