Laserfiche WebLink
<br />~Q4MENT OF J~P <br />y~ United States .Department of the Interior <br />~ ' BUREAU OF LAND MANAGEMENT <br />~, . -,9 ~ Colorado State Office <br />"ao"' ~0 2850 Youngfield Street <br />IN REPLY REFER TO: La1C0WOOd, Colorado 80215-7093 <br />CO-921 <br />COC 61209 <br />3485 <br />o~~ °~ ~ <br />The Honorable Bill Owens <br />Governor of Colorado <br />136 State Capitol <br />Denver, Colorado 80203-1792 <br />Dear Governor Owens: <br /> <br /> <br />www.co.blm.~ov <br />We aze processing an application for a royalty rate reduction for coal lease COC 61209, part of <br />the Bowie #2 Mine, from Bowie Resources, Ltd. Bowie has applied for a royalty rate reduction <br />from 8 to 5 percent based on adverse geologic and engineering conditions. Development of <br />Panel D-6 encountered two faults with displacement of 3 to 13 feet n,T,ning roughly parallel to <br />the panel, three areas of hydtothermally coked and weakened coal associated with one of the <br />faults and an underlying igneous intrusion, and two zones of kettle bottoms. In order to mine the <br />D-6 panel, Bowie purchased rock drtuns for the longwall sheazer, purchased pumps and <br />equipment to inject polyurethane grout in azeas of unstable face and roof, and greatly increased <br />the amount of roof support in the gate roads. <br />We aze proposing to approve the royalty rate reduction for up to 1,900,000 tons in Panel D-6. <br />We estimate that the effect of the royalty reduction will be a decrease of $997,500 in royalties <br />($498,750 reduction to the State of Colorado). Bowie began mining Panel D-6 earlier this yeaz <br />and is scheduled to complete the panel in the next three weeks. We would appreciate your <br />comments by November 8, 2002. If you have any questions, please contact me at <br />(303)239-3773. - <br />,.~ -- __ <br />r .. <br />,~~ , <br />Sincerely, 't <br />J es E. Edwazds, Jr. <br />cling Deputy State Director <br />Resource Services <br />Attachment <br />cc: Ron Cattany <br />