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• 2.05.3(2) <br />Mining and development is currently (December 1994) being conducted <br />in the B -Seam in Federal Leases C- 0117192 & D- 052501. <br />As of December 1994, B -Seam panels 1 through 11, 13 through 16 and <br />18 were compete, the First North Mains, Third West Mains and Second <br />North Mains are complete. Mining is progressing in Panel 17. <br />The approved B -Seam mine plan, (Map 9A Revised 03- 03 -94), provides <br />for the completion of and panels 12, 17, 19 and 20 which yields <br />about 16 additional months of mining (December 1994 though April <br />1996). <br />The Operator is proposing to mine additional coal lands in Section <br />20 and Section 16. Atlantic Richfield Company (ARCO) previously <br />controlled the coal lands in these sections. During 1994, the <br />Operator successfully negotiated the right to mine the B -Seam in <br />these areas with ARCO. <br />The proposed mine plan for the B -Seam provides for mining first in <br />• Section 20 and then in Section 16. Incorporating this additional <br />mining area into the permit will provide for up to 55 months of <br />production. The revised B -Seam Mine Plan (Map 9A) shows the layout <br />of the panels and the estimated time frame to complete each. <br />• <br />The Operator now projects approximately six years of remaining <br />mining (December 1994 through 2000). This is approximately 4.6 <br />years longer than the currently approved mine plan. The basis for <br />the time projection is an assumed annual production rate of 500,000 <br />tons per year. If this production rate increases or decreases the <br />duration of mining will also vary. <br />2.05 -7 Rev. 12 -29 -94 <br />