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RULE 2 PERMITS <br />The Williams Fork Formation is the predominant coal-bearing formation in the Mesa Verde Group. Mesa <br />Verde coals associated with the Fairfield Group, the coal-bearing zone above the Trout Creek Sandstone, <br />rank in quality about midway between bituminous and sub-bituminous. Although the Twenty Mile <br />Sandstone Member is a regional aquifer noted within the Williams Fork Formation in the Craig, Hayden <br />and Steamboat Springs area, a facies change within the Williams Fork Formation has eliminated the <br />Twenty Mile Sandstone in the Danforth Hills Area. <br />Structure <br />The area around the mine is dominated by the Axial Basin Uplift, an anticline, or arch, which is a <br />southeastward extension of the larger Uinta Mountain Arch. The Axial Basin anticline is an asymmetrical <br />fold, the axis of which trends north 60° west, with strata dipping (inclining) steeper on the south side of <br />the axis than on the north. The south flank of the anticline has several secondary folds trending <br />subparallel and at approximate right angles to the main anticlinal axis. In general, the rocks of the broad <br />anticline have not been stressed sufficiently to cause them to break severely, but a few discontinuous <br />normal faults trending primarily parallel to the anticlinal axis are found in the area. <br />The structure of the permit area is geologically simple. The axis of the Collom syncline, a downward fold, <br />passes through the permit area as shown on the Geology Map (Map 7). Bedding orientation, as measured <br />on surface outcrops, generally has a strike of N 70° W and is characterized by dips from nearly horizontal <br />to as much as 20* to the north. As the mine advances southward, the structure is influenced by the Elkhorn <br />Syncline and a change in attitude of the structure occurs resulting in an eastward dip and nearly north-- <br />south strike. Local deviations in this general trend are the result of discontinuous minor folds resulting <br />from differential compaction. <br />During geologic mapping, there was no evidence of faulting in the rock units within the mining area; <br />however, some linear features that may be fault controlled were observed on aerial photographs of the <br />property. Such lineations may also be related to joints (fractures without appreciable movement) in the <br />rock. Three major joint trends that generally coincide with these lineations were observed within the <br />permit area. These are nearly vertical or vertical and strike approximately north 70° west, north 45° west, <br />and north 30° east. In surface exposures, sandstone exhibits joints more readily than highly oxidized and <br />weathered coal beds do; however, both have undergone similar stresses and have developed similar <br />readjustment features that are apparent in the subsurface. <br />The site specific stratigraphy is described in Exhibit 6, Geological Information, and is graphically shown <br />on the Geologic Cross Section A-A' (Map 8) and the Geologic Cross Section B-B' (Map 9). Three <br />additional geologic cross sections (C-C', D-D', and E-E') that show the coal seam geometry and pit limits <br />are provided in Map 9A. The topographic locations of the geological cross sections are found on the <br />Geology Map (Map 7). <br />The coal seams to be mined at the Colowyo operation are the "Y3",46Y26,64X6,44A264,66A346,4B 146, "C", "D", <br />"E", and "F" coal seams. These coal seams are found in the Williams Fork Formation and lie within a <br />sequence of sedimentary rocks characterized by sandstones, claystones, siltstones, shales and carbonous <br />and silty shales. This sedimentary sequence is typical of cyclothems deposited along the linear clastic <br />shoreline located at the western edge of an epicontinental seaway which was located in interior western <br />North America during most of Late Cretaceous time. <br />The analyses of the various coal seams to be mined are shown in Table 2.04.6-1, Typical Coal Seam <br />Analyses. <br />Rule 2 Permits 2.04.6-2 Revision Date: 6/23/08 <br />Revision No.: MR-91