2008-09-29_PERMIT FILE - C1981019A (30)

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INTRODUCTION INTRODUCTION The Colowyo Coal Company L.P. ("Colowyo") presently mines coal from Federal Coal Leases No. D- 034365, C-35874, and C-29224 on an area southwest of Craig, Colorado. With this application, Colowyo is requesting a permit renewal/permit revision of a valid existing permit to conduct coal mining in Colorado under the Colorado Surface Coal Mining Reclamation Act, C.R.S. 1973, Section 34-33-101 et sea and the Rules and Regulations of the Colorado Mined Land Reclamation Board (CMLRD) effective August 30, 1980. The permit revision provides for the mining and reclamation of a previously unpermitted portion of Federal Coal Lease C-29224 and Colorado State Coal Lease 257/13S. Geographic Setting The Colowyo operation is located approximately 28 miles southwest of Craig, Colorado on State Highway 13/789, as shown in Figure 1, General Location Map. State Highway 13/789 provides direct access to the mine from both Craig and Meeker, Colorado. The mine site is served by the Denver & Rio Grande Western Railroad from a spur line constructed by Colowyo from Craig. The elevation of the mining area is approximately 7,300 feet above sea level. The mining operation is in Moffat County and Rio Blanco County, Colorado. The Colowyo operation is drained by one intermittent drainage, Taylor Creek, an ephemeral drainage, Streeter Creek, and bordered by perennial drainages, Goodspring Creek and Wilson Creek. Taylor Creek flows into Wilson Creek, and both Wilson Creek and Goodspring Creek flow eventually into Milk Creek which is located northeast of the mining operation. Milk Creek flows into the Yampa River, approximately 9 miles from the Colowyo mine. Background of the Area and Colowyo The Colowyo operation is located in an area which has experienced previous mining by underground methods. From historical record, two underground mines were in operation in what is now the Colowyo permit area. Underground mining continued from the proposed permit area until the early 1970's. The underground mines which were found in the area were known as the Red Wing Mine and the Streeter Mine. Coal from these underground mines was shipped to numerous locations around the Rocky Mountain region with the major use of this coal being used for both industrial and domestic purposes. The underground coal mining in the area where Colowyo's surface mine is located began around 1914 by Collum Coal Company. Federal Coal Lease D-034365 was issued to Clifford Phelan in 1924. In 1945 the Lease was assigned to Colowyo Coal Company, and the name was changed to the Red Wing Mine. Colowyo Coal Company developed the Red Wing Mine to an annual production of 150,000 to 250,000 tons. Pre-startup activities for a surface mine permit commenced in the summer of 1973. Colowyo was purchased by W. R. Grace on December 1, 1973. Underground operations at Red Wing Mine were shut down in 1974 because of an underground fire. The Hanna Mining Company entered into partnership with W. R. Grace in 1975. Contracts Colowyo produces a high quality, low-sulphur coal from its mining operation. Introduction 1 Date Revised: 6/23/08 Revision No: MR-91