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( ~ <br />shape. Panel development would probably be a 5 entry system <br />with pillars on 60-ft centers and an entry width of 18-ft. <br />• There are no surface disturbances proposed for the lease <br />application area, nor have there been any mine related <br />disturbances, such as surface facilities or roads in the past. <br />If Blue Flame were the successful bidder, National King Coal <br />would have to reorient their operations after the coal is mined <br />out on the existing leases. This reorientation would be to one <br />or both of two possible State coal leases and an operation <br />approximately six miles east of Hay Gulch that is currently in <br />process of review with the Mined Land Reclamation Division. <br />National Kina Coal Scenario - If National Ring Coal Company <br />were the successful bidder, the life of the existing operation <br />would be extended by approximately 8 to 10 years. The lease <br />area would be entered from the present King Coal mine <br />workings. Mining would be underground using the <br />room-and-pillar method of mining. The mine plan consists of <br />panel development off of main and submain entries. The panels <br />will be a 5 or 7 entry system with pillars on 60 or 7o-foot <br />centers with entries 18 feet wide. This allows for better <br />ventilation and systematic pillar recovery. <br />There are no surface disturbances proposed for the lease <br />application area, nor have there been any mine related <br />disturbances, such as surface facilities or roads in the past. <br />The existing facilities of the Ring Coal mine would be used to <br />support continued mining activity if National King Coal Company <br />• is the successful bidder. <br />The B1ue.Flame Coal Company would probably be unable to develop <br />a successful mining operation at its present location if <br />National King Coal were the successful bidder. <br />Other Successful Bidder Scenario - No other successful bidder <br />was considered since the Hay Gulch Tract is too small to <br />support an independent operation. The small amount of reserves <br />and the lack of a market place preclude development by <br />operations not already located adjacent to the tract. <br />The SLM's concern for threatened and endangered species has prompted <br />the inclusion of the following mitigating measure on any lease <br />granted for the Hay Gulch Tract. <br />1. As part of the Permit Application Package, the lessee shall <br />furnish to the Regulatory Officer at the OSMRE, an estimate of <br />the average annual water depletion resulting from the proposed <br />action. This will require the water project proponent's <br />one-time contribution to the Recovery Program in the amount of <br />$10 per acre-foot of the project's average annual depletion, <br />unless the one-time contribution has already been made. <br />• Arrangement for receiving the remitted funds from the lessee <br />will be coordinated directly with the lessee by the permitting <br />7 <br />