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FROM FRX IJO. 17198464975 Dec. 18 2003 09:22AM P3 <br />Rule 2 -Permits <br />2.05 OPERATION AND RECLAMATION PLANS <br />2.05.1 OBJECTIVES <br />This section provides a description of the surface and proposed underground <br />operations, the associated surface support operations, and reclamation activities that <br />LCC plans to conduct at the Lorencito Canyon Mine Area. The Jeff Canyon Surface <br />Mine initiated construction of ancillary support facilities, during the third quarter 2001. <br />Coal mining began using the area mining method in October of 2001. The mine plan <br />was amended in 2002 to allow a combination of area and contour mining within the Jeff <br />Canyon reserve. <br />Depressed coal market conditions resulted in the temporary cessation of mining in June <br />of 2002. The mine continued to conduct contemporaneous reclamation of areas <br />already mined with a reduced work force during the remainder of 2002. In July of 2003, <br />with no change in market conditions, the decision was made to fill in the pit area and <br />slope the highwall to final contour. This was done in such a manner as to both meet the <br />requirements of final reclamation and allow the easy re~xcavation of the pit area and <br />rapid access to the mineable coal seams should market conditions improve <br />substantially. <br />In Octotser of 2003, with most of the backfilf and rough grading completed, the decision <br />. was made to classify the operation as `permanent cessation of mining' following <br />completion of final grading, topsoil placement, and seeding of all disturbed areas. In <br />addition, this will allow for bond reduction applications, and upon approval, reduction in <br />the bond amount held by the Division. <br />In December of 2003, a technical revision to the permit was submitted to update the <br />t.'vSt ,Tiiiiiiy tONOyiajJily auu rCCidmation pion. i he revision also reinstated the <br />reclamation bond requirement existing prior to the approval of Technical Revision No. 8, <br />a revision that will not be implemented with the mine in permanent cessation. <br />This was done with the understanding that the operation may be reactivated at a later <br />date should market conditions improve substantially. The operator would at that time <br />submit a permit revision start-up plan to the Division that would include updated mine <br />plans and schedules, bonding calculations, and upon approval, an updated bond. <br />Discussion contained in the currently approved permit document regarding active <br />mining (extraction of coat) pertains to operations conducted during 2001-OZ, is for <br />historical reference, and may be reviewed as part of the above referenced permit <br />revision. <br /> <br />2.05-1 ~ // ~ ~~ <br />