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Doc Date:12/11/2001 III IIIIIIIIIIIII III sss • 1.0 Introduction Mountain Coal Company, L.L.C. (MCC, LLC) operates the West Elk Mine (WEM), an underground coal mine, on Federal coal leases located in Gunnison and Delta Counties, Colorado, two miles east of Somerset, Colorado (Figure 1). The lease block locations are shown on Map 1. The lease blocks are in Townships 13 and 14 South, Ranges 90 and 91 West, 6th PM. MCC, LLC is owned by Arch Western Resources, LLC, which is owned 99% by Arch Coal, Inc. and 1% by Atlantic Richfield Company or subsidiary thereof. Operations at the West Elk Mine have been conducted under several different names in the past. Before 1991, the West Elk Mine itself was known as the Mt. Gunnison No. 1 Mine. Since the mine opened, operations were conducted under the following names: Anaconda Minerals Company, ARCO Coal Company (a Division of Atlantic Richfield Company), West Elk Coal Company, Inc. and Mountain Coal Company (MCC). Many of the discussions, maps and exhibits included in this document still reflect the other mine and company names. All the names are to be considered synonymous with the West Elk Mine and Mountain Coal Company, L.L.C. When the original permit document was prepared, operations focused in the F-Seam. However, references to the F-Seam resources and facilities throughout this application may also apply to the E and B-Seam resources and facilities. • Construction of the West Elk Mine (WEM) began in 1981. The mine began producing coal from the F-Seam in January 1982 and from the B-Seam in 1990. Construction of facilities has been on- going [o meet production needs. Construction of the Sylvester Gulch Facilities Area, including two ventilation shafts, two mine ventilation fans, a new electrical substation, new and upgraded roads, powerlines and support facilities, began in the Spring of 1997. These facilities will provide the increased power, access, and ventilation requirements necessary to sustain underground mining operations. The West Elk Mine was originally envisioned to grow to 2.8 million tons per year production from the F-Seam room and pillar operations. Soft market conditions slowed this expansion during the late 1980's and [he mine produced approximately 0.5 million tons per year from the F-Seam room and pillar operations during this term. Afrer longwall operations were established in the B-Seam in 1992, production increased to over 1.4 million tons per year and is expected to reach more than 8.2 million tons per year per longwall, exclusive of development mining tonnages. To allow Mountain Coal Company to survive the current market, expansion into the E and B- Seams, was completed. These seams have high productivity capabilities with longwall technology. Room and Pillar mining operations with continuous miners cannot compete with longwall mining operations. Coal height and other conditions in the F-Seam are not as conducive to longwall mining. The E and B-Seams are, however, well suited to longwall mining methods. L~ 1.0-1 RevisedSepr. /995TR?7; Revised Nov. /996PR07 Revised ~t1ar. 1998501