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Y <br />PROPOSED DECISION <br />As required by Rule 3.03.2(5)(a), this document constitutes written notification of the <br />Division of Minerals and Geology (Division) decision to approve a release of liability of <br />aeeas overlying underground workings at the New Elk Mine, permit no. C-81-012, <br />submitted by Picketwire Processing, LLC (Picketwire). The rationale for this approval aze <br />as outlined below. <br />BACKGROUND <br />The New Elk mine is a former underground mine, which began operations in 1952, owned <br />by Colorado Fuel and Iron (CF&I). Under SMCRA, the mine was originally permitted <br />and operated by CF&I, then transferred to Wyoming Fuel Company in early 1984. The <br />New Elk Mine ceased underground mining operations in 1989, but continued to process <br />coal mined from the Golden Eagle Mine, which was shipped by truck to the New Elk <br />facility for processing. In Mazch 1993, the permit was transferred to Basin Resources, <br />Inc. (BRI). Operations were halted at the Golden Eagle Mine in December 1995, and the <br />mine was reclaimed. Processing and loadout of coal at the New Elk Mine ceased shortly <br />after closure of the Golden Eagle Mine once existing stockpiles were processed and <br />shipped. In Mazch 1997, the New Elk Mine permit was transferred to Picketwire <br />Processing, LLC., in anticipation of coal production at the Lorencito Canyon Mine. At <br />this time, the New Elk facility remains in temporary cessation, awaiting the start of coal <br />production at Lorencito Canyon. <br />The mine is located in Las Animas County, approximately 8 miles west of the town of <br />Weston, Colorado, in portions of Sections 13, 14, 21, 22, 23, 24, 25, 26, 27, 28, 34, 35, <br />and 36 of T33S, R68W and Sections 1 and 2 of T34S, R68 W as shown on Figure 1 of the <br />application. All sections aze partially or fully projected due to the un-surveyed nature of <br />the Maxwell Land Grant. <br />The current permit azea occupies approximately 4,133 acres. The application requests <br />release of 3233 acres, leaving 900 acres remaining within the new permit boundary. Two <br />small areas of disturbance, the upper and lower Apache Canyon ventilation fan sites, have <br />been transferred (via MR-79) to the Golden Eagle permit, C-81-013. Reclamation liability <br />for the Apache Canyon shafts is now the responsibility of BRI, the Golden Eagle mine <br />permittee. The lands overlying the underground workings for which a release of liability <br />Page 2 of 6 <br />