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-10- <br />Description of the Operation and Reclamation Plan <br />The Orchard Valley Mine is an existing underground mine which has been in <br />operation since 1975. The mine is situated in the northeastern portion of <br />Delta County, Colorado and is located approximately 4 miles North of Paonia, <br />Colorado along the Steven's Gulch road. The coal loadout facilities are <br />located approximately 1 mile northeast of Paonia along State Highway No. 133. <br />The new portal facilities in Roatcap Creek will enable CWI to access the <br />reserves that were cut off due to the fire at the main portals. However, the <br />general mine plan will remain the same. <br />The general direction of mining has been and will continue to be northward to <br />extract coal from the "D" seam. The coal will move from the mining face via <br />teletram to a feeder-breaker and then out of the mine via conveyor belt to a <br />surge bin and truck loading facility. The coal is then trucked to storage <br />silos and a railroad loadout facility where it is loaded onto trains for <br />shipment to market. The current production rate of between 700,000 and 1.3 <br />million tons per year will be maintained during the term of the permit. The <br />mine uses the room and pillar method of extracting coal. <br />Most of the surface facilities are existing structures that will remain in <br />their present state for the life of mine. The only major area of active, <br />ongoing, final reclamation will occur at the waste rock disposal area. As <br />portions of this pile are completed, final regrading, retopsoiling and <br />revegetation will occur. <br />At the conclusion of mining, the portals will be sealed, all surface <br />facilities will be removed, the mine benches will be recontoured, the loadout <br />will be regraded to approximate original contour, and all areas will be <br />revegetated in accordance with the approved postmining land use and <br />revegetation plan. <br />