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<br />• • conventional mining with above ground retorting <br />• modified in situ retorting <br />• true in situ methods. <br />Conventional mining has been attempted at several pilot operations (Colony, Anvil <br />Points, Unocal, Mobil, etc.) on the southern boundary of the Piceance Creek Basin. <br />These operations all targeted the rich Mahogany Zone between the A-Groove and <br />the B-Groove. Conventional mining used drill-and-blast with truck haulage and <br />room-and-pillar layouts. This method is sensitive to depth and rock quality. The <br />economics of mining decrease with increasing depth and with poor quality (highly <br />fractured) rock. <br />At the Yankee Gulch leases, the Mahogany Zone is at moderate depth and is more <br />highly fractured than the rock encountered at the pilot mines in the southern <br />Piceance Creek Basin. Therefore, the economics of mining the Mahogany Zone by <br />conventional mining methods would be poor. Conventional mining of other high <br />grade oil shale zones above the Dissolution Surface is likewise highly unlikely <br />because of increasing depth, lower oil shale grade, very poor rock quality, and the <br />presence of large volumes of groundwater. <br />Mining oil shale in the nahcolite-bearing zone using conventional mining methods <br />• (e.g., drill-and-blast, room-and-pillar) may not be possible, but other methods such <br />as shrinkage stoping or sublevel open stoping could be possible. However, <br />conventional mining of oil shale below the Dissolution Surface is unlikely because <br />of depth and low oil shale grade. Solution mining could enhance the economics of <br />mining oil shale below the Dissolution Surface because the removal of 25 to 30 <br />percent of the volume of the formation by removing the nahcolite would increase <br />the oil shale grade on a per-ton basis, thereby lowering unit mining costs. <br />Furthermore, the resulting porous/permeable formation might make the oil shale <br />ore somewhat easier to mine. However, because of the depth and difficulty of <br />providing access via deep shafts, mining the oil shale resource below the <br />Dissolution Surface by conventional means (with above ground retorting) is <br />impractical and uneconomical, and, hence, the oil shale resource in this zone is not <br />minable whether or not nahcolite solution mining has occurred. <br />In the modified in situ methods demonstrated to date, intensive and costly mining <br />and subsequent blasting are required to create aporous/permeable or rubblized bed <br />in the retort for processing. The minability of the oil shale using modified in situ <br />retorting, as demonstrated by Occidental at Logan Wash and Standard Oil at the Ca <br />oil shale tract, could be enhanced by solution mining of nahcolite because, after <br />solution mining, the resulting cavities would be filled with porous, permeable, <br />enhanced-grade oil shale, which could then be subjected to in situ retorting. <br />True in situ methods include both multiple and single bore hole techniques. <br />• Heating of the rock mass can be accomplished using a variety of methods. <br />American Soda, L.L.P. 8_4 <br />Commercial Mine Plan <br />August 18, 1998 <br />