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Revised 11/85 <br />• reserves are depleted Bear Coal Company plans to continue mining in the <br />"B" Coal Seam below the worked out "C" Seam. <br />The Bear Coal Company plans to produce approximately 250,000 to 300,000 <br />tons of coal per year from a room and pillar method of underground <br />mining. The extent of underground workings will be on the order of <br />about 20 acres per year. The revised permit boundary is shown on all <br />maps included in the mining and reclamation plan application and <br />encompasses approximately 264 additional acres. <br />Purpose for Permit Revision <br />In an effort to maximize production and increase mining efficiency, Bear <br />Coal Company continually updates and revises current and future mine <br />plans. Bear Coal Company is also aware of the need for new coal <br />reserves. <br />• Under the settlement agreement of a lawsuit filed against Atlantic <br />Richfield Company ("ARCO") by Bear Coal Company in October, 1981, Bear <br />Coal Company acquired the right to mine coal ("C" seam) on Federal Coal <br />Lease No. C-0117192. <br />Upon review of mine plans by Bear Coal Company personnel, the logical <br />mining sequence is to proceed directly west from the active mine <br />workings onto the C-0117192 Lease as shown on the Mine Plan Map (Map 9). <br />This is the most efficient mining sequence and will maximize production <br />as well as minimize cost. Under this permit revision, Bear Coal Company <br />plans to mine the "C" coal seam. Bear Coal Company will submit plans to <br />mine the "B" coal seam at a later date to proceed with planned <br />operations. <br />Total annual production will not change (approximately 275,000 tons per <br />year) nor will anticipated manpower, equipment, or mining methods. <br />Bear Coal Company believes this permit revision represents the most <br />practical approach to efficient mining based on Bear Coal Company's over <br />50 years of experience. II <br />-3- <br />