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The Upper Coal Bearing (Paonia) member consists of 200 to 500 feet of gray shales, <br /> interbedded, buff-colored, lenticular sandstones, and coals. The top of this member is <br /> generally considered to be capped by a massive, cliff-forming sandstone. Three coal <br /> horizons have been identified in the Upper Coal member, the D (Oliver) horizon, the E <br /> (Hawk's Nest) horizon, and the F horizon. The D horizon occurs directly above the massive <br /> sandstone of the Lower Coal Bearing member and contains three seams. This horizon is <br /> currently mined in the Orchard Valley Mine. The E horizon occurs about 130 feet above the <br /> D horizon and contains two coal seams. This horizon has been mined at the Hawk's Nest <br /> Mine and was historically mined at the Blue Ribbon Mine. The West Elk Mine plans to <br /> mine the E Seam in the future. It will not be mined on Jumbo Mountain because the E Seam <br /> is split and comprised of several thin (< 5 ft.) coal benches which are separated by rock <br /> partings. The F horizon contains two coal seams and has been mined at the West Elk Mine. <br /> At the mine site, the coal is immediately overlain and underlain by shale. Coal seams of the <br /> F horizon do not exist to the north of the North Fork of the Gunnison River in thicknesses <br /> sufficient for mining. In the Jumbo Mountain area, the F Seam thins to less than five feet in <br /> thickness and is of limited aerial extent. Therefore, MCC does not plan to mine this seam in <br /> Jumbo Mountain. Overlying the Upper Coal member is the Barren member of the <br /> Mesaverde Group. This unit consists of interbedded sandstones, siltstones, shales, and coals. <br /> The unit is not thought to be of marine origin and, as a result, the sandstones and the coals <br /> are highly lenticular, discontinuous, and of limited lateral extent in outcrop. This unit ranges <br /> up to 1,500 feet thick and outcrops throughout most of the five-year permit area. <br /> The Mesaverde Formation is unconformably overlain by the Tertiary Age Rudy or Wasatch <br /> Formation. This formation consists of red to buff-colored shales, red sandstones, and red to <br /> gray conglomerates. The sediments of this formation are weathered volcanic rocks. The <br /> Ohio Creek conglomerate is the basal unit within the formation and is 100 to 200 feet thick. <br /> The alluvium of the North Fork of the Gunnison River consists of Quaternary Age deposits <br /> of mixed coarse sand, cobbles and boulders. These coarse sediments are composed primarily <br /> of igneous and metamorphic rock types, and have their source area in the headwaters and <br /> upper reaches of the North Fork. This coarse alluvium is capped by finer sands and silts. <br /> The North Fork alluvium in the area of the Hawk's Nest, Bear, West Elk and Somerset <br /> Mines is fairly narrow in width and is between 50 and 70 feet thick. About a mile below the <br /> town of Somerset, Colorado, the width of alluvium increases while the thickness of alluvium <br /> decreases to about 35 feet. <br /> Since the three main minable seams (B, E, and F) on West Elk's property directly overlie <br /> one another, their structural characteristics are virtually identical. The F Seam strikes north <br /> 60 degrees west and dips three to five degrees northeast across the lease block. In the Jumbo <br /> Mountain area, the B Seam has an average dip of 4.6 degrees in a north 25 degrees east <br /> direction. The major cleat orientation within the F and B Seams is north 70 degrees east. <br /> This face cleat is prominent and consistent throughout the existing F and B Seam workings. <br /> Fracture sets and cleat orientations of the E Seam are also the same. The major clear <br /> direction in the nearby Bear and Somerset mines is from North 70 to 75 degrees east and is <br /> probably representative of the face cleat direction in the Jumbo Mountain area. <br /> Only minor faulting of limited vertical displacement has been observed in the Blue Ribbon, <br /> Bear, and Hawk's Nest Mines. However, in the Orchard Valley Mine, a fault with a <br /> 9 <br />