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Work Force Previously, the EC operation employed approximately 172 employees to produce (2) million tons per year. Presently EC is in a state of temporary cessation and will continue in this mode until market conditions improve. If mining operations were to begin, we anticipate the production level to be approximately (4) million tons per year. Employment at the EC operation would increase to about 280 employees. It is also projected that employment would remain steady through the next 15 to 20 years. EC is very sensitive to the social and economic effects that coal mining may have on the standard of living on northwestern Colorado. Coal mining, energy production, ranching, and farming; have been closely related to this area since before the turn of the century. With continued operation of the EC Mine, the economies of both Moffat and Routt County will definitely receive a positive impact. Northwestern Colorado, especially the City of Craig, will definitely benefit from the planned operation expansion as a result of the salaries, wages, and tax base realized. Size and Configuration of Planned Operations The Eagle No. 5 and No. 6 Mines were and are underground coal mining operations. The "F" Coal Seam, was mined in the No. 5 Mine and the "E" Coal Seam is being mined in the No. 6 Mine, although currently the mine is in temporary cessation. At full production, the Eagle Mines will produce approximately four (4) million tons of coal annually. The primary mining method utilized in both the No. 5 and No. 6 Mines is longwalling. Longwall mining in the No. 5 Mine was completed in early 1990, and full production in the No. 6 Mine began later in that same year. The No. 5 Mine longwall machine was moved to the No. 6 Mine. However, a second longwall machine may be purchased if market conditions warrant such an expenditure. All coal mined at the No. 5 and No. 6 Mines is loaded on unit trains at the mine facility area and hauled by rail to market. Coal processing facilities located at the EC site are described within the operations plan of this application, pages 2.05.3-26 through 2.05.3-29. Compliance with Colorado Surface Coal Mining Reclamation Act To facilitate review of this permit revision, EC has held meetings with the Colorado Mine Land Reclamation staff during the spring of 1986 for the purpose of discussing and reaching some understanding concerning the permit format, as well as information requirements concerning hydrology and potential impacts from mine subsidence. The permit revision preparation efforts of EC have relied partially upon discussions held a[ these meetings. Also, it must be emphasized that the Colorado Mine Land Reclamation Division has significant familiarity with EC's current operations. Since this permit application covers areas that have been scrutinized previously under EC's existing coal permit, it is hoped that this past familiarity will allow review of this permit revision to progress efficiently and productively. Organization of Permit Application With the decision in early 1985 by EC management to implement a more efficient mining method at the Eagle No. 5 mine (longwall), management also decided to update and reorganize its current permit into a more workable, efficient document. Also, due to new contractual agreements with coal buyers, it was decided to include the new life of mine plan into the updated permit document. As a result, EC submitted an updated and reorganized version of Permit No. C-81-044. EC carefully chose the format for the application. The application is arranged for easy reference to specific sections of the Colorado Regulations. Although Rule 4 has been addressed within the text, cross references have been furnished to avoid redundancy and to facilitate review. Supplemental information, Permit Revision 04-34 -2- 7/2/04