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S~rlcv~ 2004 B7Tl Erryire Crnpn'atius *L iaLr7ityRe'azseApp'rcvtioe ~ Page 1 ' <br />1.0 INTRODUCTION <br />With this request, BTU Empire Corporation (Empire, formerly RAG Empire Corporation) seek <br />approval from the Colorado Division of Minerals and Geology (GDMG} for a release of liability for <br />surface subsidence effects due to underground coal mining for underground mine workings on the <br />west side of Staze Htgftway 13 associated with the historic Eagle No. 5 Mine (5 Mine). The State of <br />Colorado, through the Division of Minerals and Geology (CDMG) - Depanment of Natural <br />Resources (DNR), has pemritted the Eagle Mines, which includes the Eagle No. 5, 6, and 9 Mines, <br />and associated suppon facilities and stnrctures. <br />The DNR currently holds a reclamation bond in the amount of $3,554,044 as surety for final <br />reclamation of surface facilities disturbance associated with the Eagle Mines underground operations. <br />There u no bonding requirement for underground mine worltings however, under applicable <br />Colorado law and regulations, Empire currently retains liability and responsibility for any surface <br />subsidence effects which may result from underground mining operations. The Eagle (or Wise I-ill) <br />No. 4 Mine, also located on the west side of Ilgltway 13, was developed operated, closed, and <br />associated surface disturbance reclaimed prior (pre-law) to promulgazion of the Surface Mining <br />Control and Reclamation Act (SMCRA) in 1978, so there u no liability associated with this mine. <br />Underground mining in the ponion of the 5 Mine on the west side of State Hrgltway 13 occurred <br />between the early 1970's and earl}x to mid-1980's, when operazions shifted to the east side of the <br />I-hgltway. Operations in this ponion of the 5 Mine were generally limited to advance room and pillar <br />mining with very limited retreat mini ~, so pillars of coal remained following completion of nunuig to <br />support the mine roof. Based on both historic descriptions and recent visual inspections, little or no <br />surface subsidence has occurred over the Eagle No. 5 western mine workings and a recent subsidence <br />evaluation indicazes negligible potential for future subsidence in all but one area. <br />1.1 OPERATOR INFORMATION <br />BTU Empire Corporation is the pemtittee of record for the Eagle Mines and the applicant under this <br />request for liabiliryrelease. Empire's corporate address is: <br />BTU Empire Corporation <br />29515 Rota[ County Road 27 <br />Oak Creek, Colorado 80467 <br />The contact for this request is: Jerry Nettleton, Environmental Supervisor - (970) 870-2712 <br />1.2 PERMIT INFORMATION <br />The Eagle Mines are inactive underground coal mines thaz are currertly in temporary cessation, with <br />site activities limited to minor reclamation and ongoing monitoring and maintenance. The Eagle <br />Mines are pemutted under an approved Mining and Reclamation Permit (Femur No. G81-044) with <br />the Colorado Division of Minerals and Geology (CDMG). The pemrit was originally approved and <br />issued on September 2, 1983 and was subsequently renewed on January 9, 1988 and October 23, <br />2000. Empire has applied for CDMG approval of Permit Renewal No. RN-04 (12/11/03). A <br />decision on the renewal is currentlypending resolution of a surface right-of--entry issue. <br />B77JEr~pim Crnrnrarrcn * 29515 RC7! 27 Q~k Cam, (.b80467 *(970) 870-2772 <br />c~,®de~noH cm~rxd,~.~ <br />anaiaim <br />ReusrrJ- CUdxr2004 <br />