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• The only known mineral resource contained in the application area is coal. The coal deposits <br />occur within the Menefee Formation of the Cretaceous Mesa Verde Group and is within the <br />Durango Known Recoverable Coal Resource Area (KRCRA). <br />National King Coal is the only operating mine in the area at this time. There aze no known oil <br />and gas deposits in the proposed modification azea. However, oil and gas is known to occur in <br />the Point Lookout, Gallup, Dakota Sandstone and the Paradox Formations. <br />The proposed modification area is characterized by hilly plateau tops cut by one ephemeral <br />drainage. The elevation ranges from about 7,300 to 7,500. The geologic formation outcropping <br />in the area is the C1iffHouse Formation of the Cretaceous Mesa Verde Group and the overlying <br />Quaternary alluvial deposits. The coal proposed for mining is coal bed 1 in the Menefee <br />Formation that outcrops about 2 miles north ofthe proposed modification area in the Hay Gulch <br />drainage. <br />No quantitative data exists for subsidence on the proposed modification azea; however, the <br />surface effects of subsidence have been recorded on Federal leases P-058300, COC-29125 and <br />COC-49465 approximately 'h-mile north of the proposed modification area. The overburden <br />thickness ranges from 300 to 400 feet above coal bed 1 in the proposed modification area. <br />Subsidence is directly affected by the thickness of the coal seam mined (4 to 6 feet), the <br />overburden thickness, and overburden composition. <br />• A condition of approval of National King Coal's mine permit revision for Lease C-29125 and <br />subsequent permit revisions by Colorado Division of Minerals and Geology was that subsidence <br />would be monitored on a quarterly basis. The purpose of the monitoring was to determine if any <br />new subsidence was occurring and if the Huntington Ditch was being affected in any way. <br />According to National King Coal records (Second Quarter Monitoring, 1999), there are no new <br />subsistence cracks in the areas requiring monitoring. All areas, which lie above underground <br />support pillazs that have been removed, continue to be .monitored on a quarterly basis for <br />evidence of material damage to the surface. <br />Colorado Division of Minerals and Geology rules 2.05.6 and 4.20 require that "underground <br />mining activities shall be planned and conducted so as to prevent subsidence from causing <br />material damage to the surface." Material damage is defined in Rule 2.05.6 with respect to <br />subsidence as changes which prevent restoration of affected structures and with respect to <br />renewable resource lands; changes which disrupt an aquifer, or a rechazge azea to an aquifer, <br />which serves as a beneficial use of water; or changes which prevent restoration of productivity <br />for agricultural lands. <br />There are no active faults adjacent to or on the proposed modification area (Zapp, 1949). No <br />other geologic hazards aze known to exist. <br />• 6 <br />