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plan with a revised mining sequence was prepared. Under this plan, in 1996, South Mains Right was <br />further developed to provide access for room-and-pillar panel RP-1, all longwall gateroads were <br />developed and mining of RP-1 and RP-2 occurred. In 1997, RP-1 and RP-2 were mined out and <br />mining of LW-10 resumed. In 1998, LW-10 as well as LW-11 were mined out and mining of LW-12 <br />began. In 1999, LW-12 will be mined out. Mining of D-Seam will be completed with the completion of <br />LW-12 mining. <br />We expect to pump all the water produced outby the sealed area, from mining as well as natural <br />ground water, into the sealed Longwall District #1 via the 6th East seal. The volume capacity of this <br />area is 140 million gallons. Based on maximum water production rate of 45 GPM, it would take 7-1/2 <br />years to fill. There are 3-1/2 to 4 years of "D" seam recoverable reserves left in the revised mine plan. <br />Therefore, no surface discharge of this water is likely to be required. All ground water produced inby <br />the sealed area will be contained in Longwall District #2 and will not be discharged to the surface. <br />There will be no effects to existing ground water due to storage in these areas. <br />Mining in the D-Seam was completed in 1999. B-Seam developmentbegan in 1997. <br />I.A.4 Mining Equipment Because a mixed mining method is planned for the Deserado Mine, two <br />different equipment systems are required, one set for longwall mining and several sets for room and <br />pillar mining. <br />The longwall equipment consists of a shear to cut the coal and an armored conveyor to transport the <br />coal to a stage loader which loads the coal onto the longwall panel conveyor. Shield-type supports are <br />used to provide roof support in the immediateface areas. <br />The room and pillar equipmentconsists of continuous miner units, each containing a continuous miner, <br />two shuttle cars, one roof bolter and a scoop. <br />An underground electrical distribution system delivers electrical power at 13,800 volts to the points of <br />use in the mine. Transformersare used to obtain the required voltages for the mining equipment. <br />Although the coal seams are not expected to produce significant amounts of groundwater, the mine <br />drainage system is designed to dewater the mine quickly enough to prevent any safety hazard to <br />workers or equipment. <br />Rio Blanco County Special Use Permit#81•t <br />Exhibit B -Mining Plan <br />September20DD <br />s <br />