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"Wishbone Hill Coal Mine - Draft Mining Application - Part B - Alaska DEC - 2011".
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PART B LEGAL, FINANCIAL, AND COMPLIANCE INFORMATION
WBH 2009 Update
TABLE OF CONTENTS Page 1.0 IDENTIFICATION OF INTERESTS ....................................................................................... B-1 1.1 APPLICANT ...................................................................................................................... B-1 1.2 OTHER BUSINESSES ...................................................................................................... B-2 1.3 PREVIOUS OPERATIONS WITHIN THE U.S. ............................................................. B-3 1.4 COAL MINING PERMITS ............................................................................................... B-3 1.5 INTERESTS IN LAND CONTIGUOUS TO THE PERMIT AREA .............................. B-4 2.0 COMPLIANCE .......................................................................................................................... B-6 3.0 AUTHORITY TO ENTER ........................................................................................................ B-6 3.1 EXISTING RIGHTS .......................................................................................................... B-6 3.2 PENDING RIGHTS ........................................................................................................... B-9 4.0 AREAS UNSUITABLE FOR MINING ................................................................................... B-9 5.0 PERMIT TERM INFORMATION ......................................................................................... B-10 6.0 OTHER LICENSES AND PERMITS .................................................................................... B-10 7.0 LIABILITY INSURANCE ...................................................................................................... B-12 LIST OF TABLES Page TABLE B-1 Permits, Leases, and Approvals Required for the Wishbone Hill Coal Project....................................................................................................... B-11 LIST OF EXHIBITS Page EXHIBIT B-1 Certificate of Insurance ......................................................................................... B-13 LIST OF PLATES PLATE B-1 Permit Term Disturbance Area................................................................ In Map Pocket
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1.0 IDENTIFICATION OF INTERESTS Specific information required by 11 AAC 90.023 is presented below for the applicant and other businesses having an interest within the proposed permit area. 1.1 APPLICANT The applicant is: Usibelli Coal Mine, Inc. P.O. Box 1000 Healy, Alaska 99743 (907) 683-2226
The Officers and Directors of Usibelli Coal Mine, Inc. are: Name: Joseph E. Usibelli Corporate office: CHAIRMAN AND CEO Address: P.O. Box 1000, Healy, Alaska 99743 Telephone number: 907-683-2226 Name: Joseph E. Usibelli, Jr. Corporate office: PRESIDENT Address: P.O. Box 1000, Healy, Alaska 99743 Telephone number: 907-683-2226 Name: Rosalie Whyel Corporate office: VICE-PRESIDENT Address: P.O. Box 1000, Healy, Alaska 99743 Telephone number: 907-683-2226 Name: A. Kirk Lanterman Corporate office: SECRETARY/TREASURER Address: P.O. Box 1000, Healy, Alaska 99743 Telephone number: 907-683-2226 Name: Earl Beistline Corporate office: DIRECTOR Address: P.O. Box 1000, Healy, Alaska 99743 Telephone number: 907-683-2226 Name: Marc Langland Corporate office: DIRECTOR Address: P.O. Box 1000, Healy, Alaska 99743 Telephone number: 907-683-2226 B-1
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Name: Richard Wien Corporate office: DIRECTOR Address: P.O. Box 1000, Healy, Alaska 99743 Telephone number: 907-683-2226 All shares of Usibelli Coal Mine, Inc. (UCM) are owned by members of the Usibelli family. 1.2 OTHER BUSINESSES The only other business having an interest in the surface or subsurface estate within the proposed permit area is: Cook Inlet Region, Inc. 2525 "C" Street, Suite 500 Anchorage, Ak. 99503 (907) 274-8638 The officers of Cook Inlet Region, Inc. are: Margaret L. Brown President & CEO Sophie Minich Chief Operating Officer Stig Colberg Chief Business Development Officer Patrick W. Duke Chief Financial Officer Barbara A. Donatelli Senior Vice President Ethan Schutt Senior Vice President, Land and Energy Bruce Anders General Counsel Dave Pheifer Vice President, Real Estate Gregory P. Razo Vice President, Government Contracting Ashley Schmiedeskamp Vice President, Business Development The directors of Cook Inlet Region, Inc. are: Charles G. Anderson Chairman Roy M. Huhndorf Chairman Emeritus Patrick M. Marrs Vice Chairman Thomas P. Huhndorf Secretary Michael R. Boling Treasurer Douglas W. Fifer Assistant Secretary Penny L. Carty Assistant Treasurer B. Agnes Brown Rolf a. Dagg Hallie L. Bissett Erik I. Frostad Jeffrey A. Gonnason Katrina M. Jacuk Ted S. Kroto Sr. Louis Nagy Jr. B-2
