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INTRODUCTION <br />As of 1990, approximately 91% of Colowyo's annual production rate of 4.5 million tons per year is sold. <br />Colowyo has long term sales contracts with Colorado-Ute, Central Power & Light, and Colorado Springs <br />Municipal Power Authority. <br />Work Force <br />Presently, a total of 422 employees make up the full work force of Colowyo. These employees received in <br />excess of $17.5 million in salaries and wages during 1990, making Colowyo one of the largest employers <br />in Northwest Colorado. The entire Colowyo work force is located at the mine site with production and <br />maintenance shifts running 24 hours per day, 7 days a week. Approximately 66% of the employees live in <br />Moffat County of which most live in Craig, 33% in Rio Blanco County of which most live in Meeker, and <br />I% in Routt County. <br />Colowyo is very sensitive to the socio-economic impacts that coal mining has on the life in Moffat and <br />Rio Blanco Counties. Coal mining, farming, and ranching have been closely related in this area, since <br />before the early 1920's. Colowyo has and will continue to work closely with local government and other <br />organizations. <br />In 1975, at a cost of $125,000, Colowyo had a cumulative regional socioeconomic analysis prepared <br />covering approximately 36,000 square miles in Routt, Moffat and Rio Blanco counties for early <br />identification of potential problems and courses of action to mitigate growth impact. <br />Colowyo participates in the Moffat County United Way, BLM Advisory groups and other regional <br />advisory groups, etc. and continues to make its personnel available to assist local communities. Colowyo <br />has also contributed approximately $700,000 to assist various local county, state, regional, and national <br />clubs, charities, organizations, services, governments, agencies, etc. since 1975. <br />Colowyo also provided a $650,000 financing guarantee to the Riford Company to develop the Ridgeview <br />Subdivision. Approximately 75 houses and 20 townhouses were constructed in this development. <br />Taxes paid to Moffat County for calendar year 1990 amounted to approximately $1,360,000.00. For the <br />same year, production of coal from Federal Coal Leases No. D-034365, C-35874 and C-29224 resulted in <br />royalty payments of $10,727,000 to the Federal Government. The State of Colorado received over <br />$2,121,000 from Colowyo for the calendar year 1990 in the form of severance taxes. Colowyo also paid <br />$1,381,000 as Abandoned Mine Fund Tax and $2,170,000 as Black Lung Tax in 1990. <br />Colowyo has a complete program devoted to pre-employment training. Currently, all new Production and <br />Maintenance employees receive 40 hours of pre-employment courses on first-aid and accident prevention. <br />Colowyo also exceeds applicable standards for annual retraining and refresher courses. <br />Size and Configuration of Operations <br />Colowyo produces coal from Federal Coal Leases No. D-034365, C-35874 and C-29224 and State of <br />Colorado coal Lease 257/135. Coal Lease No. C-35874 is an assignment reached in agreement with <br />Consolidation Coal Company (Consol) to allow Colowyo to mine the northwest corner of Section 11. <br />Lease No. C-29224 is also a lease assignment for Federal coal in the Danforth No. 1 Coal Lease in <br />Section 11 and 15. 257/13S is a lease assignment obtained from Consol for State of Colorado Coal. <br />Colowyo incorporated the mining of Section 11 into the current permit by a Technical Revision approved <br />on January 25, 1989. At full production, Colowyo will mine 8 major coal beds ranging from approximate <br />Introduction 2 Date Revised: 6/23/08 <br />Revision No: MR-91