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• 6 Ks Logical Mining Unit (LMU) at the Deserado Mine, Rlo Blanco Courtly, Cdorado, In accordance wfth Title 43 CFR 4325 -Leasing on Application. The lands applied for are described as fdlows: Township 3 North. Rance 101 West. 6th P.M. Section 25: S'.!, Section 26: SE'/SE'/. Section 34: S'hNE'/a, N+hSE'/. Section 35: NE'/.NE'/., S'hN'h, N'/eS54 Section 36: N'.S, N'/,SW'/. The above described lands comain approximately 1,280.00 acres (Figure 2) and 8,742,000 tons d recoverable coal. The Deserado Mine Is an underground mine using longwall and continuous miner methods for coal extraction. The mine is the fuel supply portion d the Bonanza Power Plant Project Other parts of the Bonanza Power Plant Protect are the Bonanza Station, a 400 megawatt coal fired power plant; the Deseret-Western Railway, a captive railway which moves coal from the mine to the power plant; end a high voltage transmission system. The Deserado Mine is the oNy fuel supplier to the Bonanza Station and Its rate of ccal production is dictated by the fuel requirements d the station. During the next five (5) years the mine is scheduled to produce approximately 1.4 million dean tons annually. • The lease application area will allow the extension d currently planned longwall panels into federally owned coal which will not be subjected to maximum recovery M not mined in conjunction with the Deserado Mine plan. Western Fuels has estimated the recoverable coal reserves for the lease application area based on sRe specific resource data and Western Fuels' proposed mining plan. Western Fuels has Identfied eight (8) coal seams which are correlatable over at least a portion d the Deserado Mine LMU area. Of the eight seams, oNy coal contained in the B and D seams is d adequate thickness to be considered minable. The D seam has a higher dean coal reserve potential than does the B seam. Exploraton conducted during 1985, 1986, and 1989 revealed the presence d a substantial parting In both the 'B' and 'D' seams which renders portions d the area unminable. This exploration also showed that the 'E' seam which overlies the 'D' seam in most of the Deseredo Mine LMU cornerges wfth the 'D' seam In the proposed lease area. This proposed lease w01 not oNy allow ma+dmum recovery of coal In the lease application area, h w~l also allow greater rscovery of the reserves In leases COC023703 and COC44693 by extending the longwall panels IMo the lease application area. The mine plan would then achieve greater recovery of the minable reserves currently In the buRer area In leases COC023703 and COC44693. ~- Mining in the lease application area wll be only by underground methods. The • primary mining method to be used wll be the longwall method. The gate roads necessary to develop the longwall panels will be mined by cpMinuous miner(s).