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surface facilities are complete. Initial mining will be at the <br />very western area of the property where only two sublevels will be <br />used. Mining of these two sub levels will allow the testing of <br />equipment, training of surface and subsurface personnel, and <br />determination of such factors as distance between sublevels, caving <br />characteristics, etc., to be used in the detailed mine design. The <br />resC of the first panel will t>e developed using factors obtained <br />from the first two sublevels. <br />As stated above, early development will be done without fluming, <br />awaiting completion of dewatering facilities. Experience at the <br />Weststar Ltd.-Balmer Mine has clearly shown the cost benefits of <br />fluming the coal are as great as monitor mining itself. Therefore <br />the mine design will optimize the use of flumes. <br />After study of advancing systems versus a full-retreating system <br />the later was found to offer the best economics despite the need <br />for more initial development. Approximately ten years production <br />lies above portal entries and can be flumed to the dewatering <br />station on the surface. <br />Development coal will be transported by truck to an existing <br />general loading facility near Lacy, Colorado, operated by the <br />Denver Rio Grande Railroad. A :>pecial unit train load out facility <br />will be constructed on NCIG-owned property at a later date. This <br />facility will be covered by a :subsequent permit period. <br />In the early stapes of development emphasis will be placed on <br />completion of the panels and sub-levels to the west where the <br />initial production operations are planned. Development operations <br />will also be ongoing in the east main mine as a considerable amount <br />of development work will be required to bring this portion of the <br />mine into production readiness. As development continues to the <br />east, the Wheeler seam splits into the Wheeler and Lower Wheeler. <br />The intervening rock between the seams will be cut to provide cross <br />• <br /> <br />NCIG - Coal Ridge #1 4-14 ABCj1145/910509 • <br />