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West Elk Mine <br /> <br />2.05-4 Rev. 11/04- PR11; 03/06- PR10; 07/15- MR413; 07/18- PR15, 01/24-TR152, 04/24-TR154 <br />0117192, COC-56447, COC-54558, C-1362, COC-67011, COC-67232. The private lease is the <br />Mt. Gunnison Fuel Company lease. <br /> <br />Together, the eight coal leases and fee properties encompass about 19,620 acres. Federal leases <br />D-044569, C-0117192, COC-54558, COC-56447, C-1362, COC-67011, and COC-67232 <br />account for 1,380 acres, 923 acres, 1,012 acres, 2,770 acres, 5,797 acres, 690 acres, and 2,448 <br />acres, respectively. The private lease and fee coal covers the remaining 4,600 acres. <br /> <br />Six major coal seams exist on MCC lease holdings. The seams are identified alphabetically with <br />the A Seam being the lowermost and the F Seam the uppermost. The intervals between the <br />seams vary from as little as 15 feet to more than 250 feet. Current and future economically <br />minable coal reserves in these leases occur in two of the six seams (the E and B Seams). The <br />northern B Seam reserves have been mined and the E Seam will continue to be mined as <br />projected on Map 51. The past and projected B seam mining is shown on Map 52. MCC mined <br />in the F Seam from 1982 to 1991 from Lease D-044569 and C-0117192. This mining was only <br />marginally successful. Poor mine roof conditions, sandstone channels, thin coal, poor coal <br />quality, and other unfavorable conditions negatively affected mining and rendered this seam <br />uneconomic under past and present market conditions. <br /> <br />Approximately 180 feet below the F Seam horizon lies the E Seam. Approximately 400 feet <br />below F Seam and 200 feet below E Seam lies the B Seam. The northern mineable B Seam <br />reserves contained some areas of coal, particularly in Federal Leases D-044569, C-0117192, <br />COC-54558, and COC-56447 where no mineable E Seam exists above the B Seam. As such, B <br />Seam mining in this area caused no issues for E Seam. Recovering the two economically-viable <br />seams at West Elk Mine requires thorough evaluation of various mining scenarios. The <br />mineable areas of the E and B Seams can be seen by comparing Map 13 (B Seam thickness) with <br />Map 18 (E Seam thickness). E and B Seam projected operations, maximizing the recovery of <br />reserves, are shown on Maps 51 and 52, respectively. <br /> <br />MCC has assessed the recoverable coal reserves of the Federal coal leases contained in the E and <br />B Seams. As of the end of 2023, approximately 39.92 million tons of recoverable coal reserves <br />were estimated to remain in the E and B Seams (Table 28) within the current permit and lease <br />areas. <br /> <br />Table 28 <br />Estimate of Recoverable Coal Reserves at the West Elk Mine <br />Recoverable Reserves (millions of tons) <br /> Lease Lease Lease Lease Lease Other <br />Seam COC-56447 COC-67232 C-1362 D-044569 & COC-54558 & Fee Lease Total COC-67011 C-0117192 <br />B 0.15 7.4 23.2 0 0 0.01 30.76 <br />E 0 0 6.6 0 0 2.56 9.16 <br />Total 0.15 7.4 29.8 0 0 2.57 39.92 <br />