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RULE 2 PERMITS <br />2.04.6 Geology Description <br />The coal mined at the Colowyo operation is located in the northern extent of the Danforth Hills coal field <br />of the Uinta Region. The Danforth Hills field comprises the coal deposits on the northeast flank of the <br />Piceance Creek basin and is defined to the northeast by the Axial Basin Anticline. <br />Stratig_raphy <br />The area is underlain by as much as 13,500 feet of sedimentary rock consisting of approximately 4,500 <br />feet of Paleozoic (570 million to 225 million years old) quartzite, limestone, shale, sandstone, and <br />gypsum and 9,000 feet of Mesozoic (225 million to 70 million years old) limestone, shale, mudstone, <br />sandstone, and conglomerate. The coal seams mined at the Colowyo operation are of upper Cretaceous <br />Age. <br />The generalized geological structural setting is outlined in Figure 2.04.6-1 Geologic Structural Setting. <br />The stratigraphic position of the coals mined by Colowyo are graphically illustrated in Figure 2.04.6-2, <br />Generalized Stratigraphic Column. <br />The two most important geologic formations within the permit area are the upper Cretaceous Iles and <br />Williams Fork Formations of the Mesa Verde Group. Details of each formation are set forth below. <br />Iles Formation - In general, the Iles Formation consists of light brown- to white, fine- to medium-grained, <br />poorly-sorted calcareous sandstone interbedded with red and dark maroon sandy and silty carbonaceous <br />shale. Thin lenticular coal beds are found in this formation. The uppermost sandstone of the Iles <br />Formation, the Trout Creek Sandstone Member, appears to be reliable marker horizon at the base of the <br />principal coal beds within the Williams Fork Formation. The 75 foot thick Trout Creek member is a <br />white, fine-grained, well-sorted, massive sandstone that is fairly uniform in thickness over a large area. <br />The Trout Creek Sandstone Member, a common ridge-forming unit in the Danforth Hills, has been called <br />the "White Rock" because of its characteristic exposures. <br />The deposition of the Trout Creek Sandstone marked a major regression of the Late Cretaceous seaway <br />over a large region. <br />The resulting clean, well sorted blanket sand formed by this migrating beach and barrier island complex is <br />an aquifer of regional extent in Northwest Colorado. Under the area to be mined within the Colowyo <br />Permit area, the Trout Creek sandstone underlies the lowest surface recoverable seam to be mined by 800 <br />feet. Considering the nature of the intervening strata which is comprised of primarily claystone, shales, <br />and siltstones; it is very doubtful the Colowyo operation will impact the Trout Creek sandstone. <br />The Iles Formation in the permit area is estimated to be 1,375 feet thick. The Iles Formation forms most <br />of the cliffs that surround the Axial Basin. The Iles Formation lies approximately 1,700 feet beneath the <br />actual mining area; however, minor folds or faults in the regional trend bring the formation nearer the <br />surface. <br />Williams Fork Formation - The Williams Fork Formation consists of alternating beds of sandstone, sandy <br />shale and coal. It is distinguished from the Iles Formation by its thick zones of brick red sandstone and <br />shale, which have been colored from adjacent naturally-burning coal beds, a common occurrence in the <br />Axial area. The coal beds in the formation are uniformly distributed in the vicinity of the mine but <br />generally vary greatly within the regional extent of the unit. The stratigraphic thickness of the Williams <br />Fork Formation in the permit area has been estimated to be about 1,600 feet; its degree of areal extent in <br />the Axial Basin is similar to that of the Iles Formation. <br />Rule 2 Permits 2.04.6-1 Revision Date: 6/23/08 <br />Revision No.: MR-91