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III IIII II I IIIIII III Doc Date:12/11/2001 <br />sss <br />• INTRODUCTION <br />f <br />Kerr Coal Company ("Kerr Coal") presently mines coal from private, <br />deeded land. With this application Kerr Coal has prepared a mining and <br />reclamation plan encompassing the newly acquired ad]acent Federal Coal <br />Lease No. C-22777 together with existing private reserves to comply with <br />the recently promulgated regulations for the Federal Lands Program under <br />the Permanent Regulatory Program of the Surface Mining Control and <br />Reclamation Act of 1977 ("SMCRA") as well as the newly enacted Colorado <br />Surface Coal Mining Reclamation Act of 1979. <br />Background of Keir Coal <br />Kerr Coal is a relatively small, privately owned Colorado corporation <br />with executive offices in Denver, Colorado, and field offices in Walden, <br />Colorado. Engaged exclusively in mining coal by surface mining methods <br />. in Jackson County, Colorado, the company has no extensive land, water or <br />other natural resource holdings. (See: Figure 1, General Location <br />Map.) All of its human and capital resources are devoted to its single <br />coal mining operation in Jackson County, Colorado. <br />Operations began at the Marr Strip 111 in 1974. The first coal was pro- <br />duced during the last quarter of that year, and thereafter annual pro- <br />duction increased at relatively modest rates for the next four years. <br />Yearly production records for the operation are shown in Table 1, His- <br />torical Production Rates. <br />Beginning in August of 1977, Kerr Coal launched an expansion program to <br />increase coal production to accommodate increasing customer demands for <br />the high quality steam coal that Kerr Coal produces. At that time, a <br />production objective of 750,000 tons per year by 1981 was established by <br />the company. <br /> <br />