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Chapter II <br />Although there are other coal seams in Coal Basin, such as the Placita Seam (which <br />is above the Middle bed), they are not considered to be commercially minable. <br />The U.S. Bureau of Land Management estimates Recoverable Reserves for federal <br />leases which Mid-Continent anticipates mining during the life of operations total <br />36,650,000 tons; in addition, estimated recoverable reserves of fee coal total <br />2,550,000 tons when calculated according to the BLM guidelines for estimation of <br />recoverable reserves. The total estimated recoverable reserves for the life of <br />operations at Coal Basin: 39,200,000 tons.* <br />Estimated life of the operation, assuming an annual production of 1 million tons, is <br />approximately 39 years from the time of this permit application submittal. <br />Production and actual recovery of coal reserves depends upon significant factors <br />which are largely beyond the control of the operator, namely market and geologic <br />factors. Intense faulting, igneous intrusives and the extreme depth of cover are <br />significant determinants of the rate and ratio of production, and require constant <br />adaptation of the mine plan in response to the actual geologic conditions <br />encountered as mining progresses. <br />The competitive and volatile nature of the present metallurgical coal market <br />exercises signicant influence over the mining operation as well, and requires that the <br />operator be readily adaptable to both heavy demand, and constrained demand, for <br />coal. Market demand determines not only the volume of coal produced, but also <br />determines the rate of production for each of the two coal beds being mined. <br />Appendix II-B-1 discusses at greater length the geologic and market factors which <br />bear on mine planning. <br />B. OPERATION PLAN -PERMIT AREA. <br />1. Production Methods and Equipment. <br />Mid-Continent utilizes both advancing and retreating configurations of longwall <br />mining and continuous mining in the Coal Basin operations. <br />The mining sequence entails driving main entry slopes with continuous mining <br />machines, and then establishing either longwall faces or room-and-pillar sections. <br />In addition to the actual cutting of coal, operations include the transport and <br />preparation of the coal, and other essential support activities which take place both <br />underground and on the surface. <br />* Clean coal tonnages (i.e., after "washing" to discard rock/materials from raw <br />coal. <br /> <br /> <br />