2012-03-02_PERMIT FILE - C1981012

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Exhibit 40 - Rail Loadout at Jansen Wildlife All natural wildlife habitats within the permit area have been removed by previous loadout operations. The site is fenced to eliminate assess of domestic animals and big game. Small mammals, amphibians and reptiles, and avian species can travel onto the site from the Purgatoire River riparian area adjacent to the south and east. OPERATIONS AND RECLAMATION PLAN Operations Plan The existing industrial site lends itself well for coal loadout operations. The existing facility includes site access, railroad tracks, retaining walls, office building with city water septic/leach field, and site fencing. NECC added a truck scale, coal stockpile storage area, new rail system, coal reclaim hopper, coal conveyor belt with transfer points, loadout bin, and electric power line. A four -foot high wind screen was installed on the five -foot retaining wall on the north side of the coal stockpile area. Table 2 below has a list of equipment and associated dimensions. All facilities are shown on Figure 2 and have been installed to accommodate coal shipments. Coal is trucked east on U.S. Highway 12 from the New Elk Mine to County Road 63.9. From County Road 63.9, the existing private driveway to the site is used (Figure 2). The only modification required to these existing roads was a turn lane onto County Road 63.9 from Highway 12 that was installed by the Colorado Department of Transportation. The existing access road to the site is private and is suitable for coal truck access during operations. As coal trucks enter the site through the main gate, they cross the scale for weight measurements and loop through the coal stockpile area for unloading. No internal site roads will be necessary for truck traffic. Initial operations during startup of the mine will include a few coal truck trips per day to the loadout site. As mine production increases to 1.1 million tons in mid 2012, 80 to 100 coal truck trips per day will access the loadout site. At this production level, two unit trains per week will be shipped. Coal is stored in the 25,000 ton stockpile. A front -end loader is used to transport coal from the stockpile to the conveyor hopper. The 2,740 foot long covered conveyor that discharges into the loadout bin has three sections with transfer points (Figure 2). Water sprays are installed at conveyor transfer points and water is used as necessary to reduce fugitive dust from the trucks and coal stockpile. The City of Trinidad will supply water through the service already provided to the site. NECC constructed approximately 4,550 feet of new standard gauge rail on the site. Part of the new rail system required removal of approximately 550 feet of existing rail in order to load coal from the stockpile onto the conveyor hopper (Figure 2). The new rail system interconnects into the existing rail (see Figure 2 Inset -New Railroad Line Interconnection) and terminates at the load out bin (Figure 2). The new rail system provides NECC efficient loadout capabilities. The site has been graded nearly flat to optimize previous loadout operations with a slight grade from north to south. Stormwater is contained by a small berm (approximately two feet high) along the southern edge of the property and grading along the north properly boundary prevents run -on. NECC will maintain drainage patterns and the berm so any stromwater runoff will be contained in a series of sumps along the southern properly boundary as shown on Figure 2. As the site consists of alluvial gravels, infiltration of stormwater will be high and the small area of the site (10.5 acres) will reduce runoff potential. This alternate sediment control will eliminate runoff from a 10 year 24 hour storm. MR -106 - 6 - 01/23/2012