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<br />EVALUATION OF MINED AREA FOR <br />PHASE III LIABILITY RELEASE <br />:::!.y:`::w~~R:R:uS'.S::.E4fYR'R:R`:R:::::9::C:'uv6~:x.:u:Y$^..:9"...'SA".RiA',TIYRC'64Yf: 5:1:5~`~R::R`:'Xe:^ ' <br />LvG!`:mS'f6xiM3Y.^aY "G."A`¢:tiR:CCK'SwaVSntl~S'.A`A"4`0'ASRSit.R:YRYM4%'RYk:61ai'SUt.2iHt <br />Picketwire Processing, LLC is submitting a request to the Colorado Division of Minerals and <br />Geology (CDMG) for partial Phase III liability release above the underground workings at the <br />New Elk Mine (Permit No. C-81-012). An area is eligible for Phase III liability release when all <br />mining in the area is completed and the major subsidence effects, if any, have been manifested. <br />For areas of extraction, the liability period shall be a minimum of three years after mining. <br />Picketwire believes it has met these conditions for the area of filing. <br />The New Elk Mine is an underground coal mine located approximately 30 miles west of Trinidad, <br />Colorado. The permit area occupies approximately 4,133 acres in portions of Sections 13, 14, 21, <br />22, 23, 24, 25, 26, 27, 28, 34, 35, and 36 of T33S, R68W; Sections 1 and 2 of T34S, R68W; <br />Sections 30 and 31 of T33S, R 67E; and Section 6 of T34S, R67E (Figure 1). All sections are <br />partially or fully projected due to the unsurveyed nature of the Maxwell Land Grant. Picketwire <br />is requesting release of 3,233 acres which would leave 900 acres within the permit boundary. <br />The mine has been operated intermittently between 1952 to 1998. The preparation plant was <br />added to the site in 1984 which added the capability to process coal from New Elk as well as other <br />mines such as Golden Eagle and Lorencito. The last coal that was mined from New Elk was in <br />1989 with the portals being temporally sealed in 1991. Permanent seals of air shafts in the <br />proposed release area in Apache Canyon were installed in 1996 and reclamation of these shaft <br />areas was conducted by Basin Resources, Inc. in 1997. Since the reclamation.liability for these <br />shafts lies with Basin Resources, they will be incorporated into the Golden Eagle Permit. <br />Picketwire is requesting a partial Phase III fatal liability release on all lands in the southern portion <br />of the permit area. The following sections provide information that justifies Phase III release for <br />the release areas of the New Elk Mine. The discussion focuses on the three-year minimum <br />liability period following completion of all mining activities. General information required for the <br />liability release is provided in Table 1. The requirements for Phase III liability release are athree- <br />year minimum liability period since all mining in the area is completed and the major subsidence <br />effects, if any, have been manifested. No alluvial valley floors or prime farmlands were present <br />on the site prior to mining so these criterion do not apply to the New Elk Mine. Achievement of <br />each requisite was documented by completion of the three-year liability period. Each condition <br />and its supporting documentation are discussed in the following sections. <br />phase111.626Uune 5, 1998 <br />