REV00486

• Permit No: C1994082
• IBM Index Class Name: Revision
• Doc Date: 5/20/1999
• Doc Name: GARY VALORA AVF PROPERTY YOAST SOUTH EXPANSION
• From: BLUE CREEK RANCH
• To: SENECA COAL CO
• Type & Sequence: PR1
• Media Type: D
• Archive: No

email: dillon@®.net
Scott and Debbie Dillon
P.O. Box 65, Naturita, CO 81422
[phone] website: www.®.neu-ditton
May 20, 1999
Michael G. Altavilla, P.E.
Engineering Manager
Seneca Coal Company
P.O. Drawer D
Hayden, CO 81639
Re: Gary Valora (AVF) Property - Yoast South Expansion
Dear Mr. Altavilla,
I visited this property with Roy Keno Thursday morning, May 13, 1999, and inspected
the portion that is classified as Alluvial Valley Floor (AVF). This is a long narrow piece
of ground approximately 10 - i 5 acres in size and is in native grass hay (est.80% smooth
brome Bc 20% blue grass). There are no row crops produced on this land. The elevation
of this ground is fairly high as aspen border this on the hillsides (short growing season
approx. 75 days). Sage Creek, the main drainage on this property was diverted many
years ago around the side of the irrigated field so there is one field instead of two. The
hay field is flood vrigated and the landowner stated he only has early flood water rights,
these normally last until sometime in June. He harvests one cutting of hay and gets 1 1 /2
to 3 tons of grass hay per acre. Mr. Valora has been taking care of this property for over
20 years. He owns about 25 % of the AVF and leases the remainder from a neighbor on a
I/3 landowner Z/3 renter basis. This means for irrigating and harvesting he gets 2/3 of the
crop and then buys the remaining I/3 from the landowner at current mazket value (approx.
$70-80/ton). The harvest costs involved with hay are approximately 50-60% of the hays
value. The small fields have the highest costs.
Using the above figures to estimate the annual yield this AVF produces approximately
$1,125 per yeaz which is $75 per acre. (15 acres @2T = 30T hay @ $75 = $2,250 Gross
less 50% harvest cost = $1,125 Net Return annually)
Mr. Valora's operation is a small ranch which is not dependent on agricultural
production. He currently works full time as a heavy equipment operator and uses the
production on his land to raise about 50-100 head of sheep. Most of his hay production,
]00-150 ton, is on his father-in-law's property on up the canyon. [t is important to note
Mr. Valora does not see any problems with the mine or the water coming into Sage Creek.
He does not see it affecting his production or the AVF field itself Alt of the hay he
produces is used to winter his livestock.
Blue Creek Ranch