ENFORCE22254

• Permit No: C1994082
• IBM Index Class Name: Enforcement
• Doc Date: 10/26/2004
• Doc Name: Pattern of Violation Review
• From: DMG
• To: Seneca Coal Company
• Media Type: D
• Archive: No

E~~ INECA
s coalcomps~r Seneca Coal Company
October 26, 2004
Mr. Dave Berry
Coal Program Supervisor
Colorado Division of Minerals and Geology
1313 Sherman Street, Room 275
Denver, CO 80203
RE: Yoast Mine Pattern of Violation Review
Dear Mr. Berry:
The Colorado Division of Minerals and Geology (the "Division") has indicated to Seneca Coal Company (SCC) the
Division is reviewing the enforcement record at the Yoast Mine permit area for a potential pattern of violations.
Significant steps have been taken by SCC to rectify these conditions as evidenced by the information contained in
my October 7, 2004 letter to you regarding SCC's reclamation and permit status and subsequent progress in the
field. Let me emphasis SCC is fully committed to accomplishing all outstanding reclamation and permitting tasks
in as timely a fashion as is feasible. SCC has redoubled efforts to fully comply with the Division's performance
standards.
Several significant circumstances pertaining primarily to mine planning and implementation, labor, and field
conditions contributed to the situation we are addressing today. These circumstances are more fully discussed
below. This information indicates that the conditions, which led to the enforcement actions, were in no way willful
or intentional.
The surface recoverable coal reserves at the Yoast and Seneca II-W mines are nearly depleted. For the past few
years, SCC has been challenged to identify sufficient surface recoverable coal reserves to continue satisfying the
customer's fuel requirements. The inability to satisfy the customer's fuel requirements would directly affect the
longevity of the mines. A number of Peabody Energy's mine planning professionals have been engaged in attempts
to develop mine plans to successfully and economically extract coal in the most difficult mining conditions ever
encountered at the mines. These plans have included leaving various final pit highwalls open in the attempt to
recover reserves by underground methods, auger mining, or highwall continuous miner methods. Additional plans
were developed to extract coal from areas using surface mining methods that would normally be bypassed as
unrecoverable from a surface mining perspective.
Mining conditions have steadily deteriorated to the point that productivity has been negatively impacted and
availability of equipment is stretched to the absolute limit. A number of Peabody Energy's surface mining and
dragline experts have examined the mining conditions and their recommendations were implemented in an attempt
to improve declining equipment productivity. SCC implemented the highwall mining plan using a continuous
mining method in an attempt to supplement production and extend the life of the Seneca mines. Implementation of
the highwall mining plan necessitated dedication of equipment to prepare the pit floors for the highwall mining
Seneca Coal Company • P.O. Box 670 • Hayden, Colorado 81639
Telephone [phone] • FAX [phone]