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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866 -3567 <br />FAX: (303) 832 -8106 <br />INTEROFFICE MEMORANDUM <br />TO: <br />FROM: <br />DATE: <br />COLORADO <br />DIVISION OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Johanna Cramer, Joe Dudash, Dan Mathews, Jim Stark, and Marcia Talvitie <br />Mike Boulay M 5 <br />November 12, 2010 <br />SUBJECT: McClane Canyon Mine (Permit No. C- 1980 -004) <br />Permit Revision No. 2 (PR -2) Adequacy Review <br />The permit revision application for the proposed McClane Canyon Mine expansion of the surface <br />facilities and mine plan was deemed complete November 10, 2010 and our adequacy review is due to <br />be completed no later than January 9, 2011. Dan Mathews and I have been involved in planning <br />meetings with the operator and their consultant(s) for this project primarily regarding required <br />baseline studies and reevaluation of the AVF determination. For those of you not familiar with the <br />project, the following brief description is provided. <br />McCIane Canyon Mine currently trucks about 280,000 tons of coal per year to the Cameo Power <br />plant (currently the Mine's only customer). The Cameo Power plant is scheduled to close at the end <br />of 2010. In order to continue the operations, McClane Canyon Mining intends to increase <br />production to 500,000 clean tons per year and build a cleaning plant and associated facilities. The <br />coal will then be loaded into trucks and hauled to the proposed Fruita Loadout for rail shipment. <br />This is an extensive revision including a new coal cleaning plant, diversion of McClane Creek in a <br />660 foot long culvert, reshaping of the canyon topography below the mine portal to accommodate a <br />crushing and screening facility, air jig plant, product and coal mine waste stockpiles and various <br />conveyors. The permit boundary will be expanded and a new coal mine waste pile, sediment pond, <br />and a topsoil and construction material stockpiles will be located south of the existing McClane <br />Canyon Mine facilities. <br />A large portion of the permit application package (PAP) has been revised including sections 2 and 3 <br />have been entirely rewritten and most of the pertinent Appendices and Figures have been redone. The <br />PAP is three volumes; Volume I Text & Tables, Volume H Figures, Volume III Appendices. I am <br />requesting review assistance as follows: <br />Identification of Interests, Compliance Information, and AVS review, Pen Application <br />Package Volume I Section 1 and Appendix A - Johanna; <br />Office of <br />Office of <br />Mined Land Reclamation Denver • Grand Junction Durango Active and Inactive Mines <br />