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The dispute between the two companies was over pre-existing gas leases and new development plans for the coal mine.
An agreement was reached that will protect development of the coal mine whilst enabling Dugan to continue mining gas.
The deal permits Dugan to continue producing gas at existing wells until the coal mines gets too close, but not to drill any new wells, Associated Press reported. San Juan Coal was required to pay Dugan for any lost gas under it Bureau of Land Management leases.
