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• break away from the roof and floor of the coal seam. This material will <br />be removed from the King II Mine and placed in the existing mine waste <br />(refuse) storage area. All mine refuse is being constructed into a waste <br />bank. Coal mine waste (refuse) storage area has increased <br />approximately 500 yd3 per year. As of October 2005, approximately <br />50,000 yd3 exist. Results of a survey by Don May, P.E. are pending. <br />Anticipated refuse production from 2002 through 2007 is approximately <br />5000 cubic yards per year. The waste bank is currently designed to <br />accommodate up to 1,000,000 yd3. Details of design and construction <br />are located in Appendix 7 and are entitled Waste Bank Design Summary <br />Report, November 1993, revised December 1997, by Don R. May, P.E. <br />The location of the proposed mine waste storage area is shown on Map <br />C-4 of the current mine permit text and Mine Waste Pile Design, Plan <br />Layout and Detail Sheet. Standard Proctor tests and nuclear density <br />tests will be performed as detailed in Don May's aforementioned report to <br />ensure that the waste pile continues to meet the designed compaction <br />requirements. Should different types of strata be encountered during <br />mining at the King II Mine, these tests will be repeated to ensure that no <br />significant changes in compaction are allowed. <br />COAL FINES <br />Conveyor belt transported coal arrives at the surface for crushing, <br />screening, storage, and truck Ioading. The processing of coal is part of <br />the operation of the surface areas of the King II Mine. Four products are <br />prepared for customer use. They are lump coal (6 inches plus), stoker <br />coal (1 x 1/4 inch), nut coal (3 x 1 inch), and mine run coal (2 inch <br />minus). <br />In the processing of these coals, fines are created (1/4 inch minus), by <br />crushing and screening. These fines are mixed with mine run coal and <br />sold. Coal fines are not stored on the surface in large amounts before <br />being mixed with the mine run and sold. Of the processed product, <br />about 10% to 15% of the coal is fines. <br />Mine run, stoker, and lump coal is stored in stockpile areas shown on <br />Map King II-007. Mine run storage may amount to 30,000 tons. Open <br />stockpiling is necessary, but Iarge stockpiles are undesirable because of <br />the potential of spontaneous combustion of the coal. Care is taken to <br />keep the coal from being scattered. This is not only advantageous from <br />the standpoint of controlling erosion of the pile but also contamination <br />with spoil materials. <br />RETURN OF COAL MINE WASTE TO ABANDONED WORKINGS <br />No coal mine waste will be returned to underground workings at the King <br />• II Mine. <br />National King Coal, LLC ~~King II Mine <br />Section 2.05.3 <br />Page 8 May, 2006 <br />