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iii iiiiiiiiiiiii iiil <br />STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman 51., Room 215 <br />Denver, Colorado 80203 <br />Phone: (3031 866.3567 <br />FAX: (3031832-8106 <br />April 8, 1997 <br />Patti Gordon <br />Honeywood Coal Company <br />85 Whitebridge Road, #404 <br />Nashville, TN 37205 <br />Re: Hamilton Mine (C-91-078) Coal Leases and Right of Entry <br />Deaz Ms. Gordon: <br />~I~~~ <br />DEPARTMENT O <br />NATURAI <br />RESOURCE: <br />Roy Romer <br />Governor <br />lames 5. Lochhead <br />Executive DIrMOr <br />Michael B. long <br />Division DI(MOr <br />It has come to the attention of the Division that Honeywood is considering an option of not <br />renewing the coal leases at the Hamilton Mine in Naturita, Colorado. This decision could have <br />significant impacts on the outcome of reclamation activities at the Hamilton Mine as well as the <br />operators legal right to enter the permit area. <br />According to Rule 2.03.6(1), Honeywood Coal Company's coal permit must contain a complete <br />and detailed description of the permit boundary, a description of the documents upon which the <br />applicant bases his or her legal right to enter and conduct surface coal mining activities (to <br />include reclamation activities), and a statement as to whether that right is the subject of pending <br />litigation. The current coal leases currently meet these obligations, however, if you opt not to <br />renew the leases, then you as the operator must provide the Division a new complete description <br />of documents that you base your legal right to enter the permitted area. <br />Regardless of your decision to renew the leases, be aware that the operator should maintain <br />control of the surface rights at the mine to insure that reclanation efforts will not be jeopardized. <br />As the operator of the mine, you are responsible for anything that occurs at the mine site until <br />a Phase III bond release has been approved, and without control of the surface rights, this might <br />be a problem. <br />When Honeywood decides on a course of action, please submit to the Division the necessary right <br />of entry documents in order to remain in compliance with the Colorado regulations. <br />Should you have any questions or are in need of additional information, please contact me. <br />Si erely, <br />~~ <br />Harry B. ey <br />Envlrontnental Protection Speci list <br />u lim Sbver, Dave Andrews <br />