PERMFILE42202

• Permit No: C1981044A
• IBM Index Class Name: Permit File
• Doc Date: 5/26/2006
• Section_Exhibit Name: Introduction
• Media Type: D
• Archive: Yes

INTRODUCTION
BTU Empire Corporation (EC) did submit a permit revision to Permit No. C-81-044. The permit revision allowed
the mining of the "E" Coal Seam located directly under the "F" Coal Seam, previously mined by EC. With that
application, EC prepared a detailed mining and reclamation plan to effect compliance with the Coal Regulations of
the Colorado Mine Land Reclamation Board, and in addition, has reorganized and updated all applicable
information in its presently approved permit.
EC plans to utilize longwall mining as its primary mining method. However, the standard room-and-pillar mining
method will be utilized for development of the longwall panels, and if needed, to supplement coal production. The
name of the EC operation will be "Eagle Mines".
Background of Empire Eagle Mines Mine Ownership
The Empire Eagle Mines are owned by BTU Worldwide, Inc., a Delaware Corporation with Articles of
Incorporation on file with the Secretary of State of Delaware. The principal shareholder of BTU Worldwide is the
Peabody Energy Corporation located in St. Louis, Missouri. The Empire Eagle Mines were acquired from RAG
American Coal Holding on April 16, 2004.
A brief summary of the history of ownership shows that CEC (Cyprus Empire Corporation) operated the Empire
Eagle Mines beginning in 1972 as a subsidiary of Zigler Coal Co. Cyprus Coal Company later acquired the Empire
Eagle Mines from Zigler Coal Company in 1982, and began operating under an approved Colorado Mine Land
Reclamation Board permit from August 1983 through August 1995. RAG American Coal Holding then acquired
the mine (RAG EC) from Cyprus in 1999.
Geographical Setting
The EC site lies approximately seven (7) miles south of Craig, Colorado on State Highway l3. The mine site, and
adjacent area lie a[ the foot of the prominent Williams Fork Mountains, which trend east to west immediately to the
South. The general geographical location of the EC operation is shown on Figure 1, General Location Map. The
elevation of the permit area ranges from a low of approximately 6,130 feet in the Big Bottom area, to a high of
about 7,400 feet in the Williams Fork Mountains. The entire operation is located in Moffat County, Colorado.
There are two (2) major northwestern Colorado rivers which intersect the permit area. These are: 1) Yampa River
and 2) Williams Fork River. The Yampa River runs from north to south through the permit area, while the
Williams Fork River runs from south to north and intersects the Yampa River just north of the mine facilities area.
The northern portion of [he permit area is dominated by the Big Bottom alluvium, while the southern and eastern
portions of the permit area are dominated by the Williams Fork Mountains and the river beds of the Yampa and
Williams Fork Rivers.
Brief History of Area
The EC Mine Site is located in an area which has been previously mined by surface and underground mining. The
earliest records of mining show that underground mining began in the area in the late 1920's and early 1930's.
While surface strip mining began around 1975.
The major mines which have operated in the pas[ are: 1) Wise Hill (1,2,3,4), Williams Fork Strip (1,2,3), and
Trapper Strip. The Trapper Strip Mine began operations in 1976 and operations have continued since that time.
EC began mining in the Eagle No. 5 Mine in 1972 and continues to the present. The No. 5 Mine ("F" Coal Seam)
utilized room-and-pillar methods until 1985 when economics dictated a change to the longwall mining method.
Permit Revision 04-34 -1- 7/2/04