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Background of the Area and Colowvo <br />=- The Colowyo operation is located in an area which has experienced <br />previous mining by underground methods. From historical record, <br />two underground mines were in operation in what is now the Colowyo <br />permit area. Underground mining continued from the proposed permit <br />area until the early 1970's. <br />The underground mines which were found in the area were known as <br />the Red Wing Mine and the Streeter Mine. Coal from these <br />underground mines was shipped to numerous locations around the <br />Rocky Mountain region with the major use of this coal being used <br />for both industrial and domestic purposes. <br />The underground coal mining in the area where Colowyo's surface <br />mine is located began around 1914 by Collum Coal Company. Federal <br />Coal Lease D-034365 was issued to Clifford Phelan in 1924. In 1945 <br />the Lease was assigned to Colowyo Coal Company, and the name was <br />changed to the Red Wing Mine. Colowyo Coal Company developed the <br />Red Wing Mine to an annual production of 150,000 to 250,000 tons. <br />~~ Pre-startup activities for a surface mine permit commenced in the <br />summer of 1973. Colowyo was purchased by W. R. Grace on December <br />1, 1973. <br />Underground operations at Red wing Mine were shut down in 1974 <br />because of an underground fire. The Hanna Mining Company entered <br />into partnership with W. R. Grace in 1975. <br />Contracts <br />Colowyo produces a high quality, low-sulphur coal from its mining <br />operation. <br />As of 1990, approximately 91% of Colowyo's annual production rate <br />of 4.5 million tons per year is sold. Colowyo has long term sales <br />contracts with Colorado-Ute, Central Power & Light, and Colorado <br />Springs Municipal Power Authority. <br /> <br />3 <br />