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<br />SUMMARY OF THE REVIEW PROCESS <br />The Coal Gulch Mine, located 5 miles west of Durango, La Plata County, <br />Colorado, is currently operating as a coal exploration operation under Notice <br />of Intent CX-191-00, issued by the Colorado Mined Land Reclamation Division <br />on December 17, 1984. <br />Peerless Resources, Inc. originally submitted a coal mining permit application <br />on August 30, 1984. The Division found the original submittal incomplete on <br />September 11, 1984. The applicant submitted additional information on <br />December 28, 1984, and the Division deemed the application complete on <br />January 3, 1985. On February 13, 1985, the Division sent a preliminary <br />adequacy review to the applicant outlining concerns and deficiences within the <br />application. Peerless Resources and their consultant met with the Division on <br />March 11, 1985, to discuss the concerns contained in the preliminary adequacy <br />review. On April 23, 1985 the applicant submitted responses to the concerns <br />raised in the PAR. On June 7, 1985, the Division met with Peerless Resources <br />and their consultant to further discuss unresolved concerns. On July 2, 1985, <br />the applicant submitted additional information. Since that time the Division <br />has been reviewing the response and preparing the following findings. <br />General Description of the Existing Environment <br />The proposed operation is located in southwestern Colorado approximately 5 <br />miles west of Durango off State Highway 160. Elevation of the area varies <br />from 7,000 to 7,800 feet. <br />The proposed permit area lies in the upper rim of the San Juan Basin. The San <br />Juan Basin is an asymmetric structural basin in northwestern New Mexico and <br />southwestern Colorado. Sedimentary rocks in the area are of both marine and <br />non-marine origin, and were formed through the transgression and regression of <br />an epicontinental Cretaceous sea. <br />The major formation in the area is the Mesaverde Group which overlies the <br />Mancos Shale. The Mesaverde is composed of three major units (in ascending <br />order): Point Lookout Sandstone, Menefee Formation, and Cliffhouse Sandstone, <br />all of which are represented in the proposed permit area. <br />Coal seams to be mined are in the Menefee. This formation is composed of <br />interbedded sandstone, shale, carbonaceous shale, and coal. Two coal seams of <br />economic importance are found in this formation in the vicinity of the <br />proposed mine. Proposed underground miffing operations will remove one seam <br />during the course of this permit term. <br />