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mouth screen and crusher, which feeds product coal onto a stacker conveyor. Coal is stockpiled on the
<br />lower level bench and loaded into trucks for transport to market. Facilities on the upper level mine
<br />bench include four portal entries, including the fan portal and conveyor portal, water and fuel tanks,
<br />support trailers, a shop, a transformer and substation, ventilation fan, and rock dust bin. Disturbed
<br />areas include ditches and culverts for drainage and sediment control The only approved surface
<br />disturbances which have not occurred to date aze an alignment change on a short section of the mine
<br />entrance access mad to straighten the intersection with State Highway 139, and construction of a 700
<br />foot section of haul road connecting the McClane lower facilities area to the adjacent Munger Canyon
<br />Mine pernut area.
<br />Coal is mined underground using room and pillar techniques. Prior to 1991, 526,666 tons of coal were
<br />produced at the mine. 193,954 tons were produced in 1991, and 7,913 tons were produced in 1992.
<br />No coal was produced in 1993 through 1996. 49,115 tons were produced in 1997. The operation was
<br />idle during 1998 and most of 1999. The mine was re-activated in the 4"' quarter of 1999, and coal
<br />production was re-initiated in February 2000. Coal production in calendaz 2000 was 305,332 tons, with
<br />annual production of 323,011 tons in 2001, 327,199 tons in 2002, and 275,640 tons in 2003.
<br />Maximum projected coal production through 2006 is approximately 1.7 million tons per yeaz.
<br />Permitting History
<br />Initial site development work at the McClane Canyon Mine (McClane) was conducted under a USGS
<br />approved exploration plan effective December, 1976. The Colorado Mined Land Reclamation
<br />Division (now Division of Minerals and Geology) issued a three yeaz permanent regulatory program
<br />permit on April 6, 1982, fora 248 acre permit azea. The existing access/haul road and the portal
<br />bench face-up developments were in place prior to issuance of the 1982 permit, and no topsoil had
<br />been salvaged from these azeas. This permit was renewed on July 5, 1985, for an additional three
<br />yeaz permit term. The mine was in temporary cessation from January 17, 1984 to November 17,
<br />1988, when coal production was resumed. On January 27, 1992, the permit was renewed for a five
<br />yeaz term.
<br />The 1992 renewal incorporated a permit revision which added 2,312 acres to the permit azea, and
<br />proposed construction of a haul road which would connect the McClane Canyon permit azea to the
<br />adjacent Munger Canyon permit azea, (both mines are operated by the same pemrittee). There were
<br />relatively brief periods of coal production between 1992 and 1999, but for much of this time the
<br />operation was in temporary cessation. On Mazch 3, 1993, the Division approved a permit transfer
<br />from Salt Creek Mining Company to Grand Valley Coal Company (GVCC).
<br />On August 17, 1999, the Division approved a permit transfer from GVCC to Lodestaz Energy, Inc.
<br />(LEI). On December 1, 1999, operational status was officially changed from temporary cessation to
<br />active. LEI initiated coal extraction operations at the mine the week of February 21, 2000, and active
<br />operations have continued to the present time (Mazch 2004). To date, coal produced at the mine since
<br />operations resumed in 2000 has been trucked to the Xcel Energy Cameo Power Plant neaz Palisade,
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