2013-08-28_PERMIT FILE - C1981018A ‎(3)‎

• Permit No: C1981018A
• IBM Index Class Name: Permit File
• Doc Date: 8/28/2013
• Section_Exhibit Name: Section II.B Geology Report
• Media Type: D
• Archive: Yes

Development of the B Seam to date has experienced minor seeps from both roof and ribs that typically
dry up in ten (10) days or so. To date (1/99) the floor has been dry.
11.6.6 Coal Reserves and Quality Coal reserves for the Deserado Mine have been estimated
for two categories of reserves: recoverable raw coal reserves and recoverable clean coal. Reporting
these categories of reserves is a change from past practices but is necessary so that all reserve
estimates are consistent with those required by federal regulatory agencies. Table I I.B -1 is a summary
of the reserve estimates by category and by lease for the B and D Seams. The Deserado Mine
reserves are calculated using a coal density factor of 84.24 Ibs /ft3 or 1834.7 tons /acre -foot. The
categories of reserve estimates are defined and the calculation methods explained in the following.
The fire in the tailgate of Iongwall panel 9 resulted in sealing off a significant portion of the remaining
reserves in the D -Seam. The reserve estimates reflect the changes in the mine plan as a result of the
fi re.
11.B.6.a Recoverable Raw and Clean Coal Reserves The recoverable coal reserves of the
Deserado Mine Logical Mining Unit as defined in the Code of Federal Regulations is the remaining raw
coal tonnage which is expected to be produced in accordance with the B and D Seam mine plans. The
D -Seam mine has a recoverable raw coal base of 6.712 million tons. This reserve consists of three
Iongwall panels accessible from the B -Seam.
The B -Seam mine has a recoverable raw coal base of 48.562 million tons that is accessible from the
current mining operation. The B and D Seam mine plans (Maps 119 and 120) show the areas to be
mined.
The recoverable raw coal reserves for the B and D Seams is the "mineable reserve base" minus the
coal left in place for support (such as pillars, fenders, barrier pillars, etc) and minus the coal which
cannot be mined economically or technically, and minus the coal already recovered.
Experience with mining and washing the D Seam coal at the Deserado Mine indicates that clean coal
recovery is 98% of the net coal thickness in the D Seam where net coal thickness is the D Seam
thickness minus the thickness of any partings. Therefore, recoverable raw coal reserves in the D
Seam are based on net coal thickness. D Seam clean coal reserves are 98% of the D Seam raw coal
reserves. Recoverable raw coal reserves in the B Seam are based on the net coal thickness and do
not include parting thickness. The B Seam clean coal recovery is predicted to be 98 percent. Because
of thin interburden and better reserves in the D Seam, no coal will be recovered from the B Seam in
leases C- 0126669 and C- 44693.
II.B.6.b Coal Quality The rank of Deserado Mine coal is on the border of subbituminous A and high
volatile C bituminous (ASTM Standard D- 388 -77). However, (using the "Parr Formula" to calculate the
moist, mineral matter free, calorific value) the D Seam coal and the average of the D Seam and B
Seam is of high volatile C bituminous rank. Sulfur content in the lease area is low, averaging 0.41 %
and ash content is moderate to high, averaging 14.12°/x. Composite proximate analyses on an as
Permit Revision #8 (02/2013) II.B -9