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,(~~Ot 5 L~~fl S <br />ENEC D~ ~ - ~ <br />s ~~.m Seneca Coal Company <br />May 9, 2005 <br />Mr. 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 G82-057 <br />Permit Revision No. 5 (PR-05) <br />Deaz Mr. Mathews, <br />Enclosed please find two (2) copies of an application for Permit Revision No. 5 (PR-OS) to the II-W Mine Permit No. <br />C-82-057. <br />The enclosed package includes the application form, proposed public notice, and insertion instructions for updating the <br />PAP, and the revised and updated materials and information. This technical revision updates the life-of--mine plan fox <br />the II-W operation. A third copy of this revision has been sent to DMG's Denver office also addressed to you. <br />As part of this life-of--mine update, SCC has reconciled the "disturbed" and "affected" acres previously reported on the <br />Division's Decision Forms. These revised acreage numbers axe based on 2004 aerial photography, previously approved <br />maps that show permitted disturbance areas, and two requested additional "minimal" disturbance areas. <br />Acres Permitted for Surface Disturbance 1,334.5 ac <br />Surface Acres Actually Disturbed 1,139.9 ac <br />Surface Acres to be Reclaimed (maximum) 1,322.5 ac <br />Affected Acres Beyond Limit of Surface Disturbance G.3 ac <br />The "Disturbed" category has been reduced from 1818.6 acres to 1,334.5 acres and the "Affected" category reduced <br />From 1870.6 acres to 1,340.8 acres. The disturbed area boundaries are shown on Exhibit 12-2, Operations Plan. Over <br />the years the "Acres Permitted for Surface Disturbance" has been continually refined and condensed resulting in the <br />actual acres reported in this pernut revision. <br />SCC has considered and addressed a variety of factors and conditions currently affecting the remaining II-W Mine life <br />including. <br />The I-Iighwall Miner production did not meet budgetary expectations at the Yoast Mine and the Miner was <br />removed from the site before the proposed II-W azea was mined. <br />The conditions experienced in the Wolf Creek azea are not condudve to economic coal recovery by the 770 <br />dragline. <br />• Overall productivity at Seneca's operations is declining because of aging equipment and increasingly adverse mining <br />conditions. <br />These factors and other internal considerations have resulted in a corporate deasion by Peabody Energy to cease coal <br />production at the II-W Mine in early 2006. This Permit Revision is a result of this derision. <br />Seneca Coal Company • P.O. Box 870 • Hayden, Colorado 81839 <br />Telephone (970) 278-3707 • FAX (970) 278-3014 <br />