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Colowyo Coal production is shipped by rail from the crushing and <br />loadout facility known as the Gossard Loadout. The Gossard Loadout <br />crushes coal in a secondary crusher to customer specifications and <br />then loads coal into rail cars of a "unit-train." <br />About four miles from the Gossard Loadout, mine-run coal is crushed <br />to 8 inch minus at the primary crusher adjacent to the pit. This <br />coal is then trucked approximately 4 miles to the Gossard Loadout <br />where it is put through a secondary crusher and loaded into rail <br />cars. <br />Gossard Loadout plant can crush over 1000 tons of coal per hour. <br />The crushed coal, after sampling for quality, is conveyed to a <br />100,000-ton stockpile over the railroad tracks. The 100-ton rail <br />cars are flood loaded as they pass beneath the stockpile. <br />Unit-train loading enables the customers of Colowyo to obtain lower <br />freight rates than would be possible with individual train <br />movements. <br />Colowyo also produces and sells stoker coal produced in a screening <br />plant located near the primary crusher adjacent to the pit. <br />Stoker coal is crushed and screened at the plant and trucked to a <br />rail siding located at the Gossard Loadout. The coal is loaded <br />into railcars by front-end loaders. For further details regarding <br />the stoker coal loading facility, refer to Exhibit 15 - Stoker Coal <br />Facility. <br /> <br />6 <br />