2003-10-03_GENERAL DOCUMENTS - C1981022

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The valley in which the towns of Paonia and Somerset aze situated is semi-arid, with annual precipitation averaging about 15 inches per yeaz. Mean annual precipitation increases with elevation, reaching over 40 inches per year near the summit of Mt. Owen. The May-September precipitation is five inches for the lowlands and 13 inches for the mountain peaks. This indicates that snowfall patterns play an important part in determining the hydrologic conditions of the azea. Temperature extremes at Paonia have ranged from -28°F in January to 100°F during July and August. The average annual temperature is approximately 49°F. Snowfall averages 58 inches per yeaz. The general area in which the Sanborn Creek/Elk Creek Mine is located is characterized by steeply sloping mountains covered either with tall shmb vegetation dominated by oakbmsh and serviceberry, or stands of pinon and juniper trees. Drainages in the area aze lined with ripazian vegetation communities along the stream banks. Some of the more level areas have been cleazed and support limited livestock grazing; however, for the most part, the surrounding land is undeveloped and is used primazily as wildlife habitat. Recreational activities such as big game hunting, trapping, fishing, and off-road driving also occur in the general azea. The Elk Creek portal facilities aze approximately a half mile up the Elk Creek canyon from the town of Somerset and are located at the contact of the alluvium of the North Fork and steep upland sedimentary formations. Sanborn Creek Tract portal facilities were just east of Sanborn Creek or approximately one mile east of the town of Somerset. Oxbow Mining LLC began the reclamation of these facilities in the summer of 2003. Description of the Operations and Reclamation Plan The Somerset Mine, now the Sanborn Creek and Ells Creek Mine, has been in operation since 1902. Operations have evolved from the earlier hand method of mining, to continuous mining methods, and, finally, to longwall mining. The conventional room and pillar mining system used continuous miners, shuttle cazs, conveyors and/or rail cars. All coal was moved to the surface using rail cars. Approximately 12 to 14 feet of the B seam were mined in the development and retreat cycle. Annual production in the mine was approximately 900,000 tons per year. Once at the surface, the rail cars dumped the coal at the dump station where it was conveyed to the tipple. The coal was crushed at the tipple then conveyed to the coal storage silo. The silo, a cylindrical cement structure, straddles the Denver and Rio Grande Western Railroad track and loads unit trains. 10