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In Reply Refer To: <br />3400(162} <br />C-51551 <br />Maximum Economic Recovery Report <br />Western Fuels - Utah <br />Lease Application C-51551 <br />Location <br />The lands applied for are located about seven miles north of Ranqely, Colorado, <br />in Rio Blanco County. Referred to as the Red cash tract, the lands lie entirely <br />within the proposed Prairie Doq lease tract. The tract is adjacent to federal <br />lease C-023103 and federal lease C-44693. The legal description of the tract <br />is as follows: <br />T. 3 tl. , R. 101 ?7. , 6th P.i•! <br />Section 25: S1/2 <br />Section 26: SE1/4SE1/4 <br />Section 34: S1/2NE1/4, N1/2E1/4 <br />Section 35: tlE1/4NE1/4, S1/2N1/2, Idl/251/2 <br />Section 36: Ni/2, itl/25u1/4 <br />1280 acres, e~ore or lass <br />•-~ <br />Reserves <br />The geology is discussed at length in the tract delineation geologic report. <br />Exploration scheduled for summer of 1990 was canceled by Western Fuels - Utah <br />(uF-U). P!o further exploration has been done by the company since that data was <br />provided. The B and D seams in the tract contain an estimated total of <br />8,729,000 tons of underground recoverable coal. Recoverable reserves include <br />all -finable B and D seam coal within the tract based on uF-U estimates as <br />.erifiad by the BL;4 and using a 75 percen*_ recovery for the B bed and 25 percent <br />for the D bed. The original BLi? reco~:erable reserve estimate was slightly <br />higher than the ?~F-U estimate due to a difference in interpretations of <br />available data. In light of the difficulties likely to ba enceur.*_ered is ^ining <br />?~ultlpi2 seams with several partings throughout the tract, it is my belief that <br />the recoverable reserve figure of 8,729,000 is a good estimate of the actual <br />amount of clean coal that is recoverable. PIo other seams in the tract are of <br />a sufficient thickness or extent to be economically recoverable. Coals in this <br />area are not amenable to surface mining due to depth and other physical <br />constraints. Awash plant is mandatory to reduce the high ash content in these <br />seams. The following ara typical as received coal quality data for the B and <br />D seams in the tract area: <br />B Saam D Seam <br />BTU content - 9,500 Btu/lb 10,200 Btu/lb <br />Sulphur content - 0.39% 0.44% <br />Ash content - 15.51% 12.19% <br />:•toisture - 12.15% 11.27% <br />