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;_ <br />//~ Kennecott <br />®~ Energy <br />Cv ~aa~y~o/ <br />Colovryo Coal Mine <br />5731 State Highway 13 <br />Meeker. ColoraUO 81611 <br />Telephone: (970) 824-1532 <br />Fax: (970)82-0-t 59E <br />C. Crellin Scott <br />Sr. Environmental Engineer <br />August 18, 2004 <br />Ms. Karen Zurek <br />Bureau of Land Management <br />Colorado State Office <br />2850 Youngfield St. <br />Lakewood, Colorado 80215 <br />RE~E~~fE® <br />Nov ~ o zooa <br />Division of Minerals ;,nJ 6ealaw <br />RE: Request for a Lease Modification for Federal Coal Lease D-034365 for Colowyo Coal Company <br />Dear Ms. Zurek: <br />Colowyo Coal Company requests a modification to Federal Coal Lease D-034365 under the terms and conditions of 43 CFR, <br />Chapter II, Subpart 3432 -Lease Modification. Colowyo Coal Company presently holds this lease and would like to expand the <br />lease to include an adjacent azea not presently under (ease. Granting the ]ease modification will allow up to 224,195 additional tons <br />to be recovered with the existing operation. <br />The proposed lease modification adds 13.77 Acres in the existing Federal Coal Lease D-034365. Colowyo Coal Company owns the <br />surface and Bureau of Land Management administers the coal reserves in the proposed lease modification area. <br />The advantage of leasing these additional acres is to ensure maximum recovery of available tonnage with the existing operations in <br />that area. It is very unlikely that another company would be able to economically mine the same coal. Due to our close proximity <br />and access already established, Colowyo has the proper equipment and personnel to recover the tonnage in an efficient and effective <br />manner through truck/shovel and highwall mining operations. <br />The two coal seams C and D are targeted for coa] extraction in an adjacent ridge to the West Pit area. (See Drawing No. 1) The <br />proposed lease modification also falls within the existing permit boundary as established with the State of Colorado <br />Please find enclosed a map illustrating the area of interest and the additiona] acreage requested. Across section of the coal seams <br />and the respective volumes has been provided, along with a description of how we calculated our tonnages and Colowyo's proposed <br />methods of mining. In addition we have submitted a new legal description to include the new lease area. <br />If you have any questions regarding this information please call me at your earliest convenience. <br />Sincerely, <br />~~ <br />C. CrellinScott <br />Sr. Environmental Engineer <br />Cc: File <br />Bob Young <br />Tonia Folks <br />Dick Turpin <br />Byron Walker <br />Antelope AAine • Colowyo Mine • Cordero Rojo Mine • Jacobs Ranch Mine • Spring Creek Mine <br />A memb_s of tine Ric Pinto Group <br />