2018-02-05_PERMIT FILE - C1992081A (5)

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With CDMG's subsequent approval of HGTI's permit application package (Permit C-92-081), the permitted acres increased to 176.3 acres, of which 105.5 was identified as being disturbed. This included 8.4 acres of disturbance that will occur at the time of final reclamation to accommodate grading activities (i.e., slope reduction). In 2011, HGT LLC filed an application for Pennit Revision 01 that transfers the adjoining area associated with the Tie -Across Haul Road (TAHR) from the Seneca II -W pen -nit area into the Hayden Gulch Loadout pen -nit. This transfer adds an additional 214.7 acres to the current permit area of which 96.6 are disturbed. The new total acreage for the HGL pen -nit is: Permit Area - 391 acres and Disturbed Area - 202.1 acres Peabody Coal Company operated the loadout for HGTI from January 1993 to July 1994. Seneca Coal Company operated the loadout from July 1994 to August 1996. Coal was shipped from the Hayden Gulch Loadout to market via railcar during 1994 and 1995. HGTI has operated the loadout since September 1996 until early 2010 when the pennittee name changed to Hayden Gulch Tenninal LLC. On November 3, 1997, HGTI notified the Division that the Hayden Gulch Loadout had been put into temporary cessation as a result of HGTI or its affiliates not having an existing mine requiring the use of a loadout facility at that time. In July 2000 the loadout was returned to active status as part of Technical Revision TR -05. "IR - 05 was filed with the Division to upgrade the loadout facility to provide for rail -car unloading (or load -in: 500,000 ton per year unloading throughput) in addition to the permitted railcar and truck loadout operations (1,000,000 tons per year throughput — for a total of 1,500,000 tons per year). The Technical Revision provided for greater flexibility in the operation of the facility, and potentially provided for increased facility longevity. Anticipated market conditions, however, which prompted the 500,000 ton per year load -in technical revision, did not materialize and HGTI again placed the facility in temporary cessation on October 14, 2001. The Hayden Gulch Loadout was considered a strategic asset for HGTI and its parent company, Peabody Energy Corporation. Beginning in October 2001, HGTI and Peabody began exploring market opportunities that might include the loadout facility. At that time, Peabody controlled millions of tons of coal resources I the area to the south of the loadout. Peabody subsidiaries conducted coal exploration at two new properties, south and southwest of Hayden, Colorado, which could use the Loadout facility as part of the transportation network to get the coal to market. Consequently, it is not appropriate to terminate railcar loadout operations at the facility. Another potential opportunity for alternative or modified uses of the loadout considered and pursued was to retrofit the facility to include a train unloading and truck loading operation to assist Peabody in fulfilling its long-term contractual obligations to supply steam coal to the Hayden Station Power Plant and allow Peabody to provide sufficient coal to meet ongoing power generation requirements. For a period of time, Peabody fulfilled its contractual obligations to the Hayden Station by delivering coal by truck from the nearby Twentymile Coal, LLC Foidel Creek Mine. Peabody looked at several transportation alternatives for coal delivery from the Foidel Creek Mine to the Hayden Station Power Plant. The alternatives advocated by the owners of the Hayden Station and several safety, environmental, and local citizens groups were rail haulage of the coal from its source to the Hayden Station or a rail/truck option, with rail haul to a nearby location and truck haulage to the plant using a dedicated haulroad. Because the needed throughput was significantly greater than that approved by TR -05, HGTI prepared a technical revision (TR -06) that presented a new plan to retrofit the loadout facility. Under this plan (unloading coal from rail cars and truck haulage for delivery to the Hayden Station), the existing facility would be refurbished to