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to accommodate increasing customer demands for the high quality steam coal that Energy Fuels produced during the firs[ 10 years of operation. The expansion program was initiated with the opening of Energy Mine No. 2. Simultaneously, Energy Fuels purchased a new dragline to increase overburden removal capacity at Energy Mine No. 1. In 1973 Energy Fuels consummated an agreement to deliver 22,275,000 tons of coal to Public Service Company of Colorado over a 14-year period ending June 30, 1987. During the same year, Energy Fuels started en- gineering and design work to construct a new crushing and unit train rail car loading facility to handle production increases from Energy Mines Nos. 1 and 2. The crushing and loading plant was designed to load rail cars at the unit train loading rates specified in the contract with Public Service Company. As expansion continued into 1974, Energy Fuels purchased a Marion 8050 Dragline (55-cubic yard bucket capacity) for delivery in 1976. The • dragline is designed to expose and extract the deeper coal reserves at Energy Mine No. 1 and adjacent areas (i.e., coal deposited at depths ranging from 70 to 120 feet from the surface which was not economically recoverable with the two smaller existing draglines). Other develop- ments during 1974 included the completion of the new crushing and unit train rail car loading plant to handle the increased production from Energy Mine Nos. 1 and 2 and the start-up of overburden removal and plant construction at Energy Mine No. 3. During 1975 the new crushing and unit train rail car loading plant at Energy Mine No. 3 was completed, and the first production shipments were made from that mine. In 1976 Energy Fuels signed a coal supply agree- ment with Illinois Power Company and completed the erection of the Marion 8050 Dragline which was placed into service at Energy Mine No. 1 in September of 1976. By January 1, 1977, Energy Fuels had reached the production objectives . that were established at the beginning of the five-year expansion -4-