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E <br />S co.~compnr Seneca Coal Company <br />January 12, 2005 <br />Mr. Mike Boulay <br />Division of Minerals and Geology <br />1313 Sherman Street, Rm. 215 <br />Denver, CO 80203 <br />(303) 866-3567 <br />RECEI\/E® <br />JAN } 3 2005 <br />Givision of Minerals and Geology <br />RE: Yoast Mine Permit No. C-94-082 <br />Application for Renewal of Permit <br />Mr. Boulay, <br />The current five-yeaz mining term for the Yoast Mine expires on August 5, 2005. Pet Rule <br />2.08.5(3)(f), SCC is submitting a completed application for renewal at least 180 days prior to the <br />permit expiration. Attached are the completed application form (signed), a copy of the Public <br />Notice to be published in the local newspaper, and a copy of the Certificate of Insurance for 2005. <br />As SCC has discussed with DMG, the total Seneca mining operation is rapidly approaching the end <br />of mine life. The disappointing performance of the Highwall Miner and ever increasing overburden <br />depth that exceeds the operating limit of the G50 dragline has adversely affected economic <br />performance of Seneca Coal Company; therefore Peabody Energy has made a corporate decision to <br />cease coal production not later than 2006. Highwall mining operations were terminated in <br />December 2005. "1 F~is decision has affected the approved timing of backfilling and grading activities <br />of the Yoast and II-W mines. <br />As the DMG is awaze, SCC has recently rented four (4) Komatsu dozers that will be added to <br />existing fleet to bring the total up to ten (10) D-10 class dozers to assist with reclamation (back6lling <br />and grading) efforts at Yoast and II-W. These four dozers axe expected to be assembled and "in the <br />dirt" by the end of January. In addition, SCC has a fleet of nine (9) 637 scrapers. As presented in <br />our January 5`" meeting, the big picture fox reclamation focuses on back5lling and grading at II-W in <br />2005 and at Yoast in 2006. This plan will allow mine-wide reclamation to proceed in an orderly and <br />logical manner based on the personnel and equipment at SCC's disposal. <br />During discussions with DMG it was determined that the changes to the Yoast operations plan will <br />require a technical revision to address the revisions to the cunenfly approved mining and <br />reclamation plans. Within the next few weeks, SCC will submit a Technical Revision to the Yoast <br />Permit as a follow up to the submittal of this renewal application, this will allow the DMG to base <br />the Findings Document on the revised operations and reclamation plans. <br />Seneca Coal Company . P.O. Box 670 • Hayden, Colorado 81839 <br />Telephone (970) 278-3707 • FAX (970) 278J014 <br />