2010-11-16_PERMIT FILE - C1996083A (26)

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Volume III, Exhibit 1 • Decision Memo Bowie Resources, LLC Hubbard Creek Ventilation /Emergency Escape Shaft USDA -Forest Service Grand Mesa-Uncompahgre-Gunnison National Forests Paonia Ranger District, Colorado Background Bowie Resources LLC (Bowie) operates the Bowie #2 mine, an underground coal mine near the town of Paonia, Delta County, CO. Bowie mines coal from several federal coal leases, some of which underlie National Forest System (NFS) lands. On March 8, 2007, Bowie submitted a proposal for constructing ventilation shaft /emergency escape shaft on NFS lands. The purpose of the shaft is to provide the Bowie #2 mine with sufficient ventilation for underground operations, as well as providing needed facilities should an underground emergency occur. Proposed Action The FS proposes to authorize Bowie to conduct surface operations associated with accessing, constructing, drilling, operating, and reclaiming aventilation/emergency- escape shaft within T. 12 S., R. 91. W., Section 34 and 35, 6th PM, Delta County, Colorado, as described in detail below. This proposal includes the following, which would be performed by Bowie (additional details are described below): • Clearing and leveling a 1.8-acre site for the access road and drill pad (of which 0.6 acres have been previously disturbed). • Moving in, preparing site, and rigging up drilling equipment (approximately 5 weeks in duration). • Conducting drilling operations (drill-shoot-muck method) on an 18-foot diameter ventilation/escape shaft, drilling to an approximate depth of 600" (approximately 36 weeks in duration). • After shaft is no longer needed for mining purposes (approx. 2015), it will be backfilled with rock, a cement plug poured, and the site recontoured and reclaimed. Project-specific variances on the follow lease stipulations are required if the proposed action is approved: • No fuel storage is allowed within 500 feet of any water bodies. • A 1/8 mile buffer zone will be protected on either side of riparian zones. No surface disturbances, except surface subsidence, will be permitted within these buffer zones. All unavoidable surface disturbances will require approval of the BLM and/or the USFS authorized officer. Through the analysis and project record these variances will need to be consistent with federal laws and the GMUG Forest plan and acceptable based on environmental review. The shaft site is located in oak brush habitat, immediately adjacent to Hubbard Creek. The site is situated above the floodplain; however a portion of the proposed pad site is within the Water Influence Zone (WIZ). Approximately 1.8 acres will be cleared and leveled to allow for drilling operations, permanent facilities, and other requirements (sediment pond). After drilling operations are complete, interim reclamation will pull the pad site back to approximately 1.0 acres. Pad construction is expected to take