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,~. <br />TECHNICAL REVISION NO. 35 <br /> <br />~- ~ <br />REPLACEMENT OF COAL SUPPLIER WITH CONCURRENT CHANGE IN <br />ASH SOURCE <br />In submitting this Technical Revision No. 35, Coors Energy Company (CEC) seeks <br />concurrence from the Colorado Division of Minerals and Geology (CDMG) for a change <br />in the coal supply to the power facilities located at Coors Brewing Company. This <br />change will necessarily alter the source of ash used for reclamation at the Coors Energy <br />Company, Keenesburg Mine site. The source of ash for reclamation has been previously <br />approved as part of the Keenesburg Mine Permit, Number C-1981-028 (the "Permit"). <br />On November 13, 2002, the currently approved supplier of coal (Bowie Resources, Ltd., <br />subsidiary of Horizon Natural Resources Co.) filed for Chapter 11 bankruptcy protection. <br />As part of the reorganization process, Bowie was allowed to review all of its sales <br />arrangements, and to choose which of those agreements it would honor or reject, based <br />solely on the benefit derived by that company. One of the agreements Bowie chose to <br />reject was t he s upply a rrangement with C EC, t o p rovide coal for t he o peration o f t he <br />power plant at Coors Brewing Company's Golden, Colorado facilities. The bankruptcy <br />court approved this rejection (effective September 4, 2003), and Coors was forced to find <br />anew source of coal. <br />While soliciting bids for the new supply, Coors tested coals from previous suppliers and <br />from a new source (Oxbow Carbon and Minerals, Elk Creek Mine). While this is a new <br />supplier, Oxbow is producing coal from the same seams, and on a property immediately <br />adjacent to Bowie's mining operations. Samples of the ash produced by burning the <br />Oxbow supplied coal have been submitted for laboratory analysis. The results represent a <br />mixture of both steam and stoker coal use, consistent with the normal operation of the <br />power plant by the owner/operator (Trigen Colorado, LLC). <br />Coors Brewing Company has assumed the role of purchaser of the coal supply, and is <br />close to finalizing an agreement with Oxbow. For this reason, and because its own <br />supply agreement has now been officially rejected, CEC believes the submittal of this <br />Technical Revision to approve a change of coal supplier/ash source is appropriate <br />Submitted with this application are copies (3 each) of the following: <br />- Report of analysis for two ash samples (TCLP analysis and radioactivity <br />testing (Gross Alpha/Gross Beta)). <br />- There are no text modifications to the Permit C-1981-028 since there is no <br />specific reference in the text of the Permit to the identity of the "coal <br />supplier". When approved, a copy of the text of this TR will become part of <br />"Appendix R", thus a revised Appendix R index is enclosed. <br />CEC is not seeking an adjustment to the bonding amounts with this Technical Revision <br />since there is no change in the status of "lands" as a result of the proposed revision. No <br />Technical Revision # 35 <br />Pemvt C-1981-028 <br />CDMG <br />