PERMFILE110874

• Permit No: C1980007A
• IBM Index Class Name: Permit File
• Doc Date: 4/8/2005
• Section_Exhibit Name: 1.0 Introduction
• Media Type: D
• Archive: Yes

1.0 Introduction
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Mountain Coal Company, LLC (MCC) operates West Elk Mine, an underground coal mine, on
Federal and fee coal leases located in Gunnison and Delta Counties, Colorado, two miles east of
Somerset, Colorado (Figure 1). The lease block locations aze shown on Map 1. The lease blocks
aze in Townships 13 and 14 South, Ranges 90 and 91 West, 6th PM. Mountain Coal Company,
LLC, a Delawaze Limited Liability Company established in March 1998, is owned 100% by Arch
Western Bituminous Group, L.L.C. which is owned 100% by Arch Western Resources, LLC.,
which is owned by Arch Coal, Inc.
Operations at West Elk Mine have been conducted under several different names in the past.
Before 1991, West Ells Mine itself was known as the Mt. Gunnison No.l Mine. Since the mine
opened, operations were conducted under the following names: Anaconda Minerals Company,
ARCO Coal Company (a Division of Atlantic Richfield Company), West Elk Coal Company, Inc.
and Mountain Coal Company. Many of the discussions, maps and exhibits included in this
document still reflect the other mine and company names. All the names aze to be considered
synonymous with West Elk Mine and Mountain Coal Company, LLC.
When the original pernut document was prepazed, operations focused in the F Seam. However,
references to the F Seam resources and facilities throughout this application may also apply to the E
and B Seam resources and facilities.
Construction of West Elk Mine began in 1981. The mine began producing coal from the F Seam in
January 1982 from the B Seam in 1990, and from the E Seam in 2004. Construction of facilities
has been on-going to meet production needs.
Construction of the Sylvester Gulch Facilities Area, including two ventilation shafts, two mine
ventilation fans, a new electrical substation, new and upgraded roads, powerlines and support
facilities, began in the Spring of 1997. These facilities provide the increased power, access, and
ventilation requirements necessary to sustain underground mining operations.
West Ells Mine was originally envisioned to grow to 2.8 million tons per year production from the
F-Seam room and pillaz operations. Soft mazket conditions slowed this expansion during the late
1980's and the mine produced approximately 0.5 million tons per year from the F Seam room and
pillaz operations during this term. After longwall operations were established in the B Seam in
1992, production increased to over 1.4 million tons per yeaz and is permitted for 8.2 million tons of
clean coal production per yeaz.
To allow MCC to remain competitive under current market conditions, expansion into the E
and B Seams, was completed. These seams have high productivity capabilities with longwall
technology. Room and Pillaz mining operations with continuous miners cannot compete with
longwall mining operations. Coal height and other conditions in the F Seam are not conducive to
longwall mining. The E and B Seams aze, however, well suited to ]ongwall mining methods.
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1.0-1 Revised November 2004 PRI!