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r,L ~' <br />pm ~- o- <br />SEo~rEC Seneca Coal Company <br />May 13, 2005 <br />Mi. Dan Mathews <br />Division of Minerals and Geology <br />101 South 3~', Ste 301 <br />Grand Junction, CO 81501 <br />(970) 242-5025 <br />RE: Seneca II-W Mine Permit C-82-057 <br />Application fox Renewal of Permit (RN-04) <br />Mx. Boulay, <br />The current five-year mining term for the II-W Mine expires on December 31, 2005. Per Rule <br />2.08.5(3)(f), SCC is submitting a completed application fox renewal at least 180 days prior to the <br />permit expiration. Attached are the completed application form (signed), a copy of the Public <br />Notice to be published in the local newspaper, and a copy of the Certificate of Insurance fox 2005. <br />As SCC has discussed with DMG, the total Seneca mining operation is rapidly approaching the end <br />of mine life. The disappointing performance of the Highwall Miner~and ever increasing overburden <br />depth that exceeds the operating limit of .the 770 dxagline has adversely affected economic <br />pexfoxtnance of Seneca Coal Company; therefore Peabody Energy has made a corporate decision to <br />cease coal production not latex than 2006. Highwall mining operations at the Yoast Mine were <br />terminated in December 2005. This decision has affected the approved timing of backfilling and <br />grading activities of the II-W mine. <br />As the DMG is aware, SCC has xecendy rented four (4) Komatsu dozers that will be added to <br />existing fleet to bring the total up to ten (10) D-10 class dozers to assist with reclamation (backfilling <br />and grading) efforts at Yoast and II-W. These four dozers were "in the dirt" by the end of January. <br />In addition, SCC has a fleet of nine (9) 637 scrapers. As presented in our January 5`" meeting, the <br />big picture for reclamation focuses on backfilling and grading at II-W in 2005 and at Yoast in 2006. <br />This plan will allow mine-wide reclamation to proceed in an orderly and logical manner based on the <br />personnel and equipment at SCC's disposal. <br />Doting discussions with DMG it was determined that the changes to the II-W operations plan <br />would require a permit revision to address the changes to the currently approved mining and <br />reclamation plans. SCC recently submitted Permit Revision (PR-OS) to the II-W Permit, this PR will <br />allow the DMG to base the Findings Document on the revised operations and reclamation plans. <br />Seneca Coal Company • P.O. Box 670 • Hayden, Colorado 81639 <br />Telephone (970) 276-3707 . FAX (970) 276-3014 <br />