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GEOGRAPHIC SETTING <br />The Southfield Mine is located approximately eight (8) miles south of <br />Florence, Colorado on County Road 92 in Fremont County, Colorado. The <br />Southfield loadout site is located approximately one and one half miles <br />northwest of the town of Florence on Fremont County Road 79. The loadout <br />is served by a branch line of the Atchison Topeka and Santa Fe Railroad <br />and provides adequate open storage and siding capacity to provide for <br />loading of approximately 35 rail cars at any given time. <br />The Southfield Mine is located in a highland basin between the foothills <br />of the Met Mountains to the west and the relatively flat plains to the <br />east. Elevations within the mine area range from 6,200 to 6,700 feet and <br />the topography may be characterized as gently to moderately sloping <br />terrain intersected by numerous intermittent and ephemeral drainages. <br />EMPLOYMENT AND ECONOMIC BENEFITS <br />• As of June 1989 EFCI employed a total of 127 people in conjunction with <br />ongoing operations of the Southfield Mine and loadout. Total wages for <br />EFCI employees and contract employees involved in transporting coal from <br />the mine to the loadout totaled in excess of 53.5 million during the 12 <br />months prior to June 1989. With the exceptions of a brief shutdown while <br />plant modifications were being completed and a brief contract dispute, the <br />operation has provided stable long-term employment since its purchase in <br />1985 by EFCI. A number of the current employees are long-term residents, <br />having previously worked for Dorchester Coal Company or on nearby farms <br />and ranches. Because EFCI has provided stable employment with competitive <br />compensation and benefits, labor turnover has been minimal and job <br />applications consistently exceed labor requirements. <br />In addition to stable employment and employee compensation, EFCI purchases <br />necessary materials and supplies in the local area to the extent possible <br />and gives both financial and other support to local organizations. As a <br />4 <br />