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• Air Penne ADdi~alw lore~cito Cml Compm~y <br />and R~ underground mines will be consttvcted after the fifth year of operations and are therefore <br />not included in this five-year permit application. Upon attainment of fuL production, the <br />following maximum annual production rate shown on Table 1 is anticipated for the surface mine <br />and the three underground mines ttear the end of the five-year permit term: <br />TABLE 1 <br />LORENCITO CANYON M1NE <br />MAXIMUM ANNUAL COAL PRODUCTION <br />Facility Average Daily Production <br />(tons) Annual Production <br />(tons) <br />Surface mine 3058.8 780,000 <br />P-3 underground mine 1647.1 420,000 <br />R-1/R-2 underground mine 1270.6 324,000 <br />P-1/P-2 underground mine 3505.9 894,000 <br />Total 9482.4 2,418,000 <br />• Coal Processing <br />No coal will be processed on the LCC Lorencito Canyon Mine. All the coal will be transported <br />by rail to the New Elk Facility located approximately eight miles west of the Lorencito Canyon <br />Mine on Highway 12. The existing New Elk preparation plant, refuse disposal area, and coal <br />loadout will be used to process and ship the coal to market. The New Elk facility is currently <br />under a permit (C-81-012) issued by the Colorado Mined Land Reclamation Board, administered <br />by the Colorado Division of Minerals and Geology. <br />The New Elk facility is permitted under Permit 84LA074-1, issued March 8, 1995. The New Elk <br />mine is permitted to unload, wash, stockpile, and store 2.2 million tons of raw coal. LCC has <br />purchased the New Elk facility and wane to increase these limits to process 2.5 million tons coal. <br />A separate permit application will be submitted for the New Elk change of ownership to LCC and <br />the increased processing rate to 2.5 million tons annually. <br />PROCESS DESCRIPTION <br />Production Methods and Equipment <br />• Both surface and underground mining will occur during the fast permit term. Mine operations will <br />begin at the P-3 mine (Figure 2). Following construction of the face-up area, surface facilities, <br />and initial entry into the coal, the R-1 portal and surface facilities will be constructed. The surface <br />,~, nSV.,,,,.ry u. i~r 4 <br />