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RULE 2 PERMITS <br />The Williams Fork Formation is the predominant coal -bearing unit in the Mesaverde Group. The coal <br />beds in the formation are uniformly distributed near the mine but generally vary in thickness and extent <br />away from the current Colowyo mine area. The coals are part of the Fairfield Coal Group. The natural, <br />pre -historic burning of underlying coal beds has baked areas of the Williams Fork Formation within the <br />permit area and the adjacent area. These surface areas are easily distinguished by their red -brown to <br />orange -brown color on the surface. These coal burns are known to extend into the rock for up to several <br />hundred feet. <br />The stratigraphic thickness of the Williams Fork Formation in the permit area is about 1,700 feet. <br />Although the formation contains some thick sandstone layers, the Twenty Mile Sandstone Member <br />(within the Williams Fork Formation in the Craig, Hayden, and Steamboat Springs areas) is not present in <br />the permit area. A facies change within the Williams Fork Formation has eliminated the Twenty Mile <br />Sandstone in the Danforth Hills Area. <br />A distinctive bed in the formation is a smectite layer, with an average thickness of two to three feet. <br />Formed from the deposition of a volcanic ash, Colowyo has identified this bed as the `Km'. (This bed <br />may be equivalent to the Yampa Bed in the Williams Fork to the north). The bed has been identified as <br />an aquiclude. This bed is approximately 165 feet above the top of the Trout Creek Sandstone. It <br />underlies the lowest seam to be mined by at least 330 feet. Thus, there should be no impact from the <br />mining operations to the underlying Trout Creek Sandstone. <br />The upper Williams Fork Formation is composed of upper and middle deltaic sediments in the vicinity of <br />the Colowyo Mine. This is evidenced by an increase in mudstone and less continuous sandstone layers <br />than is found at other locations in the region (Kiteley, 1983; Geocid, 1998). Coarse-grained sediments in <br />the mining area are typified by channel and bay -fill sandstones. These are of limited extent and laterally <br />discontinuous. <br />Structure <br />The regional geologic structure of the Danforth Hills is a complex of folds dominated by the Axial Basin <br />Uplift to the north of the existing Colowyo mine and South Taylor/Lower Wilson mining areas and the <br />Piceance Basin on the south. The Axial Basin Uplift, an anticline, or arch, is a southeastward extension <br />of the larger Uinta Mountain Arch to the west, which trends west by northwest. Between the Axial Basin <br />anticline and the basin is a series of synclines, anticlines, and monoclines. The permit area is located <br />between the Axial Basin anticline on the north and the Danforth Hills anticline /Wilson Creek dome to the <br />south. <br />The southern limb of the Axial Basin anticline is shared with the Collom Syncline. The current Colowyo <br />operation is on the southern flank of the Collom syncline. Southwest of the permit area is the Danforth <br />Hills Anticline/Wilson Creek Dome. Southeast and east of the permit revision area is the Elkhorn <br />Syncline. A small unnamed anticline is located beneath the permit revision area. An unnamed syncline <br />exists along the West Fork of Good Spring Creek. These structures are affected by the Elkhorn Syncline <br />on the east, which results in an eastward to southeastward downward dip in the South Taylor area (Map <br />7A). The springs in the West Fork of Good Spring Creek are the result of converging bedrock dips <br />caused by this unnamed syncline. <br />South Taylor/Lower Wilson — Rule 2, Pale 12 Revision Date: 4/7/17 <br />Revision No.: RN -07 <br />