2012-02-13_REVISION - C1981012 (8)

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(2) Operation Description The aerial extent of existing underground mine workings in the Allen Seam is shown on Map 22 Mine Progress Map. Surface facilities associated with the underground mining are shown on Maps 11 Sheets 1 -3 and Map 12. Future mining is subject to conditions encountered. Mining is currently planned for 2012 -2015 within the area bounded by the permit boundary as shown on Map 3 -2011 Mine Plan. Mining for 2012 -2015 is anticipated to occur in the Allen seam north of the Purgatoire River and East to the permit boundary. Allen seam mining will then turn south. Mining is planned in the Apache seam south and east of the East Portals Mining in the Allen and Apache Seams will not overlap. Blue Seam mining will proceed east to the permit boundary and then turn south. Continued development and operations of the New Elk Mine within the lease area will require additional permit revisions to complete full recovery of the coal reserve. Minor additional surface disturbance may be associated with the continued operation of the mine. This surface disturbance, if required, will provide for ventilation and escapeways as development progresses away from the main portal area to maintain continued production and safe working conditions. The total affected area based on the PR -04 mine plan and historic mining is 5391.1 acres. The mine permit boundary totals 5830.7 acres which includes the 10.5 acre Jansen Loadout. Long term mine plans are shown on Figure 2. Life of mine acreage as shown on Figure 2 totals approximately 19,050 acres. Future revisions to the permit may propose mining in the Maxwell seam. 2.05.3 Operation Plan— Permit Area The planned underground workings are show on Map 3 Mine Plan. The generalized stratigraphy of the Allen, Apache and Blue Seam are shown on Figure 1. The mine was temporarily closed and sealed in 1989. Dewatering ceased and the lower areas of the mine were gradually flooded. Phase I of resuming operations required remotely pumping mine water from the East Portal airshaft and other boreholes using surface- powered pumps. Approvals for this process were granted in 2008 and dewatering started in December of 2008. Phase II reestablished mine ventilation by breaching temporary seals at the East and West Portals and Apache Canyon, and reinstallation of fans at the East Portal and West Portal airshafts. Phase III is the development of entries to establish ventilation at the Apache Seam level. Phase IV is the active mining of coal. The planned development of mains and panels will occur as shown on Map 3 Mine Plan. Mining in the Allen Seam began in January 2012. Mains in the Allen Seam will be developed northeast off the rock slope bottoms and then the mains will turn to the east to avoid old works. Mains will be developed to the south and submains will be driven to the northwest off of the east mains Panels will be driven off the northwest sub mains, two panels to the southwest and four panels to the northeast. The south mains will be turned to the east and then panels and mains will be developed to the south. The Allen Seam mains are development only. No secondary mining is planned in any area where protection from subsidence of surface structures is required. The Apache Seam will be mined where shown on Map 3. The mains are development of room and pillar only with no pillaring. Multiple panels are planned off the mains. No mining will occur within 150 ft of a gas well. Development only mining will occur within the pipeline protection corridor. Retreat mining resulting in subsidence is planned in areas within the panels as outlined in Map 3 Mine Plan. Mining in the Apache seam is a few years in the future so timing is not provided. TR -PR -04 2.05 -3 Revised 02/29/11