GENERAL46207

• Permit No: C1980006
• IBM Index Class Name: General Documents
• Doc Date: 4/15/1981
• From: KERR COAL CO
• To: GOVERNOR OF THE STATE OF CO
• Permit Index Doc Type: GENERAL CORRESPONDENCE
• Media Type: D
• Archive: No

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suite 900•three park central•t5t5 arapahoe•tlenver, coloraoo 80202 •(3031 fi23~8317
April 15, 1981
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The Honorable Richard D. Lamm
Governor of the State of Colorado
State Capitol
Denver, Colorado 80203
Dear Dick:
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Before you read it in the newspapers or receive ec~ondhand reports
through the rumor mill, I would like to take this opportunity to give
you a brief outline of the relevant facts surrounding our recent
decision to make drastic cutbacks in employment and production at
Kerr Coal Company's surface coal mine near Walden, Colorado.
In 1974, Kerr Coal Company ("Kerr") commenced the operation of a
surface coal mine located approximately 10 miles east of the town
of Walden in Jackson County, Colorado. The original mine was located
on 720 acres of private ground and has been historically referred to
as the "Marr Mine."
During 1977, representatives of Kerr contacted Energy Fuels Corporation
("Energy") to explore the possibility of creating a joint venture. At
that time, Kerr was producing close to 250,000 tons of coal per year and
employed a total work force of approximately 55 hourly and salaried
employees. The Kerr-Energy discussions led to the consummation of a
joint venture agreement pursuant to which Energy made a substantial
capital commitment to acquire new mining equipment, expand production
and assume operating control of the mine, Kerr is now one of the
several entities controlled by Mr. Robert W. Adams, Chairman of the
Board of Energy. We have continued to operate the mine under the
name of Kerr.
Since becoming involved with Kerr, we have experienced a continuing
growth in sales, production and employment at the mine. For the year
ended December 31, 1980, Kerr produced a record total of 720,000 tons
of coal and shipped a total of 724,017 tons to its two public utility
customers in the Midwest and several small industrial users. This
was the highest level of annual production in the history of the mine "'
and represents an optimum level of production.
As of April 1, 1981, Kerr employed a total of 115 salaried and hourly
employees. The Kerr work force was by far the largest single work
force in all of Jackson County which, according to my information, has
a total population of only 2,000 people: For the reasons I am about