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• operation or under construction in the United States at this <br />time. Many of the coal resources in the western US are <br />similar in geologic setting and environment to those <br />successfully mined hydraulically in western Canada and other <br />parts of the world. It is therefore realistic to assume that <br />successful hydraulic mines can be designed and operated in the <br />western US. This is particularly true considering the vast <br />technological base that already exists that can be used to <br />improve on other people ideas, systems, methods and equipment. <br />According to a study by the U. S. Bureau of Mines, over 60 <br />billion tons of coal resources in the US could be recovered by <br />this innovative production method. <br />4.2 General Operation Plan - Life of Operation <br />In 1977, Storm King Partners was formed to acquire the <br />leases on coal properties for the purpose of installing an <br />hydraulic mining operation i.n the thick, steeply dipping coal <br />seamsof the Grand Hogback, located on the Western Slope of the <br />Colorado Rocky Mountains. In 1980, the partnership was <br />incorporated and became a public company named Storm King <br />Mine, Incorporated. That name was changed in 1985 to New <br />• Castle Energy Corporation (i4CEC). With the collapse of the <br />energy business in late 1986, NCEC became insolvent and <br />declared bankruptcy in 1989. NCIG Financial, Inc. acquired <br />the assets, basically all the owned and leased lands and <br />mineral rights and became the sole owner and operator of the <br />project. Since entering the coal business, NCIG has acquired <br />more than 3000 acres of additional coal bearing properties <br />near New Castle, which is ideally suited for hydraulic mining <br />(Figure 4.2-I). <br />After a multi-year intensive exploration program, which <br />was completed in 1982, the properties have proven reserves to <br />develop a 2.5 million ton per year mining operation that will <br />operate for over 25 years. According to a reserve study, <br />prepared by a well recognized independent engineering company, <br />the property contains over 200 million tons of coal in place, <br />of which over 100 million tons can be recovered by the <br />hydraulic mining technique. <br />The coal is ranked bituminous A and B, has a BTU content <br />of over 12,000; sulfur of less than 0.58; ash 6.58 and <br />moisture of 6&. In referring to Table 4.2-1, the anticipated <br />annual coal production for the next 5 years has <br />NCIG - Coal Ridge No. 1 4-2 03-1-95 <br />