PERMFILE125503

• Permit No: X198515201
• IBM Index Class Name: Permit File
• Doc Date: 5/6/1998
• Doc Name: Status of NOI and Bond Release
• From: DMG
• To: DORSEY & WHITNEY LLP
• Media Type: D
• Archive: No

iii iiiiiiiiii
STATE OF COLORADO
DIVISION OF MINERALS AND GEOLOGY
Depanmenl of Natural Kesources
I) I }Sharman 51., Room ? 15
f)envor, Colorado BOLO}
Phnnc I}U}7 R66-7567
FAC: 1 SIIA R}L-RIU6
May 6, 1998
Robert A. Bassett
Attorney
Dorsey & Whitney, LLP
370 17th Street, Suite 4400
Denver CO 80202
RE: Coal Exploratiou file CX-85-152-01, Lorencito Tract
Dear Mr. Bassett:
~~
DEPARTMENT OF
NATURAL
RESOURCES
Roy Romer
Governor
lames S. Lochhead
E.ecmwe Duecror
Michael B. Lung
Division Director
As per our discussion, I am providing the following history concerning the bond release for the coal
exploration conducted at the Lorencito Tract, exploration permit # CX-85-152-01.
• The original Notice of Intent was amended twice, once for seven additional holes and again for a
test pit.
• On July 11, 1986, Arco Coal Company filed 180-day and Final Reclamation Reports with the
Division.
• An inspection was conducted on 5/19/88 by the Division and a decision was made to partially
release $85,000.00, leaving $5,000.00 remaining until additional reclamation work is completed.
• This project was originally bonded for $90,000.00 by a Federal Insurance Company bond #810~-
27-77. This bond was replaced by a United Pacific Insurance Company bond # U-630685. The
Division does have a record of the return of bond #8105-27-77, dated 7-13-88, certified mail to
Mr. Paul Bergstrom.
• Shortly after this time, the Division received a rider for $5,000.00 to bond U-630685.
• This original $5,000.00 rider was apparently misplaced by the Division; subsequently a duplicate,
original rider was forwarded to the Division from Arco, and filed in the State Treasurer's office.
• On July 29, 1992, Kim Penoyer of Arco Coal Company requested copies of the information on
this project so that a final request for bond release could be made.
• On October 18, 1993, the Division received three copies of the Final Reclamation Report for the
Lorencito tract NOI #CX-152-01.
• An inspection .vas conducted on May 24, 1994 by the Division on the final work completed: the
Division proposed to release all bond on June 2, 1994.