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Chapter II <br /> The Estimated Area for Life of Operation extends on both sides of the Huntsman <br /> Ridge, and encompasses those areas which overlie the coal reserves in which <br /> mining will take place, as well as those areas which contain the surface facilities of <br /> the operation. (Exhibit 11-A-1). <br /> The coal reserves extend west and south of the Huntsman Ridge, and mining <br /> follows the coal reserves to the west and south of Huntsman Ridge. <br /> Surface facilities and portals are located on the east side of the ridge within the Coal <br /> Basin. The basin extends over an area of approximately 26 square miles. <br /> Minimal surface activity is expected for the area west of Huntsman Ridge during the <br /> permit term. Mid-Continent would like to institute a program for coal degassification, <br /> which would entail installation of gas wells above the coal seams, and support of the <br /> gas wells would require a light use road. However, the plans are in abeyance at the <br /> time of the permit application submittal due to economic conditions. <br /> In addition, Mid-Continent plans to extend the Adit/Rock Tunnel to the west side of <br /> Huntsman Ridge to allow an escapeway and ventilation portal. Mid-Continent <br /> received a Temporary Revision Aug. 13, 1985 permitting exploration activity in <br /> conjunction with extension of the adit (expiration of the exploration permit: <br /> 12/31/85). <br /> Completion of the Adit/Rock Tunnel extension project depends upon economic <br /> conditions. The surface disturbance which would occur with this project has not yet <br /> been permitted, and Mid-Continent will seek the required approval through a <br /> revision to the permit at the appropriate time. <br /> b. Anticipated Annual and Total Production . <br /> Mid-Continent anticipates mining from 700,000 to 2,500,000* tons of coal per year <br /> from its Coal Basin mines during the life of operations. <br /> Mining operations will be conducted in the two commercially minable coal seams of <br /> the Mesaverde group located in Coal Basin. These seams are the Coal Basin seam <br /> (B-bed); and the Dutch Creek seam (Middle bed). The Middle Bed overlies the B <br /> Bed stratigraphically by about 450 feet. The coal seams are believed to be <br /> continuous, except for some faulting, within the mine plan area (Exhibits II-A-2 & <br /> 11-A-3). <br /> The coal seams outcrop along the sides of the Basin at elevations ranging from <br /> approximately 9,500 feet to 10,700 feet. <br /> In certain locations the B Bed, the lower seam, is split by an igneous intrusion, and <br /> the lower coal portion is referred to as the A seam. <br /> * Clean coal tonnages. <br /> 7 <br />