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RULE 2 - PERMITS <br />• Transfer Building <br />• Coal Stockpile and facilities pad <br />• Drainage and Sediment Control Structures <br />• Ponds and pump house <br />• 1,000,000 gallon water storage tank <br />During the initial permit term, it is anticipated that coal could be stored in on -site coal stockpiles <br />until haulage can be made to nearby customers by over - the -road tractor - trailer units. A more <br />detailed description of the surface facilities is provided in Section 2.05.3. <br />The PSCM operation under this permit application, including the production schedule and area of <br />underground disturbance, will be dependent on conditions encountered and information gained <br />during mining and the market demand for the coal. The annual production is expected to range <br />from 500,000 to 2,500,000 tons during the initial five -year permit term. If mining conditions, coal <br />availability and markets prove favorable, production could reach up to 12,000,000 tons of coal per <br />year. <br />Operation Description <br />Previous mining operations in the area include the Yoast Mine which adjoins the western boundary <br />of the permit area, and the Seneca II Mine which overlaps the eastern side of the permit area. These <br />surface mines recovered Wadge Seam coal from areas of near- surface reserves along the anticlinal <br />structures bounding the targeted PSCM reserves. The Yoast and Seneca II Mines ceased operations <br />once the economically recoverable near- surface reserves were depleted and have been reclaimed. <br />The PSCM will develop and mine the deeper Wadge Coal Seam reserves in the synclinal basin <br />between the former Yoast and Seneca II mines. Coal development and initial production will be <br />initiated near the eastern portion of the PSCM permit area using surface facilities located in the <br />Little Grassy Creek sub - watershed. Development and mining during the initial five -year permit <br />term will involve excavation of the portal face -up area, construction of limited surface facilities, and <br />exploratory development of mains, sub - mains, and sections. Surface facilities developed for the <br />first five -year permit term will be used to support initial exploratory development and the associated <br />limited coal production and would then also be utilized to support any subsequent future full -scale <br />mining operations. Future permit revisions will be prepared and submitted for CDRMS review and <br />approval to address any expansion and extension of development and mining activities beyond the <br />initial permitted exploratory development activities and for any additional facilities or disturbances <br />required in the future. Map 2.05.2 -M1, Life of Mine Plan Map, outlines the proposed development <br />areas for the initial five -year permit term. <br />New surface facilities in Little Grassy Creek watershed will include the mine portal face -up area, <br />temporary topsoil, two coal stockpile and coal handling facilities, maintenance facilities, roads and <br />parking areas, electric power substation, drainage and sediment control structures, material storage <br />yards, and other ancillary facilities needed to support the mining and related operations. Additional <br />surface and mineral rights were purchased from Grassy Creek, LLC in 2009. Part of the surface <br />property included the facilities that were permitted and used at the Seneca II mining operation. <br />These facilities are shown on Map 2.05.3 -M1B, Mine Facilities Map (North End). These facilities <br />will be used for the life of PSCM. <br />TR -01 -10 2.05 -5 Revision 02/11 <br />