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PROPOSED DECISION Grand Mesa Coal Company Red Canyon Mines The Colorado Mined Land Reclamation Division proposes to approve, with stipulations, an application for a permit to conduct coal mining submitted by Grand Mesa Coal Company for the Red Canyon No. 1 ("E" seam) and Red Canyon No. 2 ("D" seam) mines, ani the Delta Load-out facility. This approval decision is based on a finding that the proposed operation will comply with all requirements of the Colorado Surface Coal Mining Reclamation Act, C.R.S. 1973, as amended, 34-33-101 et sec., and the regulations promulgated pursuant t~~ the Act. The permit application and the stipulations will become a binding part of the permit upon approval. The stipulations for the Red Canyon Mine are as follows: List of Stipulations Stipulation No. 1 WITHIN 30 DAYS 0= ISSUANCE OF THE PROPOSED DECISION, THE PERMITTEE WILL SUBMIT POND SIZING CALCULATIONS FOR INCORPORATION INTO THE PERMIT APPLICATION. STORAGE CAPACITY FOR SEDIMENT AND WATER PUMPED FROM THE MINE MUST BE ADDRESSED. IF THE POND IS DETERMINED TO BE NOT IN COMPLIANCE WITH l'HE REGULATIONS, IT WILL BE UPGRADED AS NECESSARY WITHIN 3 MONTHS OF PERMIT ISSUANCE, AND PRIOR TO RESUMPTION OF ACTIVE MINING STATUS AT RED CANYON. Stipulation No. 2 WITHIN 90 DAYS OI= PERMIT ISSUANCE, THE PERMITTEE WILL SUBMIT A REVISED STREAM CHANNEL RECONSTRUCTION PLAN TO THE DIVISION FOR REVIEW. IN ADDITION TO THE INFORMATION PREVIOUSLY SUBMITTED, THE STREAM CHANNEL RECONSTRUCTION PLAN SHALL IDENTIFY THE WIDTH OF THE NATURAL STREAM CHANNEL DOWNSTRE~IM OF THE DISTURBANCE, THE MAXIMUM WIDTH OF THE RECONSTRUCTED CH~aNNEL, THE DEPTH OF THE RECONSTRUCTED CHANNEL, AND THE NATURE OF THE BED AND BANK MATERIAL TO BE USED FOR CHANNEL RECONSTRUCTION. THE APPLICANT SHOULD PROVIDE CALCULATIONS FOR THE DESIGN EVENT AND FOR FLOW VELOCITIES IN BOTH THE 5 FT. WIDE AND 10 FT. WIDE CHANNEL SEGMENTS. THE APPLICANT WILL IDENTIFY STREAM SEGMENTS WHERE RIPRAP OR c)THER EROSION PROTECTION WILL BE USED. A STREAM PROFILE SHOULD BE SUBMIT~fED THROUGH THE ENTIRE LENGTH OF THE AREA PROPOSED FOR RECONSTRUCTION SIiOWING THE ORIGINAL SLOPE AND THE PROPOSED RECONSTRUCTED SLOPE. IF RIPRAP IS USED, THE PLAN WILL INCLUDE A DISCUSSION CONCERNING THE SIZING, GRADATION, AND PLACEMENT OF RIPRAP. IN ADDITION, IT WILL DISCUSS HOW THE DURABILITY OF THE MATERIAL USED FOR RIPRAP WILL BE DETERMINED. -2-