REV98716

• Permit No: C1981022
• IBM Index Class Name: Revision
• Doc Name: OXBOW CARBON & MINERALS INC COAL LEASE MODIFICATIO APPLICATION C-53510 COAL RIGHT OF WAY COC-59584
• Type & Sequence: PR3
• Media Type: D
• Archive: No

recoverable rese~s. The proposed R/W contains a~oximately 102,000 tons of
recoverable reserves. The coal reserves are in the B Seam of the Mesaverde
formation. Leasing the coal and granting the RNV would prevent the bypass of
federally owned coal.
The coal would be mined from the applicant's existing operation, the Sanborn
Creek Mine, on federal lands. The federal land (Lease COC-53510) is currently
being mined and is expected to produce one million tons per year. Mining the
coal from the modification area would not increase the production level.
Access to the reserves in the modification area is limited by depth of overburden
and topography. The only feasible access to the tract is from the Sanborn Creek
Mine. The workings of the mine would be extended to the east. There is no
surface disturbance anticipated.
Mining of the B seam would be by underground room and pillar mining methods.
A continuous miner and shuttle cars would be used as the means of extraction,
with a belt conveyor for transportation of the coal to the surface. Coal would be
transported by truck from the portal to the rail loadout located on fee lands off
Highway 133 at the Town of Somerset.
The proposed R/W tunnel system will be constructed by entering Lot 1 of Section
12 from Oxbow's current mine workings in Coal Lease COC-53510 on the west of
the proposed R/W. The RNV dimensions shall be 1200 feet long by 650 feet wide
and contain approx. 17.906 acres for an underground tunnel system as shown on
the plat entitled 8LM Rioht-of-Way. Sanborn Creek Mine. No. C-81-022, dated
April 23. 1996. This will be treated as a negotiated sale associated with R/Ws
pursuant to 43 CFR 3431. Per the mineral appraisal, the FMV of the coal is
$1.38/ton for a total purchase price of $141,133. Five main mine access entries
will be driven into the lot in a generally west to east direction. Panel entries will
be driven to the north off the main mine access entries. The configuration of the
panel entries will vary depending on the mining method. If room and pillar mining
is employed, up to four panel entries will be required. If longwall mining is
employed, up to three longwall panel entries will be required. The RNV shall be
issued under Title V of FLPMA for a three year term.
The proposed tunnel system will be constructed completely underground and will
be accessed from existing underground workings. Accordingly, there will no
surface disturbances associated with the construction of the R/W. All mine
facilities are located off the modification area and are already permitted by CDMG
on fee and federal lands.
B. Alternative Two - Reiect Applications (No-Action)
Do not authorize the modification to federal coal lease COC-53510 or grant the
R/W, COC-59584.
If the decision was not to modify lease, COC-53510, or grant RNV, COC-59584, """
Oxbow would continue its present mining of the B seam bypassing the
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