2008-04-22_PERMIT FILE - C1981017 ‎(11)‎

• Permit No: C1981017
• IBM Index Class Name: PERMIT FILE
• Doc Date: 4/22/2008
• Section_Exhibit Name: Introductory Items
• Media Type: D
• Archive: No

During the preceding permit term (1983-1988) the operations were modernized to allow
for greater efficiency. Although the modernization program is not yet complete, the
. operation has changed substantially and major facets of the modernization program
are operational.
Coal Seams
Mining operations will be conducted in the two commercially minable coal seams of the
Mesaverde group located in Coal Basin. These seams are the Coal Basin seam
(B-bed); and the Dutch Creek seam (Middle bed). The Middle Bed overlies the B Bed
stratigraphically by about 450 feet. The coal seams are believed to be continuous,
except for some faulting, within the mine plan area.
The coal seams outcrop along the sides of the Basin at elevations ranging from
approximately 9,500 feet to 10,700 feet.
In certain locations the B Bed, the lower seam, is split by an igneous intrusion, and the
lower coal portion is referred to as the A seam.
Although there are other coal seams in Coal Basin, such as the Placita Seam (which is
above the Middle bed), they are not considered to be commercially minable.
Production
• The U.S. Bureau of Land Management estimates Recoverable Reserves for federal
leases which Mid-Continent anticipates mining during the life of operations total
36,650,000 tons; in addition, estimated recoverable reserves of fee coal total 2,550,000
tons when calculated according to the BLM guidelines for estimation of recoverable
reserves. The total estimated recoverable reserves for the life of operations at Coal
Basin: 39,200,000 tons.
It is anticipated that annual production will range from 700,000 to 2,500,000 tons per
year of clean coal during the five-year permit term (1988 - 1993), and the total
anticipated production for the 5 -year permit term is 3,500,000 to 11,500,000 tons of
coal.
Estimated life of the operation, assuming an annual production of 1 million tons, is
approximately 39 years from the time of this permit application submittal. ,
Rates of production and the duration of the mine life depend on market conditions and
geologic factors. Geologic factors include intense faulting, igneous intrusives and the
extreme depth of cover.
The competitive and volatile nature of the present metallurgical coal market exercises
signicant influence over the mining operation as well, and requires that the operator be

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