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C-1981-022 <br />RN-05 Findings <br />February 2009 <br />Summary <br />The Review Process <br />The Sanborn Creek and Elk Creek Mines, operated by Oxbow Mining, LLC (OMLLC), are located <br />in Delta and Gunnison Counties, adjacent to the town of Somerset on State Highway 133. <br />The original permit under the Colorado Permanent Regulatory Program was issued to U.S. Steel <br />Mining Company, Inc. on October 11, 1983. Kaiser Coal Corporation was operator on the property <br />from 1986 to 1990. In 1990, under Succession of Operators No. 1 (SO-01) their permit was <br />transferred to Somerset Mining Company and Somerset completed the permit renewal (RN-O1) for <br />another five-year permit term. That permit period initiated October 11, 1988 and expired October <br />11, 1993. <br />Permit Revision No. 1 (PR-01) was submitted to the Division on June 4, 1990 to open a new set of <br />portals for the Sanborn Creek Mine accessing the C seam and subsequently ramping down to the B <br />seam. This revision was approved on March 27, 1991. The permit area was increased by 962 acres <br />to a total of 3737 acres, 1608 acres of which were private land and 2129 acres of which were federal <br />land. Of the 962 acre increase in the permit area, 796 were private and 169 were federal. <br />Permit Revision No. 2 (PR-02) was submitted to the Division on April 13, 1992 to add the Sanborn <br />East Federal Coal Tract to the mine plan. The Division approved the permit revision No. 2, with a <br />stipulation, on September 25, 1992. OSM approval was received by the Division on March 19, <br />1993, and final approval of PR-02 was thereby issued. This revision increased the permit area by <br />1792 acres, including 70 acres of private land and 1722 acres of federal land. The total acreage of <br />the permit area at this point was 5529 acres, 1678 acres of private land and 3851 acres of federal <br />land. <br />The permit was transferred from Somerset Mining Company to Pacific Basin Resources on August <br />31, 1995, through Succession of Operator No. 2 (SO-02). At that time, the name of the mine was <br />changed from the Somerset/Sanborn Creek Mine to the Sanborn Creek Mine (NC-01). <br />Permit Revision No. 3 (PR-03) was submitted to the Division on May 13, 1996. The operator <br />requested, through this revision, to increase the permit area by 3,518 acres, to a total of 9,047 acres. <br />Of the total permit acreage, 3,553 acres were private and 5,494 acres were federal. The increase in <br />acreage was to incorporate the acquisition of the 160 acre Eastern Lease Modification, a 40 acre <br />right-of-way and a permit boundary adjustment. Mining would continue in the B coal seam. PR-03 <br />was approved on October 14, 1996, with stipulations numbers 21, 22 and 23 attached. <br />Succession of Operator No. 3 (SO-03) transferred the permit from Pacific Basin Resources to Oxbow <br />Carbon & Minerals, Inc. This transfer was approved on February 20, 1997. <br />4