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All mining of the B and C seam will be by underground room and pillar mining methods. A continuous miner and shuttle care will be used as the • means of extraction, with a belt conveyor for transportation of the coal to the surface. Coal will be transported by belt conveyor from the portal to the former US Steel rail loadout at Somerset. The pillar sizes will change throughout the lease, with the overburden and stress created by the older overlying mines dictating the size of the pillars. Pursuant to the approved CHLRD mine plan, operations will commence in the C seam and ramp down to the B seam. If the Sanborn Eaet Tract is not obtained by Somerset Hining Company at lease sale, the mine engineering for the currently configured Sanborn Creek Hine will be designed in a northeasterly direction. If the tract is acquired by Somerset, the entries would be driven due east across Somerset's fee lands and through to the east boundary of the Sanborn East Tract. A final decision to design the entries in northeast versus a due east direction moat be made and implemented by June, 1992. Until then, the developmental work for the Sanborn Creek Mine will accommodate both mine design scenarios. The company may add a power substation, powerline, access road and ventilation hole on the lease tract. The location of these facilities ie not known at this time. The estimated acreage of surface disturbance ie expected to be lees than three scree. The surface runoff will be detained on-site at the above ground facilities. The facilities that are already permitted by CMLRD on fee lands are a substation, powder and cap magazines, 200,000 gallon water tank, metal storage building, ambulance garage, office building, shop and warehouse, dumping station and scales, tipple, coal storage silo, lamp building, foreman's change room, sanitary building, mine rescue building, oil storage, rock duet storage, roof bolt storage bins, parking lot, main • access and haul road, storage yard, access road and refuse pile, sewage system and filtration field, Elk Creek Canyon Road, C seam facilities road, topsoil storage area, coal storage area and the east yard gob disposal area. The total permitted disturbance at the mine (fee lands) ie approximately 120 acres. The anticipated annual level of production ie 800,000 tone per year: 300,000 ie expected to come from mining in the C seam and 500,000 tone from the B seam. Production at the 800,000 tone per year level will sustain a 15-year mine life. Current production of fee coal for 1992 ie expected to be approximately 400,000 tone per year. The Sanborn Creek mine ie in an early development stage at this time. Expected employment at the mine, at the full production level of 800,000 tone per year ie 90 persons. Hine life of the lease tract with 10.5 million tons of recoverable reserves la expected to be 15 years. The mine life of the fee coal is expected to be 15 years for a total mine life of the Sanborn Creek Mine of 30 years. Compliance With the Land IIse Plan This application ie in compliance with the existing land use plan. The Uncompahgre Basin Resource Management Plan (RHP) was completed and approved in July, 1989. The land use plan determined that the application area was to be managed for both existing and potential coal development. The area is acceptable for coal development and coal production could occur without conflicting other land uses with a minimum of multiple use restrictions ae described in the RMP. The one remaining land use standard to be applied is the Coal UnauitabLlity Criteria which has been completed and ie contained in Appendix I. :7 4