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-2- PROPOSED DECISION WYOMING FUEL COMPANY THE NEW ELK MINE The Colorado Mined Land Reclamation Division proposes to approve, with stipulations, an application far a revision to a permit to conduct coal mining operations submitted by Wyoming Fuel Company for the New Elk Mine. The Division is proposing to approve, with stipulations, construction of surface facilities that will allow washing of coal from both the New Elk Mine and Golden Eagle Mine. In addition, the Purgatiore River will be permanently diverted to provide sufficient room for development of the preparation plant facilities, and anew refuse disposal area for permanent disposal of preparation plant refuse will be constructed. All of these activities are covered by this approval. The approval decision is based on a finding that the proposed operations to be approved will comply with all requirements of the Colorado Surface Coal Mining Reclamation Act, C.R.S. 1973, as amended, 34-33-101 et seq. and the regulations promulgated pursuant to the Act. The permit revision application and the stipulations will become a binding part of the permit upon approval. The stipulations for the New Elk Mine permit revision are as follows: STIPULATION PRIOR TO ANY CONSTRUCTION ACTIVITIES FOR THE PROPOSED SEDIMENT POND, WYOMING FUEL COMPANY MUST RECEIVE A WRITTEN NOTICE TO PROCEED FROM THE DIVISION. THIS NOTICE WILL BE PROVIDED ON THE BASIS OF MSHA APPPROVAL OF THE STRUCTURE AND THE DIVISION'S REVIEW OF ALL MATERIALS SUBMITTED TO SECURE MSHA APPROVAL. ALL MATERIALS SUBMITTED 70 MSHA FOR REVIEW SHALL ALSO BE SUBMITTED TO THE DIVISION. STIPULATION N0. 2 THE OPERATOR MUST COMMIT TO THE FOLLOWING MAINTENANCE OF THE SEDIMENT POND: ONLY ONE DEWATERING ORIFICE WILL 8E OPEN AT A TIME. THE FIRST ORIFICE AT THE 2 ACRE FOOT LEVEL WILL BE CLOSED AT SUCH TIME THAT THE SEDIMENT VOLUME REACHES 60X OF THE DESIGN STORAGE OR 1.2 ACRE FEET. AFTER CLOSURE OF THE FIRST ORIFICE, THE SEDIMENT LEVEL WILL BE MAINTAINED AT NO MORE THAT 4G% OF THE 4.95 ACRE F007 DESIGN VOLUME FOR SEDIMENT OR AT APPROXIMATELY THE 2.0 ACRE FOOT LEVEL. STAFF GAGES WILL BE INSTALLED TO ASSURE PROPER DETERMINATION OF SEDIMENT LEVEL.