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Pit 2 will follow the outcrop to the west then northwest. <br />Again the maximum economic mining depth depends on the dip and <br />thickness of the coal. The dip of the coal within Pit 2 varies <br />from 5 to 25 degrees and the thickness between 10 and 22 feet. <br />Again the economic stripping ratio is 5.5 BCY of overburden per <br />ton of coal recovered. <br />The maximum average economic stripping ratio of 5.5 BCY <br />of overburden per ton of coal recovered was determined based on <br />historical operating costs, a reasonable profit, and anticipated <br />prices for 10,000 BTU coal. Costs for producing coal not only <br />include the fuel, labor, depreciation and maintenance costs for <br />removing 5.5 BCY overburden per ton of coal, but they also include <br />coal mining and crushing costs, coal transportation and loading <br />costs, reclamation costs, road maintenance costs, permitting costs, <br />lease acquisition costs, royalty costs, real estate and property <br />taxes, production taxes, payroll taxes, equipment lease costs, <br />and G&A and overhead costs. <br />• <br />The major equipment to be utilized during the life of <br />the permit area is as follows: <br />Item No. <br />Poclain 600 Hydraulic Front Shovel 1 <br />981 Liebherr Hydraulic Backhce 1 <br />IH 350 Payhauler - 50 ton truck 3 <br />IH 560 Payloader - 8 yd front end loader 1 <br />Cat D-9 Bulldozer 1 <br />Blasthole Drill 1 <br />Cat 14G Roadgrader 1 <br />Various Support Equipment <br />11 <br />U <br />_~7_ <br />