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I. PROCEDURES AND SUMMARY OF THE REVIEW PROCESS <br />WFC has applied for a Phase I and Phase II bond release under the Colorado Surface Coal Mining <br />and Reclamation Act. The mine is located in Montrose County, Colorado, on lands included <br />within: <br />Mine 1: <br />SW'/, Section 25, T47N, R16W containing 98.62 acres MOL shown on the USGS 7.5 <br />minute Nucla Quadrangle map. <br />Mine 2: <br />NW '/ Section 6, T46N, R15W <br />W '/2 NE '/o Section 6, T46N, R15W <br />W '/ SE '/ NE '/ Section 6, T46N, R1 5W <br />N %2 SE '/ Section 6, T46N, R15W <br />E %2 NW '/ Section 1, T46N, R16W <br />NE '/ Section 1, T46N, R16W <br />SW % Section 31, T47N, R15W <br />S '/2 Section 36, T47N, R16W <br />The above mentioned tracts of land, containing approximately 828.34 acres, are shown <br />on the USGS 7.5 minute Nucla Quadrangle map. <br />The total permit acreage for both mine areas is 926.96 acres. The SL-11 application requests <br />release for areas in Mine 2. The Phase I bond release request covers the reclamation work for <br />116.52 acres in Sections 6 and 31. An area of 300.04 acres in Sections 6 and 31 is included in <br />the Phase II bond release request. Maps prepared by WFC for these bond release areas are <br />labeled Maps R-1 and R-2 in the application. <br />WFC purchased the Nucla and Nucla East Mines from Peabody Coal Company and renamed <br />them the New Horizon Mines 1 and 2, respectively. The transfer of ownership and succession of <br />operator was completed on May 15, 1992. At this time, the New Horizon Mine 1 permit area <br />encompasses approximately 98.62 acres consisting of an area referred to as the Rice tract. The <br />Mine 1 area has been revegetated for longer than 10 years. The New Horizon Mine 2 area <br />encompasses approximately 828.34 acres. Approximately 653.5 acres will be disturbed from <br />mining or related activities at Mine 2. Surface mining operations are presently active at the Mine <br />2 area. <br />The mines are located in the Nucla-Naturita coal field. The New Horizon Mine 2 primarily <br />produces coal from the Lower Dakota coal seam and utilizes the Upper Dakota coal seam when <br />the seam is thick enough and of sufficient quality. The lower Dakota coal seam at New Horizon <br />Mine 2 ranges in thickness from 4.2 feet to 6.9 feet and is 99 feet above the top of the Burro <br />Canyon Formation. The coal dips 4.5° SW along a strike of N 45°W. <br />3