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J. E. STOVER & ASSOCIATES, INC. <br />2352 NORTH 7th STREET, UNIT B <br />GRAND JUNCTION, COLORADO 81501 <br />PHONE: (970) 245-4101, FAX 242-7908 <br />MINE ENGINEERING <br />MINE RECLAMATION <br />October 29, 2010 <br />Mike Boulay <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />Re: McClane Canyon Mining, LLC <br />McClane Canyon Mine <br />Permit Revision Application No. 2 <br />Expand Mine Plan and surface facilities <br />Permit number: C-1980-004 <br />Dear Mr. Boulay: <br />CIVIL ENGINEERING <br />CONST. MANAGEMENT <br />C'° <br />t?OV p 12010 <br />µ;nin <br />On behalf of McClane Canyon Mining, LLC, enclosed is an application for a permit <br />revision to provide for expansion of surface facilities and mining plan. <br />Project Description <br />McClane Canyon mine currently trucks about 280,000 tons of coal per year to the <br />Cameo Power plant located off 1-70 at Exit 46. The Cameo Power plant is scheduled to <br />close at the end of 2010. Since the Cameo Power plant is the Mine's only customer, the <br />Mine will also close temporarily at the end of 2010. In order to continue the operations, <br />McClane Canyon Mining intends to increase production to 500,000 clean tons per year <br />and build a cleaning plant and associated facilities. The clean coal will then be loaded <br />into trucks and hauled to the Fruita Loadout. <br />The new coal cleaning plant will be located in the canyon above the offices and below <br />the mine portal. McClane Creek is an ephemeral channel that forms the canyon. <br />McClane Creek will be placed in a 660 foot long 42" diameter culvert to develop <br />necessary room for the facilities and stockpiles. Earth moving operations will shape the <br />site to accommodate a crushing and screening facility, air jig plant, product and coal <br />mine waste stockpiles and various conveyors. <br />A new coal mine waste pile, sediment pond, and a topsoil and construction material <br />stockpiles will be located south of the facilities.