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The topography is gently sloping with a few small ridges and shales. Most of <br />the land surrounding the permit area is agricultural and is used primarily for <br />irrigated and non-irrigated farmland which produces alfalfa and pasture <br />grasses. The New Horizon Mine 1 area has been reclaimed and therefore is <br />being returned to pastureland and/or wildlife habitat. <br />The mine is located within the southeast portion of the Colorado Plateau. The <br />region is characterized by broad, fairly smooth surfaced plateaus and mesas <br />with gently dipping slopes dissected by steep canyons. Surface elevations at <br />the New Horizon Mine 1 range from a high of 5,767 feet (MSL) in the northwest <br />part of the permit area to a low of slightly less than 5,672 feet on the <br />southeast part of the permit area along Tuttle Draw (see the attached Index <br />Map Figure 1). Total topographic relief for the New Horizon 1 area is about <br />95 feet. Surface elevations at the New Horizon Mine 2 area range from a high <br />of 5,760 feet (MSL) in the northwest part to a low of 5,642 feet in the <br />southeast part along Calamity Draw for a total relief of about 110 feet. <br />Climate <br />The regional climate of the New Horizon area is typical of intermountain <br />regions. It is characterized by cold winters, hot summers, low rainfall, and <br />short growing seasons. The mine receives approximately 12 inches of <br />precipitation in an average year. The majority of the precipitation falls <br />between October and May. <br />Regional Geology <br />The New Horizon Mines are located near the axis of the Nucla Syncline <br />(San Miguel Syncline), a shallow, broad synclinal fold running northwesterly <br />for 65 miles. No evidence of faults has been observed in drill holes at <br />New Horizon Mine 2 or at the New Horizon Mine 1 area. The Nucla Syncline is <br />10 to 15 miles southwest of the major regional geologic feature of the area, <br />the Uncompahgre uplift. The region lies in the Dolores River basin. The <br />mines are located two to four miles northeast of the San Miguel River. Gently <br />rolling terrain traverses the area and the mines occupy a predominantly <br />southwestern exposure. <br />The mines are located in the Nucla-Naturita coal field. The coal is found in <br />late Cretaceous sediments. The youngest Cretaceous rocks in the area consist <br />of Mancos shale, a dark grey marine shale, present only on isolated hilltops <br />south of the town of Nucla. Two hundred feet of Dakota sandstone outcrops <br />extensively along the axis of the Nucla syncline. This formation consists of <br />a yellowish-gray, fissile sandstone and conglomeratic sandstone interbedded <br />with dark grey shale and coal. There are two coal seams within 100 feet of <br />the base of the Dakota (Figure 2). The lower Cretaceous unit in the area, the <br />Burro Canyon Formation, is separated from the Dakota by an unconformity. The <br />Burro Canyon is comprised of white, grey and light brown sandstones and <br />conglomerates interbedded with green and purplish shales, silts tones, <br />muds tones and thin beds of limestone. This formation has a maximum thickness <br />of 200 feet and outcrops on rims of canyons west and northwest of the mine. <br />This formation is difficult to differentiate from the Dakota in this area and <br />is commonly considered hydrogeologically similar. The Jurassic Morrison <br />Formation is composed of 250 feet to 600 feet of varicolored siltstones and <br />mudstones with beds of limestone and sandstone. <br />-4- <br />