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FROM <br />FRX N0. 17198464975 Dec. 18 2003 09:23RM P4 <br />Rule 2 -Permits <br />• <br />2.05.2 OPERATIONS PLAN -LIFE OF MINE <br />(t) Production Methods and lvquipment <br />The life of nrine plan is shown on Map 2.05.3-1, Minc Plan. This plan represents approximately <br />twenty years of mining reserves. Overall, the mine will have the capacity to produce <br />approximately 2.5 nullion tons of coal annually. The life of mine permit area contains <br />recoverable reserves in excess of 50 million tons. The operation and produc-lion schedule will be <br />dependent upon conditions encountered during early stages of mining and the succcssiu] <br />marketing of coal to potential customers. <br />LCC coal production will be accomplished by the most efficient means to maximize the coal <br />resource and mittimizc the effects nn the cnviromnental resources. As a result, both surface and <br />underground room and pillaz mitung will be conducted simultaneously to extract coal tT{)nl the <br />Ciruela, Primero, and other minor seams in the upper stratigraphic column of the properly. <br />Secondary ar retreat mining is not proposed at this tithe. <br />(2) Operations Description <br />• The life of mine operation plan for the Lorencito Canyon Minc is shown on Map 2.05.3-1, Mine <br />Plan. This map shows the planned schedule for the mine advance tluoughout the life of mine. <br />Separate foe-yeaz renewals will be obtained and a performance bond will be posted as <br />necessary. The none lease area comprises 17,8fi2 acres while the initial permit area is 3,142 <br />acres. The actual surface disturbance azea associated with the operations will be approximately <br />655 acres during the first five years of musing. <br /> <br />Life of mine operations will include underground mining at the P I/ T'2, P3, R1 /It2, and R3/R 4 <br />portal sites (Map 2.05.3-1). Surface mining will also be conducted throughout the mine plan in <br />the northern portion of the property as indicated on Map 2.05.3-1, Mine Plan. Other surface <br />mine coal is available on the property, as well as coal that can be recovered by the high wall <br />mining method. Lile of mine support facilities will include haul and access roads and shuttle <br />train loadout facility. Areas to be mined by year is indicated on Map 2.05.3-1. Table 2.05.2-1 <br />summarizes projected disturbance areas for the first permit term ('Yeazs 1 & 2) and part of the <br />second permit term (Years 3-7). Tab1e2.OS.2-la stunmarizes projected water needs for the life of <br />the operation. <br /> <br />2.05-Z (Revised 12!18/03) <br />