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<br />Permitting History
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<br />Initial site development work at the McClane Canyon Mine (McClane) was conducted under a USGS
<br />approved exploration plan effective December, 1976. The Colorado Mined Land Reclamation Division
<br />(now the Colorado Division of Reclamation, Mining and Safety) issued a three -year permanent
<br />regulatory program permit on April 16, 1982, for a 248-acre permit area. The existing access/haul road
<br />and the portal bench face -up developments were in place prior to issuance of the 1982 permit, and no
<br />topsoil had been salvaged from these areas. This permit was renewed on July 5, 1985, for an additional
<br />three-year permit term. The mine was in temporary cessation from January 17, 1984 to November 17,
<br />1988, when coal production was resumed. On January 27, 1992, the permit was renewed for a five
<br />year term.
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<br />The 1992 renewal incorporated a permit revision whic h added 2,312 acres to the permit area, and
<br />proposed construction of a haul road which would connect the McClane Canyon permit area to the
<br />formerly adjacent Munger Canyon permit area (both mines we re operated by the same permittee until
<br />the Munger Canyon Mine permit was terminated in October of 2018). There were relatively brief
<br />periods of coal production between 1992 and 1999, but for much of this time the operation was in
<br />temporary cessation. On March 3, 1993, the Division approved a permit transfer [Succession of
<br />Operator (SO -1)] from Salt Creek Mining Company to Grand Valley Coal Company (GVCC). On
<br />December 31, 1996, the Division approved a permit renewal (RN -04) for a new five year term, expiring
<br />July 6, 2001.
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<br />On August 17, 1999, the Division approved a permit transfer (SO-2) from GVCC to Lodestar Energy,
<br />Inc. (LEI). On December 1, 1999, operational status was officially changed from temporary cessation
<br />to active. LEI initiated coal extraction operations at the mine the week of February 21 , 2000. Coal
<br />produced at the mine since operations resumed in 2000 had been trucked to the Xcel Energy Cameo
<br />Power Plant near Palisade, Colorado.
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<br />LEI filed for bankruptcy on March 30, 2001, and operated the mine for a period of time as a debtor in
<br />possession. In May 2003, certain LEI assets including the McClane Canyon operation were acquir ed
<br />via bankruptcy auction by Central Appalachia Mining, LLC. On June 26, 2003 the Division received an
<br />application for Succession of Operators (SO -3) to transfer the permit from LEI to CAM. The transfer
<br />was delayed due to delinquent federal lease royalty payments owed to BLM by LEI. These issues were
<br />resolved, and BLM approved assignment of the federal coal leases on 11/4/04 (effective 12/1/04). The
<br />Division issued a proposed decision approving the permit transfer to CAM on November 17, 2004. The
<br />transfer decision was final on December 17, 2004.
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<br />On February 14, 2005, the Division approved a permit renewal (RN -05) for a new permit term
<br />expiring July 6, 2006. On March 30, 2007 the Division received an application for Succession of
<br />Operators (SO-4) to transfer the permit from CAM to McClane Canyon Mining, LLC (MCM). The
<br />Division issued a proposed decision approving the permit transfer to MCM on May 3, 2007. The
<br />transfer decision was final on June 2, 2007.
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<br />On January 12, 2007 the Division approved a permit renewal (RN -06) for a new permit term
<br />expiring July 6, 2011.
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<br />In a letter dated February 11, 2011, MCM informed the Division that the McClane Canyon Mine
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