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Sarimr • 2.05.3 development from the point where the tttaitts tttm to the west will be in [he D Coal Seam, development work will also involve mining of the recoverable coal reserves within the mine development areas. AU proposed D Seam development is designed to accommodate possible future longwall mining of cwTently unleased Federal coal reserves to the north and west. OMI submitted an application for the Federal Coal Lease in August 1977 and the required Environmental Impact Statement was completed and agency (BI.M/USFS) decision docutrtents were published in March 2000. Lease approval and issuance are anticipated in second quarter 2000. Proposed future longwall operations in the D Coal Seam will be similar to those previously discussed for the B Seam The location and configuration of the Elk 4eek Mute poaak and azsociated surface facilities ate shown on the General Facilities Map, (Map 2.05-M1). The main decline entries, maim entries extending to the west, and longwall panels are shown on both the General Facilities Map, (Map 2.05-MI), and the Mine Platt Map, (Map 2.05-M2). Proposed development mining within OMI's privatelyFheld fee coal reserves is differentiated by notation on the Mute Plan Map from po[entia! future tnirting in the tuileased Federal coal reserves to the north and wes[. Muting in the D Seam is cturentlyplanned to extend under auras of up to 2,500 feet of cover. Operating experience in the initial deep cover areas will detemtute whether mining can be extended further for subsequent longwall panels. V(rith high productivity longwall mining, coal recovery of 75 percent or greater is anticipated and subsidence factors, including angle of draw and surface subsidence limiu, should be sirttilar to those previously detetxnined for the B Seam based on subsidence analyses (Abel, 1998) for the D Seam operations inchtded in Exhibit 2.05-E2, Geotechnical Design and Stability Analyses. Elk Creek Coal Handling, Support, and Ancillary Facilities • Goal from other mines is the aura maybe hauled to the Ells Leek facilities to be stockpiled and loaded out through the batch-weigh train loadout. Goal hauled to the facilities for loadout is delivered from State I~ighway 133. The coal haul tntcks use a designated haul road to deliver coal to the stockpile areaz or co the dump station. Typically, 28•ton capacity, 18-wheel end- or belly-dump trucks deliver coal from ouuide sources to the facilities. Smaller ID-wheel end-dump trucks that haul about 10 tons may also be used occasionally. Coal from the Sanborn Creek or Elk Creek Mutes will typically be placed in stockpile but may ako be routed directly to the coal storage silo or batch-weigh train loadout. Coal will normally be transferred from the mines to stockpile by conveyer. Overland conveyors will tun from both the Sanborn Creek and Elk Creek Mme portak to Stacking Tube No. 1 and the main Elk Creek coal stockpile. A transfer station on the Sanborn Creek Mme overland conveyor will also allow coal to be routed to the East Yard coal stockpile stacking conveyor. Modifications to the surface con! and mine waste handling systetrts in conjunction with the mine expansion initiated in 1995 included: • Modification of the Sanborn Creek Mute overland conveyor to increase capacity to a ntarorrnttn of 4,800,000 tons per year • Extension of the existing Elk Creek culvert to the north • Grading of present Elk Creek coal stockpile area to extend it to the north, east, and west • Clearing of the lower valley slopes to provide for dead coal storage • Construction of two coal stacking tubes and a coal distribution system • Installation of a sub-grade coal reclaim system from the stockpile area to the present dump station PR04 2.05-7 Revised August 2000