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Requirement for the Shaft #3 fan <br />Based on mine ventilation studies, the shaft # 3 ventilation fan is required to be operational by <br />April 30, 2007. $y this time the fan must be operating to assure that the West Elk Mine can <br />properly ventilate the mine in order to provide a safe working atmosphere for our miners. As <br />you know, West Elk Mine must utilize ventilation fans located on the surface in conjunction with <br />ventilation controls in the mine to remove dangerous methane gas from the active mine <br />workings. <br />The original construction period for the shaft #3 surface fan construction was the fourth quarter <br />of 2006. Construction of the facility was delayed due to contractor availability, material <br />availability, inclement weather as well as the unknowns associated with activities related to <br />permit bond re-costing. Obtaining materials and contractors to construct new mine facilities has <br />continually become more difficult due to the significant increase in energy related activities on <br />the western slope. Once materials and equipment aze secured for a project, the timeline set out to <br />complete the work must be strictly adhered to. Varying from the project timeline would likely <br />result in loss of the construction slot provided by the contractor. <br />In January, 2007 the fan construction project was awazded to a contractor anticipating pending <br />pemut renewal approval. In February, 2007 the contractor mobllized to the mine site. On <br />February 16, 2007, Henry Bazbe received a verbal message indicating the minor revision <br />required for the fan construction was approved. On February 21, 2007 the contractor began <br />pouring concrete foundations for the fan. <br />The timeline to complete the shaft #3 is very aggressive. The construction work must continue <br />uninterrupted or the ventilation facility will not be in operation in time to assure safe ventilation <br />of the mine. Any additional delay to the project would most likely result in a temporary <br />cessation of mining due to the inability to safely ventilate the mine workings. <br />