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~ and otentiall y g y <br />I P y provided for increased facilit lon evit However <br />~ anticipated market conditions, which prompted the 500,000 ton per year <br />~ load-in technical revision, did not materialize and HGTI again placed the <br />facility in temporary cessation on October 14, 2001. <br />The Hayden Gulch Loadout is a strategic asset for HGTI and its parent <br />company, Peabody Energy Corporation. Since October 2001, HGTI and Peabody <br />have been exploring market opportunities that might include the loadout <br />facility. Peabody controls, or is actively pursuing the control of, <br />millions of tons to coal resources in Routt County, Colorado. Peabody <br />subsidiaries are conducting coal exploration (as of November 2007) at two <br />new properties, south and southwest of Hayden, Colorado, which could use <br />the Loadout facility as part of the transportation network to get the coal <br />to market. Consequently, it is not appropriate to terminate railcar <br />loadout operations at the facility. <br />Another opportunity would be to retrofit the facility to include a train <br />unloading and truck loading operation to assist Peabody to fulfill its <br />long-term contractual obligations to supply steam coal to the Hayden <br />Station Power Plant and allow Peabody to provide sufficient coal to meet <br />ongoing power generation requirements. Peabody currently fulfills its <br />contractual obligations to the Hayden Station with coal from the Twentymile <br />Coal Company's Foidel Creek Mine. Peabody looked at several transportation <br />alternatives for coal delivery from the Foidel Creek Mine to the Hayden <br />Station Power Plant. While truck haulage is the current means of coal <br />delivery, several safety, environmental and local citizen and government <br />concerns lead Peabody to believe that a rail delivery plan utilizing the <br />Hayden Gulch Loadout is the best option. Because the needed throughput was <br />significantly greater than that approved by TR-05, HGTI prepared a <br />technical revision (TR-06) that presented a new plan to retrofit the <br />Loadout facility. Under this plan (unloading coal from rail cars and truck <br />haulage for delivery to the Hayden Station), the existing facility would be <br />refurbished to handle approximately 2,000,000 tons of coal per year. <br />The unloading system approved by CDMG under TR-06 (in June 2005) included <br />the following components: <br />• An unloading hopper to unload rail cars. <br /> <br />MR-16 4 Revised 11/07 <br />