GENERAL47522 - Laserfiche WebLink

Home Browse Search

Summary and on the south by inferred mineable coal (unleased) (BLM 2004}. Therefore, it is assumed that access to the coal reserves in the Dry Fork LBA tract would most easily be achieved from the existing underground workings at the West Elk Mine with existing surface facilities. Understanding that Federal coal is leased through a competitive bid process, the analysis assumes that a company other than Ark Land/MCC may be the successful bidder at the lease sale. If there were a successful bidder other than Ark Land/MCC, the tract could potentially be subleased back to MCC (because the successful bidder would not have the advantage of existing coal handling facilities or control of adjacent coal reserves, as does MCC). Subleasing would be a high-risk business proposition for an outside bidder because MCC may refuse any such sublease agreement. The coal does not outcrop on the Dry Fork LBA tract, therefore no portals could be located, and there may not be a reasonable shaft location. Production at the West Elk Mine is limited to 8.2 million tons per year based on current air quality and mining operation plans and corresponding permits. Current production ranges between 6.5 and 7 million tons per year using the Longwall mining method, and is capable of peaking at a rate of 7.5 million tons per year. Annual production will depend on several factors, including rail transportation, which ultimately limit production from the North Fork Valley. It is assumed that the coal would be transported to market using the existing coal handling facilities and existing spur rail line. The RFMA for the Dry Fork tract assumes that coal in the E Seam would be extracted from Longwall panels trending northwest southeast. These Longwall panels and corresponding development mining are planned to occur on an adjacent lease already held by MCC. The foreseeable mine operations plan in the Dry Fork LBA tract is an eastward extension of the Longwall panels planned in the existing lease to the west. The mining would "retreat" to the main entries of the mine. Continuous miner development would be used to drive development entries for the Longwall panels, with the primary coal production being achieved using the Longwall method and equipment. The E Seam coal reserves in the Dry Fork LBA tract represent about 30 months of additional coal reserves based on the rate of mining currently employed at the West Elk Mine (BLM 2004). The E Seam coal in the Dry Fork LBA tract would be mined from about 2008 to 20 ] 5. Some variations to these timeframes may occur based on permitting, unforeseen mining or geologic circumstances, coal contract variability, etc. Ark Land's application for the Dry Fork LBA tract did not include foreseeable mining in the B Seam. However, BLM has documented possible recoverable reserves in the B Seam. The coal lease, if it is issued, will encompass all coal within the lease boundaries. Therefore, although it is not anticipated that the B Seam reserves would be mined at this time, the RFMP includes a projection for eventually mining in the B Seam. The B Seam coal in the Dry Fork LBA may be mineable in the northwestern portion of the tract. Longwall panels would likely extend into these reserves from the northwest. The RFMP assumes the B Seam coal in the Dry Fork LBA tract would be mined between 2015 and 2016. The B Seam coal reserves represent about 14 months of additional coal reserves based on the rate of mining currently employed at the West Elk Mine. If the B Seam were ever to be mined, it is presumed that it would be mined in a similar fashion to the E Seam, from the existing mine and using existing facilities. The RFMP assumes a Longwall panel configuration that would cross Deep Creek and the Dry Fork of Minnesota Creek perpendicularly to obliquely. The RFMP was used to develop the coal mine subsidence prediction used to assess potential surface resource impacts. Reasonably Foreseeable Post-lease Surface Use In recent years, coal mines operating in the Somerset coal field have experienced build-up of methane gas in the underground workings after the rock strata have subsided due to mining. Under Mining, Safety, and Health Administration regulations, mines are required to maintain methane levels at or below certain levels to ensure worker safety underground. Typically, the mine ventilation system cannot effectively keep methane levels Dry Fork Lease-By-Application FEIS S-3