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iii iiiiiiiiniii iii <br />999 <br />-_ Q~ <br />c~® <br />~~~. <br />Certified Mail -Return Receipt Requested <br />DECISION <br />In Reply Refer To: <br />CO-923 <br />3483 <br />C-01538 <br />JAN 141992 <br />Mr. Larry H. Fox, President ,~ . <br />Powderhorn Properties Company, Lessee ~.~~~L'ry~ <br />Powderhorn Coal Company, Sublessee "° N .% (~ ~T, <br />~o Powder River Coal Company <br />Caller Box 3034 SAN 2 3 ~gg~ <br />Gillette, Wyoming 82716 4a~r Mi~edCan <br />Su~ension of Operations and Production Granted ~maftoR n' d • <br />On November 8, 1991, Powderhorn Properties Company and Powderhorn Coal Company <br />~~ applied for a suspension of operations and production on coal lease C-01538, pursuant to <br />section 39 of the Mineral Leasing Act of 1920, as amended (MLA), and the <br />implementing regulations at 43 CFR 3483.3. <br />The Cameo No. 1 Mine began production in 1979 and operated until mid-1982 when the <br />mine was idled due to mazket conditions. The December 1, 1981, modification of <br />C-01538 determined the start of the 10-year diligent development period. Approximately <br />6,600 tons of coal was produced from the lease during the diligent development period, <br />not enough to prevent the lease from terminating effective December 1, 1991. <br />Powderhorn argues that a suspension will maximize the ultimate recovery of federal coal <br />resources, minimize the potential waste or loss of the leased resources, and minimize <br />damage to other natural resources. A Logical Mining Unit combining the Cameo and <br />Roadside Mines is not currently a feasible alternative. <br />The lease is presently accessed from underground mine workings of the Cameo No. 1 <br />Mine. The portal and all surface facilities are on adjacent private lands controlled by <br />Powderhorn. Our analysis determined that preservation of the present access to C-01538 <br />is in the interest of conservation for the following reasons: <br />1. At least 90 percent of the recoverable reserves of the mine are within the lease. If <br />C-01538 is terminated. Powderhorn would not have enough reserves to justify continued <br />maintenance of the development entries and would abandon the mine. Once the entries <br />are allowed to flood. caving will effectively cut off the onh~ reasonable access to portions <br />of C-0138. <br />