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SECTION 2.04.3 SITE DESCRIPTION AND LAND USE INFORMATION Pre-Mining and Existing Land Use at the New Horizon Mine General. Historical land use in and around the New Horizon Mine has been predominantly related to agriculture. The white man actively began settling the area in the last 1890's, establishing livestock operations to take advantage ofthe large grazeable tracts of native rangeland. Around 1900, the town of Nucla was established and became a center of agricultural activity with the completion of the Colorado Cooperative Irrigation Ditch in 1910. The completion of the ditch and the delivery of San Miguel Riverwater to the First and Second Park areas surrounding Nucla provided a means for viable agricultural production in an area with a near desert climatic regime. The extensive surrounding lands which remained in native rangeland continued to be used for livestock production and hunting of wildlife, primarily big game. In 1898, the uranium bearing ore carnotite was discovered in the area and uranium mining began its roller coaster ride to importance as a major industry in the area. When mining of carnotite declined • after 1923, the mining of vanadium for steel alloys became an important industry through World War II. Also during World War II, uranium mining began gaining importance again and boomed in the 50's 60's and 70's as nuclear power and weapons' demands increased. The early 80's saw a decline in the uranium mining and processing industries, with activity virtually at a standstill by 1986. The mining of coal had been ongoing on a small scale from the early to mid 1900's. These mining operations were small underground operations generally run by individuals. The present New Horizon surface coal mine, the largest coal operation in the area, was initially opened north of the main permit area (in the vicinity of the NH1 area) in 1958 by the Edna Coal Company as the Navajo Mine. In September of 1963, Peabody Coal Company (PCC) purchased the mine, renamed it the Nucla Mine and operated it until temporary cessation of activities in 1983, when the Naturita Power Plant was deactivated. The mine was placed into inactive status in 1988. The power plant at Naturita was then reconstructed as a recirculating fluidized bed type power plant to test this type of new boiler technology. Associated with the power plant reconstruction, Western Fuels-Colorado (WFC), a Limited Liability Company (WFC), purchased the Nucla Mine in 1992 (Permit C-81-008) and renamed it the New Horizon Mine. The New Horizon Mine is located on the NH2 Permit Area, which is about .5 mile south of the original Nucla Mine. The two permit areas are separated by Tuttle Draw, which is an erosional feature that divides the coal seams into two distinct economic units. New Horizon mine has been supplying coal to the Naturita plant since its opening in 1992. Annual production from PCC's . (REVISED26Aug2002) 2.04.3-1