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The proposed Red Cliff Mine project area is located approximately 11 miles north of the towns <br />of Mack and Loma, Colorado, and 1.5 miles east of Colorado State Highway (SH) 139 as shown <br />on Figure _. CAM currently mines approximately 280,000 tons of coal per year from the <br />underground McClane Mine, located 3 miles north of the proposed Red Cliff Mine. The coal is <br />transported by truck to the Cameo Power Plant east of Grand Junction. CAM would cease <br />operations at the McClane Mine once the Red Cliff Mine was operational. <br />For the Red Cliff Mine, CAM is proposing to construct new mine entries (portals) and <br />associated facilities to extract low-sulfur coal from existing Federal Coal Leases C 0125515, C <br />0125516, and C 0125439 (defined collectively as Logical mining unit COC-57198}, potential new <br />federal coal leases, as well as a small amount of private coal. In addition to locating facilities on <br />the existing and potential new coal leases, CAM would locate surface facilities on BLM lands <br />within the boundaries of the proposed ROW and Land Use Application area (approximately <br />1,140 acres). These facilities would include the waste rock disposal area, railroad loop, the unit <br />train loadout, and a conveyor system to move the coal and waste rock. Mitchell Road would be <br />upgraded to serve as the mine access road from SH 139. Other facility components aze listed <br />below. <br />The railroad would be located on BLM and private lands, with the railroad connecting to the <br />existing Union Pacific Railroad near Mack, Colorado. The proposed railroad would traverse <br />approximately 9.5 miles of BLM land, including one crossing of State Highway (SH) 139, and <br />approximately S miles of private land. The proposed railroad would also cross M.8 Road, T <br />Road, and 10 Road. <br />Electric power is needed at the mine to run the underground mining machinery, the conveyor <br />system, and the other mine support facilities. CAM would contract with GVP, the local utility, <br />to supply the necessary electric power. GVP would need to construct a new 69 kV transmission <br />line from the Uintah Substation to the mine, to supply this power. The transmission line would <br />be approximately 14 miles long, with approximately 7 miles on federally managed lands and 7 <br />miles on private land. The proposed route is shown on Figure _. <br />Underground mining would be conducted 24 hours a day, 7 days per week, and 365 days per <br />year by room and pillar and longwall mining techniques. CAM's production from the Red Cliff <br />Mine would be up to 8 million tons per year, with an estimated life of mine of 30 yeazs. CAM is <br />proposing to load the coal onto rail cazs at the mine site and ship it to coal consumers via the <br />Union Pacific Railroad. The production rate at the mine would be controlled by market <br />conditions. Construction of the facilities associated with the Red Cliff Mine would take <br />approximately 2 years to construct and would cost approximately $163 million. Proposed <br />facilities associated with the mine include: <br />• Portal Conveyor Transfer Buildings <br />• Fuel Oil Storage/Fueling Stations <br />• Electrical Substations <br />• Bathhouse/Office Building <br />• Outdoor Material Storage Areas <br />• Equipment Shop <br />• Wazehouse <br />• Washbay <br />• Power Line <br />• Non-Coal Waste Storage <br />• Rock Dust Storage <br />• Pump House <br />• Conveyor Transfer Building <br />• Railroad <br />Maintenance Road <br />• Water Pipeline and diversion <br />2 <br />