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UtahAmerican starts revising Lila Canyon mine application

UtahAmerican Energy Inc. has started making technical revisions to the company's mining application currently pending before the state.

The revisions are part of the review process for UtahAmeri-can to obtain a permit to tap into Book Cliffs coal reserves, indicated company officials

Last Friday, the Utah Division of Oil, Gas and Mining last Friday asked the company for clarification of a number of provisions on the permit application.

UtahAmerican's permit application was filed and approved for the state agency's review in February.

"We are pleased with the steady progress being made in the review process," noted Clyde Borrell, UtahAmerican's president. "The division is being thorough in its evaluation, as it should be."

"A response to the issues addressed by the division in the technical analysis last week will be submitted in a timely manner," indicated the company official.

The state's oil, gas and mining agency asked UtahAmerican to provide additional information and clarification to help with the review of the application.

Ongoing dialogue between the applicant and DOGM is routine for approval or revision of a mining permit, according to company officials.

UtahAmerican holds six federal coal leases in Horse Canyon and Lila Canyon.

The company purchased the mining right from Intermountain Power Agency in 1999.

Approximately one year ago, the United States Bureau of Land Management issued rights of way for the Lila Canyon coal mining project.

UtahAmerican received federal mine approval in November 2001 from the U.S. Department of Interior for the Lila Canyon operation.

In spring 2002, less than a month after DOGM gave Utah-American the green fight to proceed with review, the company submitted a lease-by-application to potentially double its coal reserves adjacent to the proposed Lila Canyon Mine.

"We are making a long-term commitment to mining in the state of Utah," indicated Borrell.

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