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West Elk Mine • (1) Production Methods and Equipment The West Elk Mine block consists of minable coal reserves in five Federal coal leases, one private lease, and other fee coal properties. The Federal leases are D-044569, C-0117192, COC-56447, COC-54558 and C-1362. The private lease is the Mt. Gunnison Fuel lease. Together, the six coal leases and fee properties encompass about 15,500 acres. Federal leases D-044569, C-0117192, COC-54558, COC-56447, and C-1362 account for 1,380 acres, 923 acres, 1,012 acres, 2,770 acres, and 4,836 acres, respectively. The private lease and fee coal covers the remaining 4,600 acres. Coal Reserves and Recovery Six major coal seams exist on the West Elk Mine property. The seams are identified by letter with the A-Seam being the lowermost and the F-Seam the uppermost. The intervals between the seams vary from as little as 15 feet to more than 250 feet. The economically minable coal reserves in these leases occur in two of the six seams (the E and B-Seams). The B-Seam has been mined and the E-Seam is planned to be mined in Lease D-044569; the B-Seam has been mined in Leases COC-54558 and C-0117192, where mining continues; the B-Seam is planned to be mined in Lease COC-56447; and the B-Seam has also • been mined and further B-Seam and the E-Seam are planned to be mine in Lease C-1362. Mountain Coal Company believes the E-Seam can be mined without precluding mining of the B-Seam. This conclusion is based on experience gained by the Mountain Coal Company since opening the West Elk Mine, recent geotechnical analyses, and advances in mining technology. Mountain Coal Company mined in the F-Seam from 1982 to 1991 from Lease D-044569 and C-0117192. This mining was only marginally successful. Poor mine roof conditions, sandstone channels, low coal areas, poor coal quality areas, and other unfavorable conditions have negatively affected mining and rendered this seam uneconomic under past and present market conditions. Approximately 180 feet below the F-Seam horizon lies the E-Seam. Mining plans in the E- Seam are presented on Map 51. The E-Seam in the west panels of the Apache Rocks permit revision area is planned to be mined prior to the B-Seam panels beneath. Approximately 400 feet below F-Seam and 200 feet below E-Seam lies the B coal seam. The minable B-Seam contains some areas of coal, particularly in Federal Leases C-0117192, COC- 54558, and COC-56447 where no minable E-Seam exists above the B-Seam. Also, in a portion of C-0117192, the F-Seam is mined out. In these areas, there is B-Seam minable reserves which, when mined, will not significantly affect the minability of the other seams. Recovering the two economically minable seams in the West Elk Mine block and potential . interactions, create complexity when trying to evaluate mining scenarios, whether for each seam or multiple seams. 2.05-3 8/93 Stip. J8;