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III IIIIIIIIIIIIIIII <br />999 <br />STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />131 3 Sherman 61., Room ? I S <br />Denver, Colorado 80?03 <br />Phone: 13031 8663567 <br />FAX: 1303) 83?8706 <br />May 4, 2000 <br />Mr. Michael J. Van Wagenen <br />Attorney at Law <br />P.O. Box 26421 <br />Salt Lake City, UT 84126 <br />Re: Lorencito Coal Co., LLC <br />Picketwire Processing Company, LLC <br />Dear Mr. Van Wagenen: <br />DIVISION OF <br />MINERALS <br />GEOLOGY <br />REC LAMA710N <br />MINING•SAFETY <br />Bil I Owens <br />Governor <br />Greg E Walther <br />Executive D~recmr <br />ronchaelB Lang <br />Drvivon Direunr <br />This letter is written in response to your correspondence of February l7, 2000 and as a follow-up to <br />our meeting of yesterday. Your questions as posed in your February letter are reiterated below, <br />with responses following each question. <br />Inquiry #1 -The three year permitting period for Lorencito will conclude sometime this fall. Is it <br />possible [o extend it for an indeterminate period of time without commencing operations? Ifthe <br />permit can't be extended, how difficult is it to let the permit expire and then resubmit the permit <br />application in future years when the coal market justifies opening the mine? <br />DMG Response -The commencement period can be extended in accordance with Rule 2.01.5(2). <br />This rule reads as follows: <br />Rule 2.01.5 (2) (a) A permit shall terminate if the permittee has not commenced the <br />surface coal mining and reclamation operations covered by the permit <br />within three years of the date of the issuance of the permit. <br />(b) The Division or Board may grant reasonable extensions of time for <br />commencement of these operations, upon receipt of a written <br />statement showing that such extensions of time are necessary, if: <br />(i) Litigation precludes commencement or threatens substantial <br />economic loss to the permittee, or <br />(ii) There are conditions beyond the control of and without the fault <br />or negligence of the perrnittee. <br />