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C- 1981 -022 <br />PR -7 Findings <br />October 4, 2012 <br />Summary <br />The Review Process <br />The Sanborn Creek and Elk Creek Mines, operated by Oxbow Mining, LLC (OMLLC), are <br />located in Delta and Gunnison Counties, adjacent to the town of Somerset on State Highway <br />133. <br />The original permit under the Colorado Permanent Regulatory Program was issued to U.S. Steel <br />Mining Company, Inc. on October 11, 1983. Kaiser Coal Corporation was operator on the <br />property from 1986 to 1990. In 1990, under Succession of Operators No. 1 (SO -01) their permit <br />was transferred to Somerset Mining Company and Somerset completed the permit renewal (RN- <br />01) for another five -year permit term. That permit period initiated October 11, 1988 and expired <br />October 11, 1993. <br />Permit Revision No. 1 (PR -01) was submitted to the Division on June 4, 1990 to open a new set <br />of portals for the Sanborn Creek Mine accessing the C seam and subsequently ramping down to <br />the B seam. This revision was approved on March 27, 1991. The permit area was increased by <br />962 acres to a total of 3737 acres, 1608 acres of which were private land and 2129 acres of which <br />were federal land. Of the 962 acre increase in the permit area, 796 were private and 169 were <br />federal. <br />Permit Revision No. 2 (PR -02) was submitted to the Division on April 13, 1992 to add the <br />Sanborn East Federal Coal Tract to the mine plan. The Division approved the permit revision <br />No. 2, with a stipulation, on September 25, 1992. OSM approval was received by the Division <br />on March 19, 1993, and final approval of PR -02 was thereby issued. This revision increased the <br />permit area by 1792 acres, including 70 acres of private land and 1722 acres of federal land. The <br />total acreage of the permit area at this point was 5529 acres, 1678 acres of private land and 3851 <br />acres of federal land. <br />The permit was transferred from Somerset Mining Company to Pacific Basin Resources on <br />August 31, 1995, through Succession of Operator No. 2 (SO -02). At that time, the name of the <br />mine was changed from the Somerset /Sanborn Creek Mine to the Sanborn Creek Mine (NC -01). <br />Permit Revision No. 3 (PR -03) was submitted to the Division on May 13, 1996. The operator <br />requested, through this revision, to increase the permit area by 3,518 acres, to a total of 9,047 <br />acres. Of the total permit acreage, 3,553 acres were private and 5,494 acres were federal. The <br />increase in acreage was to incorporate the acquisition of the 160 acre Eastern Lease <br />Modification, a 40 acre right -of -way and a permit boundary adjustment. Mining would continue <br />in the B coal seam. PR -03 was approved on October 14, 1996, with stipulations numbers 21, 22 <br />and 23 attached. <br />Succession of Operator No. 3 (SO -03) transferred the permit from Pacific Basin Resources to <br />Oxbow Carbon & Minerals, Inc. This transfer was approved on February 20, 1997. <br />6 <br />