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operation or under construction in the United States at this time. Many of the coal resources in the western U.S. are similar in • geologic setting and environment to those being successfully mined hydraulically in western Canada and parts of Siberia. It is therefore realistic to assume that successful hydraulic mines can be designed and operated in the western United States. This is particularly true considering the vast technological base that already exists that can be used to improve on other peoples ideas, systems, methods, and equipment. According to a study by the U.S. Bureau of Mines, over 60 billion tons of coal resources in the U.S. could be recovered by this innovative production method. 4.2 General Operation Plan - Life of Operations ~~ In 1977, the predecessor of New Castle Energy Corporation (NCIG) was formed to acquire the leases on coal properties for the purpose of installing a hydraulic mining operation in the thick, steeply S pitching coal seams of the Gr.3nd Hogback located on the western slope of the Colorado Rocky M~~untains. Since entering the coal business NCIG has acquired more than 3000 acres of coal property near New Castle, Colorado, which is ideally suited for hydraulic mining (Figure 4.2-1) After a multi-year intensive exploration program, which was completed in 1982, NCIG has defined suitable coal resources to develop a 2.5 to 3 million tons per year mine that will operate for more than 25 years. According to a reserve study prepared for NCIG by a well recognized independent engineer- ing company, the property contains approximately 270 million tons of coal in place, 150 million:> tons of which could be recovered using the hydraulic mining technique. The coal which is ranked Bituminous A and B, has Btu content of over 12,000; sulfur of less than 0.5~; ash 6.5$, and moisture 6.2~. In referring to Table 4.2- 1, the anticipated annual coal production for the next 5 years has NCIG - Coal Ridge #1 4-2 ABC/1145/910509