2012-04-20_REVISION - C1981012 ‎(2)‎

• Permit No: C1981012
• IBM Index Class Name: REVISION
• Doc Date: 4/20/2012
• Doc Name: Preliminary Adequacy Review
• From: DRMS
• To: New Elk Coal Company
• Type & Sequence: PR4
• Email Name: JRS
• Email Name: DIH
• Media Type: D
• Archive: No

Rule 2.03.6 — Right of Entry
3. With the submittal of PR -04, NECC provided a copy of the "Proposed Amendment and
Expansion of the NECC Coal Lease ", which was submitted to the Division of Parks and
Wildlife. While this information shows that NECC has applied for a lease amendment for the
permit expansion area, it does not grant NECC legal right of entry into the permit expansion
area. Additionally, the Division cannot propose a decision until it receives a copy of the
new /amended coal lease and right of entry information. Please provide the Division with three
copies of the new /amended coal lease, upon approval, for insertion into the permit document.
Rule 2.03.10 — Identification of Other Licenses and Permits
4. Based on the information provided with PR -04, it appears as though NECC plans to have a
maximum annual coal production of 3 million tons. The two air pollution permits, issued by the
Air Pollution Control Division (APCD), show a maximum annual coal production of 1.92
million tons. These permits are contained in Exhibit 23. The first permit (84LA074F(1), issued
on 13 July 1992) is for the coal prep plant and coal washing and the second permit
(84LA074F(2), issued on 13 July 1992) is for the refuse pile. These permits appear to be out of
date and do not allow for coal production of 3 million tons, as shown on permit page 2.05 -3a.
Please review the mine's air pollution permits and submit the most recent permits for inclusion
into Exhibit 23 of the permit document.
Rule 2.04.4 — Cultural and Historic Resource Information
5. During the completeness review, the Division notified the Colorado Historic Society (letter dated
24 February 2012) of the proposed increase to the permit boundary at the New Elk Mine and
requested their comments. On 13 March 2012 the Colorado Historic Society (CHS) responded
to the Division's request (letter attached). This letter was forwarded, via e -mail, to NECC and its
consultants on 19 March 2012. In the letter the CHS stated that there was no cultural resources
survey completed on the permit expansion area. CHS may have erroneously concluded that the
structures on the Map 20 series were new construction, which may have the potential to affect
• historic properties. Although NECC is not planning any new surface disturbances in PR -04,
future revisions are planned which may include surface disturbances. Please provide the
Division with a discussion of NECC's plans to perform a cultural resources survey or, if no
survey is planned, the reasons NECC believes that such a survey is not warranted.
Rule 2.04.6 — Geology Description
New Elk Mine PR -04 PAR Letter
Page 2 of 7
6. Based on the expanded permit area and proposed change to the mine plan, especially in the Blue
Seam, please update the geology description in the Permit document to include these areas.
Please include the information required in Rule 2.04.6(3).
7. Pursuant to Rule 2.04.6(3), please include drill logs for exploration holes completed in the new
permit area that show the lithologic characteristics, physical properties and thickness of each
stratum which may be impacted.
8. Please provide chemical analyses for all of the coal seams proposed to be mined in the expanded
permit area, as shown on Map 3, especially for the extensive Blue Seam coal that will be mined.
2 20 April 2012