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Bowic No. 2 Minc Updatc PaRc 2 <br />1313 Sherman St., Room 215, Denver, CO 80203, phone 303-866-3567, facsimile 303- <br />832-8106. <br />All of the run-off from the mine facilities area will be contained in one of three sediment <br />ponds. Any water discharged from the ponds will have to meet the strict water quality <br />control standards of the Colorado Wastewater Discharge Permit System enforced by the <br />Water Quality Control Division of the Colorado Department of Public Health and <br />Environment, as required by the Colorado Water Quality Control Act. <br />Extensive field work was performed during the site design process. Engineers from <br />Maxim, a geotechnical engineering firm located in Denver, performed thorough drilling and <br />soil sampling of the area to determine the strength properties of the proposed cut and fill <br />material. Morrison-Knudsen performed the final road and site design based on the <br />geotechnical information supplied by Maxim. Their design focused on stability analyses, <br />including slope stability safety factors of the cut and fill slopes. <br />Once the road and site benches are constructed, the actual facilities construction will <br />begin. The portal bench will house an office and warehouse and a coal transfer tower. <br />On the next lower bench, a coal stacking tube and reclaim tunnel will be constructed. A <br />raw coal stockpile will be located on this bench. On the next lower two benches, coal <br />screening and crushing facilities will be constructed. The coal is then loaded on a downhill <br />conveyor. <br />The downhill conveyor will transport the coal off of the mountain to a truck loadout system <br />which will be located adjacent to old State Highway 133. The coal will typically be hauled <br />to the Bowie No. 1 Mine train loadout silos, which are located near Paonia. <br />The site and facilities construction will take all year. We hope to be producing coal during <br />the first quarter of 1998. Production from the mine will be one to two million tons per year. <br />The mine will employ between 75 and 150 individuals depending on the success of coal <br />sales. The mine should be in operation for many years. The mine has adequate reserves <br />to operate for over 40 years. <br />I would be pleased to discuss this project with you personally or arrange a site tour. If you <br />have any questions, please feel free to contact me at 970-245-4101. <br />Sincerely, <br />llv~1/ 1.~ <br />Jim Stover, P.E. <br />Consulting Engineer <br />cc: Wm. A. Bear, Jr. <br />