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mine production that year was 283,211 tons. The 2000 production rate after the first quarter <br />indicates the total production for the mine would be about 160,000 tons/year. The idea( yeazty <br />production for NKC would be. 300,000 tons per year in order to meet 5nancial cash flow demands <br />for the operation. <br />Life ofMine -The, recoverable reserves currently available to the King Coal mine operation include <br />1.G M tons of federal coal and' b.3 M tons of fee coal which total about 1.9 million tons and would <br />provide about G.3 years of expected mine life at the 300,000 tpy production rate. <br />Manpower -The current manpower level averages about 33 people. A recent layoff has reduced the <br />manpower to the lower Ievel but this is considered to be a temporary situation, awaiting greater <br />mazket demand for the coal and increasing the manpower Ievel up to ~0 employees.. <br />Coal sales for 1999 expressed as a percentage aze as foIIows: <br />1. Cement Production 80% <br />2. Electric Utilities 11% <br />3. Domestic 4% <br />4. Tourist Trains" 2% <br />5. Other 3% <br />*As a note of interest, National King Coal supplies the narrow gaige railroads (.purist trains) in <br />Durango, Colorado and Charm, New Mexico. <br />Coat produced by National Khrg Coal is trucked to markets in New Itifcxico, Arizona, and Colorado. <br />This is done utilizing the services of thirty-ton trucks provided by three major and several <br />independent operators. These Lucks are operated by a force of approximately 28 drivers. Coal is <br />hauled traveling from County Road 120 east of the King Coal mine site and Colorado State Highway <br />140 south of Hay Gulch on to regional markets. The mine also supplies coal for residential heating <br />to local customers who pick ii up in their own trucks or have it delivered to thew homes. <br />II. DESCRIPTION OF THE ALTERNATIVES <br />Alternative 1 - Pro..gosed Action <br />The proposed action is to issue gal lease COC 62920which contains approximately 1,304.51 acres <br />• of coal bed 1 reserves. The estimated recoverable coal reserves for coal bed 1 within the lease <br />application azea is 7.45 M tons (5,209 tons pertotal tract acre). This proposed lease application area <br />would be Honed as an expansion of the existing National King Coal mine. This would add about 23 S <br />years to the life of NKC's mining operations at the projected 300K ton per yeaz.production rate. <br />Actual years of operation could last over an extended time since coal production frorr. the icing Coal <br />mine logical mining unit (LMU -with fee and federal lease reserves) could be realized in <br />coniunction with production from the East Alkali Tract at the end of the life of mine of the King <br />Coal mine. I~3ining in the proposed lease application a-ea and in :he adj acent Liv,O and leases could <br />take approximately 30 years (Mine Life). The manpower requirements will remain approximately <br />the same at 30 to 50 employees.. <br />4 <br />