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2023-08-04_PERMIT FILE - C1992081A (2)
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2023-08-04_PERMIT FILE - C1992081A (2)
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Last modified
11/28/2023 1:29:35 PM
Creation date
11/28/2023 1:16:39 PM
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Template:
DRMS Permit Index
Permit No
C1992081A
IBM Index Class Name
Permit File
Doc Date
8/4/2023
Section_Exhibit Name
Tab 01 Permit Summary
Media Type
D
Archive
Yes
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<br /> <br /> <br /> <br />With CDMG's subsequent approval of HGTI's permit application package (Permit C-92-081), the <br />permitted acres increased to 176.3 acres, of which 105.5 was identified as being disturbed. This <br />included 8.4 acres of disturbance that will occur at the time of final reclamation to accommodate <br />grading activities (i.e., slope reduction). <br /> <br />In 2011, HGT LLC filed an application for Permit Revision 01 that transfers the adjoining area <br />associated with the Tie-Across Haul Road (TAHR) from the Seneca II-W permit area into the <br />Hayden Gulch Loadout permit. This transfer adds an additional 214.7 acres to the current permit <br />area of which 96.6 are disturbed. The new total acreage for the HGL permit is: Permit Area - 391 <br />acres and Disturbed Area - 202.1 acres <br /> <br />Peabody Coal Company operated the loadout for HGTI from January 1993 to July 1994. Seneca <br />Coal Company operated the loadout from July 1994 to August 1996. Coal was shipped from <br />the Hayden Gulch Loadout to market via railcar during 1994 and 1995. HGTI has operated the <br />loadout since September 1996 until early 2010 when the permittee name changed to Hayden <br />Gulch Terminal LLC. On November 3, 1997, HGTI notified the Division that the Hayden Gulch <br />Loadout had been put into temporary cessation as a result of HGTI or its affiliates not having an <br />existing mine requiring the use of a loadout facility at that time. <br /> <br />In July 2000 the loadout was returned to active status as part of Technical Revision TR-05. TR-05 <br />was filed with the Division to upgrade the loadout facility to provide for rail-car unloading (or load- <br />in: 500,000 ton per year unloading throughput) in addition to the permitted railcar and truck loadout <br />operations (1,000,000 tons per year throughput - for a total of 1,500,000 tons per year). The <br />Technical Revision provided for greater flexibility in the operation of the facility, and potentially <br />provided for increased facility longevity. Anticipated market conditions, however, which prompted <br />the 500,000 ton per year load-in technical revision, did not materialize and HGTI again placed the <br />facility in temporary cessation on October 14, 2001. <br /> <br />The Hayden Gulch Loadout was considered a strategic asset for HGTI and its parent company, <br />Peabody Energy Corporation. Beginning in October 2001, HGTI and Peabody began exploring <br />market opportunities that might include the loadout facility. At that time, Peabody controlled <br />millions of tons of coal resources I the area to the south of the loadout. Peabody subsidiaries <br />conducted coal exploration at two new properties, south and southwest of Hayden, Colorado, which <br />could use the Loadout facility as part of the transportation network to get the coal to market. <br />Consequently, it is not appropriate to terminate railcar loadout operations at the facility. <br /> <br />Another potential opportunity for alternative or modified uses of the loadout considered and <br />pursued was to retrofit the facility to include a train unloading and truck loading operation to assist <br />Peabody in fulfilling its long-term contractual obligations to supply steam coal to the Hayden Station <br />Power Plant and allow Peabody to provide sufficient coal to meet ongoing power generation <br />requirements. For a period of time, Peabody fulfilled its contractual obligations to the Hayden Station <br />by delivering coal by truck from the nearby Twentymile Coal, LLC Foidel Creek Mine. Peabody <br />looked at several transportation alternatives for coal delivery from the Foidel Creek Mine to the <br />Hayden Station Power Plant. The alternatives advocated by the owners of the Hayden Station and <br />several safety, environmental, and local citizens groups were rail haulage of the coal from its source <br />to the Hayden Station or a rail/truck option, with rail haul to a nearby location and truck haulage to <br />the plant using a dedicated haulroad. Because the needed throughput was significantly greater than <br />that approved by TR-05, HGTI prepared a technical revision (TR-06) that presented a new plan to <br />retrofit the loadout facility. Under this plan (unloading coal from rail cars and truck haulage for <br />delivery to the Hayden Station), the existing facility would be refurbished to
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