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NATIONAL KING COAL, INC. <br />G~•70C~ <br />October 1, 1998 <br />iii iii~~~iiiiiii iii <br />999 <br />State of Colorado <br />Division of Minerals and Geology <br />11313 Sherman Street <br />Room 215 <br />Denver, Colorado 80203-2273 <br />Attention: Harry Ranney, Reclamation Specialist <br />Re: Third Quarter 1998 Surface Subsidence Inspection <br />Third Quarter 1998 Huntington Ditch Inspection <br />Dear Harry: <br />There are no new cracks over Section No. 9 Right as of this <br />inspection. <br />Another area where pillars have recently been extracted is <br />beneath the Dunn/Ute Mountain Ute Tribe Lease. OSM has been <br />checking, measuring, photographing and mapping these cracks on a <br />monthly basis. These cracks look much like the cracks which are <br />not under OSM jurisdiction. <br />The other areas where pillars have recently been extracted are <br />Sections No. 7 South, 6 South and 5 South/1 Left. The 7 South <br />and 6 South area exhibits normal subsidence tension cracks <br />extending north from a point about 300 feet south of the <br />Huntington Ditch. This area of the ditch has been replaced with <br />a buried pipeline. Some cracks appear to have crossed the <br />pipeline with no apparent consequences. The landowner is <br />monitoring the situation closely. <br />Call if you have any questions. <br />Sincerely, <br />Tom Bird <br />Planning b Engineering <br />National King Coal, LLC <br />1315 Mein Avenue, M314 MINE OFFICE: <br />Post Ollice Box 2905 4424 Cou my Roatl 12D <br />Durango, Colo re AO 61302 Hesperus, Coloretlo 61326 <br />Telephone: <br />(303) 259.2116 <br />Fex: <br />(303) 259-4616 <br />Telephone: <br />(303) 365-4526 <br />Fax: <br />(J03) 365.4636 <br />RECEIVED <br />OCT 5 1598 <br />DIV. OF MINERALS <br />& GEOLOGY <br />