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• This document represents Kaiser Steel Resources' Inc. (Kaiser) Chimney Rock Mine permit <br />document for permit number C-81-023 as issued by the Colorado Mined Land Reclamation <br />Division on January 7, 1983. The description of the area is provided in the Legal and <br />Financial Section, 2.03, and is depicted on the Surface and Mineral Ownership Map <br />(Map 1). <br />Description of Organization of Permit Document <br />This permit document is organized in such a manner that generally corresponds with the <br />Colorado Mined Land Reclamation Division (CMLRD) regulations and includes information <br />as required under Rules 2.03 Legal and Financial Information; 2.04 Environmental <br />Resources; 2.05 Application for Permit for Surface or Underground Mining Activities - <br />Minimum Requirements for Operation and Reclamation Plans; 2.06 Requirements for <br />Permits for Special Categories of Mining; Rule 3 Bonding; and Rule 4 Performance <br />Standards. However, the requirements of Rules 3 and 4 have been incorporated into the <br />appropriated discussions contained in Rule 2. <br />Further, supplemental information not included in the text of the document is provided in <br />the form of figures, tables, maps and exhibits. <br />Geographic Setting <br />• The Chimney Rock Mine is located approximately 22 miles west of Pagosa Springs on <br />Colorado State Highway 151. The area to be affected over the life of the operation, in its <br />entirety, is within Archuleta County. The approximate elevation of the mine plan area is <br />6,500 feet above sea level. Figure 1, Vicinity Map, depicts the location of the Chimney Rock <br />Coal Mine site. <br />Stollsteimer Creek meanders through the areas encompassed by the mine plan; however, <br />proposed mining operations will not include any significant disturbance to the creek through <br />its course. There are also four ephemeral drainages adjacent to the mine plan area which <br />drain into Stollsteimer Creek. These drainages flow only as a result of precipitation. <br />Proposed mining plans do not include any disturbance of these drainages. <br />Background-Brief History of the Area <br />The Chimney Rock mining operation is located in an area that has a previous, though <br />somewhat limited mining history. Underground mining operations occurred on a rather <br />limited scale within the mine plan area in the 1930's. Documents reviewed at the office of <br />the Colorado Division of Mines indicate that recorded underground mining operations <br />commenced in 1932. Those operations were conducted in Section 30, Township 34N, Range <br />4W and involved the removal of 200 tons of coal through 1942. The landowner, Mel <br />-1- <br />