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<br />Midterm Review <br />New Horizon Mines I & 2 <br />This document presents the results of [he Midterm.Review of Western Fuels of Colorado, LLC's New <br />Horizon Mine, conducted by the Colorado Division of Minerals and Geology (the Division). This <br />Midterm Review was conducted to fulfill the requirements of the Colorado Surface Coal Mining <br />Reclamation Act, and Rules 2.08.3, 2.06.2(9), 2.06.3(4), 2.06.5(3), 2.06.7(5), and 3.02.2(4) of the <br />Rules and Regulations of the Colorado Mined Land Reclamation Board for Coal Mining, <br />promulgated to implement the Act. <br />Rule 2.08.3 requires that the Division conduct a review of each permit issued, prior to its midterm <br />(2'/x years). Based on this review, for good cause shown, the Division may require reasonable <br />revisions to, or modifications of, the permit provisions to ensure compliance with the Act and <br />Regulations. <br />Rules 2.06.2, 2.06.3, 2.06.5, and 2.06.7 require that during the midterm review, where applicable, <br />experimental practices, mountaintop removal variances, variances from approximate original contour <br />(AOC), and variances from contemporaneous reclamation, respectively, be reviewed by the Division. <br />The New Horizon Mine does not conduct experimental practices, nor have variances been granted for <br />either mountaintop removal or approximate original contour. <br />Rule 3.02.2(4) requires that the Division review the amount of performance bond liability and the <br />terms of acceptance of the bond every 2'/zyears. <br />This midterm review consisted of a detailed review of the New Horizon Mine permit application and <br />previous Division findings of compliance to identify any items that may have been overlooked during <br />the initial review. The Division also reviewed all subsequent revisions and responses to ensure that <br />all permit commitments and conditions were being followed. Hydrologic monitoring data was <br />reviewed in conjunction with the review of the application to assess the adequacy of the monitoring <br />plan and discussion of predicted hydrologic impacts. Problems and observations from past Division <br />inspection reports were also considered. <br />Section I - History <br />The New Horizon Mine is a medium sized surface coal mining operation located in Montrose County <br />at the town of Nucla, Colorado. The mine area is divided into Mine 1, (the old Peabody Nucla Strip <br />Mine), and Mine 2, the current operations immediately west of Nucla. The mine area encompasses <br />approximately 426.6 acres at Mine 1 and 808.5 acres at Mine 2, all of which is privately owned. <br />Operations at the New Horizon Mine began in May 1983 under Peabody Coal Company and ran <br />continually until 1991. Westem Fuels-Colorado purchased the mine and in May 1992 began mining <br />operations in 1993. <br />Midterm Review ~ New Horizon Mine 2 January 2001 <br />