GENERAL31848 - Laserfiche WebLink

Home Browse Search

- ~ • Maximum Economic Recovery Report Hay Gulch Tract Sec. 31, T. 35 N., R. 11 X., NMPM Charlie Beecham Mining Engineer Location - The tract is described as lot 4, SE1/4/Srl/4,M1/2SE1/4 Sec. 31, T. 35 N., R. 11 W., NMPM, La Plata County, Colorado. The tract contains approximately 193.08 acres, located about 9 miles south of Hesperus, Colorado, on the south side of Hay Gulch. Access to the coal rould be from the National King Coal leases or Blue Flame property. The tract is within the Durango RRCRA. Stratigraphy - The tract is underlain by the Cliff House Sandstone and the Upper Cretaceous Menefee Formation of the Mesa Verde Group. The Cliff House Sandstone consists of interbedded marine sandstones, silty shales, and mudstones. The Menefee Formation in the tract area is reported to be at least 280 feet thick and to consist of interbedded shale, coaly shale and coal. There are two minable beds in the tract: the Upper Menefee (coal bed 1), and lower Menefee (coal bed 2). The Upper Menefee is about 22 feet belor the base of the Cliff House Sandstone. It ranges from over 6 to about 4 feet in thickness, generally thinning to the south. • The Lower Menefee is estimated to be 5 feet thick throughout the tract. It is about 80 feet beneath the Upper Menefee. Neither bed outcrops on the tract. The Lower Menefee has not Deen included in the reserve base due to a lack of interest by National Rinq Coal and Blue Flame. Overburden on the tract ranges from 300 to 400 feet. This is similar to the adjacent Ring Mine rhich has a recovery rate of 55 to 65 percent. Because National Rinq Coal has mined to a minimum height of 4 feet in the past and because the 9-foot isopach lice is extrapolated into the southernmost portion of the tract, recoverable reserves have been included for those areas rhich contain betreea 9 and 5 feet of coal. The recoverable reserves of the Upper Menefee ate calculated to be: 1,833,000 tons x 55~ = 1,008,000 tons. Mining Method - The depth of the coal precludes surface mining and the reserves are not large enough for longrall mining to be economical. The anticipated production levels of 100,000 to 150,000 tons per year dictates that the mining method xill be by room and pillar nsinq continuous miners. Regardless of xhich applicant is granted the lease, the tract will probably De developed by a combination of east-rest and north-south, five-entry aubmains and five to seven-entry panels. Production Schedule - It is anticipated that production rill begin rithin the first year after lease issuance if National Ring Coal is the successful . bidder. If Blue Flame is granted the lease, development rork to gain access to the tract would begin in year one, but production rould be. limited until year two or three due to the present lack of surface facilities. Both applicants would be serving the same market, which has a