2009-02-10_PERMIT FILE - C1981022 (5)

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Seam- 2.04.3 Hawk's Nest Mine - The Champion Coal Company, incorporated in 1922, purchased the existing • original wagon mine, named it the "Hawk's Nest Mine", and expanded the mine using room and pillar muung methods. The existing mine was sub-leased in 1932 by Mr. Clement Audin, who continued to work the mine, purchasing the lease in 1938 and subsequently purchasing Champion Coal Company in 1942. A second portal designated as the Hawk's Nest No. 2 Mme was developed in 1946 in the NW'/.SE'/4, Section 11, T1 3S, R90W in an area where roof conditions were better. The old portal and mine area, now designated as the Hawk's Nest No. 1 Mme was closed in 1947. In 1953, Mr. Ellis Axelson opened a new mine, the Black Beauty Mine, from a portal at the E-Seam outcrop located in the NE'/.,SE'/4, Section 10, TOS, R90W. A second portal, the East Oliver Portal, and the associated Oliver Mme were subsequently developed approximately 1,000 feet to the west of the original portal. The Oliver Mine extracted coal from both the D and E coal seams. In 1970, Western Slope Carbon, Inc. was incorporated and purchased the previously closed Hawk's Nest No. 1 and the active Hawk's Nest No. 2 from the Audin family and the Black Beauty Mine from Mr. Axelson. Insufficient capital forced the closure of the Hawk's Nest No. 2 Mine in 1970 and Western Slope Carbon focused it's efforts on renovation and expansion of the Black Beauty Mme, which was renamed the Hawk's Nest No. 3 Mme. Initial renovation activities includes development of bleeder entries and a new portal in the NW'/4SW'/4, Section 11, TOS, R90W to provide additional ventilation. In December 1974, Western Slope Carbon was acquired as a wholly owned subsidiary of Northwest Energy Company. The Hawk's Nest No. 2 Portal was re-designated as the East Portal, all existing surface facilities were replaced, and the underground workings were rehabilitated. In fall 1980, a portion of the Hawk's Nest Mme was converted from conventional room and pillar to longwall operations, the Hawk's Nest No. 3 Portal was re-designated as the West Portal, additional underground workings were rehabilitated, and the ventilation bleeder portal was closed. Mining operations in the Hawk's Nest Mme ceased in the mid-1980's and the mine portals were sealed, • surface facilities demolished or removed and associated disturbance areas were regraded and seeded in 1990 and 1991 by the State of Colorado. Somerset/ Sanborn Creek Mine Complex - In 1902, shortly after initial coal discoveries and development in the area, the Denver & Rio Grande Railroad was extended up the North Fork Valley to Somerset. With both the need for coal for the railroad and access to other markets, the Utah Fuel Company constructed a company town at Somerset in 1903 and opened the Somerset Mme from portals at the C Seam outcrop. In the 1920's approximately 300 miners produced 1,200 tons of coal daily from the Somerset Mine. The Somerset Mme Portals and associated surface facilities, located in the SW'/4SE'/4, Section 8, TOS, R90W, occupied the area of the present OMI surface facilities. The Somerset Mme was a major producer in the valley, operating continuously through the 1980's under a series of owners including Utah Fuels (approximately 1903 through 1950); Kaiser Steel (1951); Minerals Development Corporation (1952 - 1955); U.S. Steel Mining Company (1955 through 1985); and Kaiser Coal (1986 through 1989). Ongoing expansion of the Somerset Mine and associated surface facilities included development of surface facilities on Bear Creek in the 1960's and Hubbard Creek in the 1970's and 1980's; construction of a dump station and crusher installation in the early 1960's; and construction of a coal storage silo and new rail line in the late 1960's. Production from the Somerset Mme ceased in 1985 and the mine sat idle until 1990 when the mine portals were sealed and the associated disturbance reclaimed. In 1990, Somerset Mining Company developed and opened the new Sanborn Creek Mme on the C Seam This mine has continued operations through the present under a series of owners including; Somerset Mining Company (1990 through 1995); Pacific Basin Resources (1995 through 1996); and ONE (1997 through present). While ownership entities changed over the period from 1990 through • present, mine personnel and operations have generally remained stable. In the mid-1970's, modification of the existing railroad lines through the North Fork Valley and highway construction activities resulted in re-disturbance of portions of the Somerset Mme Facilities PR04 2.04-2 Revised August 2000