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King Coal Mine (C- 1981 -035) <br />MT -07 <br />Section I - Mine History and Descriptions of the Environment, Operation Plan, and <br />Reclamation Plan <br />Mine Status and History <br />The King Coal Mine is an underground mine located in western La Plata County approximately <br />13 miles west of Durango and 5 miles southwest of Hesperus. Operations at the mine first <br />began in the late 1930's, and the site was formally permitted by National King Coal, Inc. in 1982. <br />The permit has been renewed every five years since, and has a current expiration date of <br />August 18, 2017. National King Coal, Inc. reincorporated as National King Coal, LLC (NKC) in <br />June, 1995. The mining permit was transferred to GCC Energy, LLC (GCC) in May 2008. <br />The original King Coal Mine permit consisted of 340 acres; by 2001, the size had been increased <br />to encompass 1,928 acres. For several decades, mining activities and the permit area were <br />confined to lands located south of Hay Gulch and La Plata County Road (CR) 120, at the site now <br />referred to as the "King I" Mine. In 2006, a revision to the permit was approved (PR -08), <br />creating the "King 11" Mine portion of the operation on 730 acres located north of CR 120 and <br />west of King 1. Each of the mines has its own underground workings and surface facilities, <br />although the permitted areas are contiguous, as illustrated on attached Figure 2. <br />The total combined permit area is 2,658 acres, more or less. Surface ownership is Federal <br />(BLM, 88 acres), State (722 acres) and Private (1,848 acres). Coal ownership is predominantly <br />Federal (1,296 acres), while 722 acres are owned by the State and 640 acres are privately <br />owned. Surface disturbances of 11.80 acres at King I and 24.46 acres at King II have been <br />approved. Disturbed areas include surface facilities for King I and 11, three sediment ponds, <br />roads, refuse pile, and development drill pads. <br />The King II Mine underground workings extend northward beyond the limits of the DRMS <br />permit. The Federal Office of Surface Mining, Reclamation and Enforcement (OSM) administers <br />mining permit No. CO -0106A for this northern area, where the Ute Mountain Tribe is owns the <br />surface. Access and egress to and from these northern workings is gained by way of the King II <br />Mine portals. The relative location of the OSM permit area with respect to the DRMS permit <br />area is illustrated on Figure 1 of this document. <br />Description of the Environment <br />Land Use (2.04.3) <br />The area known as "Hay Gulch" has historically been a source of coal production. Numerous <br />abandoned underground mines exist throughout the Hay Gulch drainage. The King Coal Mine is <br />now the sole active coal mining operation in Hay Gulch, and in La Plata County. Historically, the <br />valley floor of Hay Gulch has been used for grazing and production of hay. The surrounding <br />uplands have been used primarily for rangeland (grazing), with a secondary use of wildlife <br />Page 3 of 16 <br />