2003-10-03_GENERAL DOCUMENTS - C1981022

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Summary The Review Process The Sanborn Creek and Elk Creek Mines, operated by Oxbow Mining, LLC, are located in Delta and Gunnison Counties, adjacent to the town of Somerset on State Highway 133. The original permit under the Colorado Permanent Regulatory Program was issued to U.S. Steel Mining Company, Inc. on October 11, 1983. Kaiser Coal Corporation was operator on the property from 1986 to 1990. In 1990, their permit was transferred to Somerset Mining Company and Somerset completed the permit renewal for another five-year permit term. That permit period initiated October 11, 1988 and expired October 11, 1993. Permit Revision No. One (PR-Ol) was submitted to the Division on June 4, 1990 to open a new set of portals for the Sanborn Creek Mine accessing the C seam and subsequently ramping down to the B seam. This revision approved on March 27, 1991. The permit area was increased by 962 acres to a total of 3737 acres, 1608 acres of which were private land and 2129 acres of which were federal land. Of the 962 acre increase in the permit area, 796 were private and 169 were federal. Permit Revision No. Two (PR-02) was submitted to the Division on April 13, 1992 add the Sanborn East Federal Coal Tract to the mine plan. The Division approved the permit revision No. 2, with a stipulation, on September 25, 1992. OSM approval was received by the Division on March 19, 1993, and final approval of Permit Revision No. 2 was thereby issued. This revision increased the permit area by 1792 acres, including 70 acres of private land and 1722 acres of federal land. The total acreage of the permit area at this point was 5529 acres, 1678 acres ofprivate land and 3851 acres offederai land. The permit was transferred from Somerset Mining Company to Pacific Basin Resources on August 31, 1995, through Succession of Operator No. 2. At that time, the name of the mine was changed from the SomerseUSanborn Creek Mine to the Sanbom Creek Mine. Permit Revision No. 3 was submitted to the Division on May 13, 1996. The operator requested, through this revision, to increase the permit area by 3,518 acres, to a total of 9,047 acres. Of the total permit acreage, 3,553 acres were private and 5,494 acres were federal. The increase in acreage was to incorporate the acquisition of the 160 acre Eastern Lease Modification, a 40 acre right-of--way and a permit boundary adjustment. Mining would continue in the B coal seam. The permit revision was approved on October 14, 1996, with stipulations numbers 21, 22 and 23 attached. Succession of Operator No. 3 transferred the permit from Pacific Basin Resources to Oxbow Carbon & Minerals, Inc. This transfer was approved on February 20, 1997.