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2.05.3(1) <br />At this time [1-8-88] the mines are in temporary cessation. To reduce the <br />holding cost of the operation, several coal leases within the permit boundary <br />have been terminated. These leases or other nearby leases will be acquired <br />to maintain the projected production rates once mining is resumed. Appropriate <br />revision will made to the permit as leases are added. The Red Canyon N1 <br />and M2 Mine projection maps have been revised to reflect mining current coal <br />rights. These projections were prepared to show mining that could be done <br />while new leases are acquired and permitted. The 182,000 tons projected <br />in the #1 Mine could be mined in 14 months and the 877,000 tons projected ~ <br />in the d2 Mine could be mined in 38 months once the portals are developed. <br />Production will ultimately depend upon the demand for coal. Projections <br />are to mine 160,000 tons per year from the Red Canyon #1 Mine using one unit. <br />Refer to the Red Canyon 91 Mine Projections, "E" Coal Seam Map, 2.05.3(1)-2, <br />for annual projections. <br />• In addition to the mining of the "E" coal seam, Grand Mesa Coal plans on <br />mining the "D" coal seam. Mining in the "D" coal seam will commence upon <br />the completion of the four portals designed for the proposed fit Mine. The <br />"D" coal seam is located approximately 130 feet below the "E" coal seam and <br />is eight to ten feet thick. <br />Mining in the "D" coal seam will be concurrent with mining in the "E" coal <br />seam. Grand Mesa Coal Company plans on having one section in the "E" coal <br />seam and two sections in the "D" coal seam. <br />Mining in the proposed Red Canyon #2 Mine will be in the same sequence as <br />the Red Canyon #1 Mine, and will utilize similar equipment. Entry and crosscut <br />widths will be 18 to 20 feet, with pillars on 80 by 80 foot center. The <br />B1 Mains will be driven north with seven entries, except near the outcrop. <br />When the ill Mains are completed, the bl West Submains will be driven. <br />Columnization of the pillars is planned for the submains and panels. <br /> <br />83 (Revised 1-8-88) ~ <br />