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Businesses having an interest in the surface or subsurface estate adjacent to the permit area include: Eklutna, Inc. 1615 Centerfield Drive, Suite 100 Eagle River, Ak. 99577-7719 (907) 696-2828 Chickaloon Moose Creek Native Association P.O. Box 1105 Sutton, Alaska 99674 (907) 745-0707 Alaska State Elks Association 2034 Crataegus Ave. Anchorage, Alaska 99508 (907) 746-3557 1.3 PREVIOUS OPERATIONS WTHIN THE U.S. The applicant has not conducted a coal mining operation in the United States during the last five years under any other name. 1.4 COAL MINING PERMITS The applicant currently holds the following surface coal mining permits issued by the Alaska Department of Natural Resources, Division of Mining, Land, and Water (ADNR-DMLW): Poker Flats Mine Original permit issued under 01-83-796 Runaway Ridge major revision 01-83-796-01 Major revision approved and issued under S-0601-A Gold Run Pass Mine Original permit issued under 02-83-796 Phase 5 major revision S-0602-A Two Bull Ridge Original permit issued under S-0603 Rosalie Mine Original permit issued under S-0604 Jumbo Dome Mine Road Corridor – Original permit issued under S-0605
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In addition to the mining permits listed above, the applicant also holds the following coal exploration permits issued by the ADNR-DMLW: Hoseanna Creek Two Bull Ridge Healy Valley Wishbone Hill Permit Permit Permit Permit No. 02-86-795 No. MHL E-0602 No.E-0603 No. 01-86-795
Cook Inlet Region, Inc. is the only other business that has an interest in the subsurface estate within the proposed permit area. They held ADNR-DMLW surface coal mining permits 01-89-796 and 02-89-796 from September 19, 1995 through November 30, 1997. 1.5 INTERESTS IN LAND CONTIGUOUS TO THE PERMIT AREA The permit area for the proposed Wishbone Hill coal mining operation lies within state coal lease ADL 32144 and ADL 309947. As such, a portion of the land that is contiguous to the permit area is under these two coal leases. Usibelli Coal Mine, Inc. (UCM) acquired the leases through transfer from North Pacific Mining Corporation with approval from the ADNR-DMLW and the Mental Health Trust Land Office. The location of the leases is described below. ADL-309947 Township 19N, Range 2E, Seward Meridian Section 22: E1/2 SE1/4 Section 23: NW1/4 W1/2 NE1/4 N1/2 SW1/4 ADL-32144 Township 19N, Range 2E, Seward Meridian Section 22: S1/2 SW1/4 W1/2 SE1/4 Section 27: N1/2 N1/2 S1/2
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Section 28: N1/2 SE1/4 SE1/4 NE1/4 S1/2 SW1/4 NE1/4 NW1/4 SW1/4 NE1/4 UCM does not have any options or pending bids on any other lands that are contiguous to the permit area.
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2.0 COMPLIANCE INFORMATION The applicant (which is the operator), nor any subsidiary, affiliate, or other business controlled by the applicant, has never had a federal or state mining permit suspended or revoked, or forfeited a mining bond or similar security deposited in lieu of bond.
Violations received by UCM in connection with its existing surface coal mining operation during the past three years are outlined below. LIST OF VIOLATIONS Date Agency Violation # Permit # Status
8/25/09 8/25/09
DMLW DMLW
N-S0603-082509 N-S0603-082509-1
S-0603 S-0603
Abated Terminated
3.0 AUTHORITY TO ENTER This section provides the basis for UCM’s legal right to enter upon and conduct surface coal mining and reclamation operations within the permit area. Relevant documents are identified by type, date of execution, and the specific land to which they pertain. 3.1 EXISTING RIGHTS 1) Coal lease ADL-32144 and ADL-309947 issued December 1, 1997 by the ADNR-DMLW with concurrence from the Mental Health Trust Land Office for ADL-32144. These coal leases were obtained through transfer from North Pacific Mining Corporation. The permit lands associated with each lease are described below: PERMIT LANDS STATE COAL LEASE
Township 19N, Range 2E, Seward Meridian Section 22: SE1/4 SE1/4 -------------------------------------------------------------------------------- ADL-309947 SE1/4 NE1/4 SE1/4 S1/2 NE1/4 NE1/4 SE1/4 SE1/4 SW1/4 NE1/4 SE1/4 SE1/4 NE1/4 SW1/4 SE1/4--------------------------------------------------------------- ADL-32144 SE1/4 SW1/4 SE1/4 S1/2 SW1/4 SW1/4 SE1/4 B-6
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Section 23: NW1/4 SW1/4 ---------------------------------------------------------------------------- ADL-309947 ADL-309947 NE1/4 SW1/4 SE1/4 NW1/4 SE1/4 SW1/4 NW1/4 E1/2 NE1/4 SW1/4 NW1/4 S1/2 SW1/4 SW1/4 NW1/4 SW1/4 SW1/4 NE1/4 Section 27: N1/2 S1/2 ------------------------------------------------------------------------------------ ADL-32144 NE1/4 S1/2 NW1/4 E1/2 NE1/4 NE1/4 NW1/4 SW1/4 NE1/4 NE1/4 NW1/4 S1/2 NE1/4 NW1/4 E1/2 SE1/4 NW1/4 NW1/4 SW1/4 SE1/4 NW1/4 NW1/4 Section 28: NE1/4 SE1/4 -------------------------------------------------------------------------------- ADL-32144 SE1/4 SE1/4 NE1/4 S1/2 SW1/4 SE1/4 NE1/4 SE1/4 NE1/4 SE1/4 NE1/4 2) Coal lease from Cook Inlet Region, Inc., executed on June 10, 1997, for the following described permit lands: Township 19N, Range 2E, Seward Meridian Section 23: SW1/4 SW1/4 W1/2 SE1/4 SW1/4 W1/2 E1/2 SE1/4 SW1/4 Section 26: W1/2 NW1/4 3) UCM owns the following described permit lands and holds the statutory warranty deeds: Township 19N, Range 2E, Seward Meridian Parcel 1 Section 23: W1/2 SE1/4 SW1/4, W1/2 E1/2 SE1/4 SW1/4 Parcel 2 Section 23: SW1/4 SW1/4 B-7
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Section 26: NW1/4 NW1/4 Parcel 3 Section 26: SW1/4 NW1/4 4) Surface lease ADL-225305 issued on March 11, 2003 by the ADNR-DMLW with concurrence from the Mental Health Trust Land Office for the following described lands:
Township 19N, Range 2E, Seward Meridian Section 28: SE1/4 SE1/4 5) Surface lease ADL-224865 issued on April 20, 1990 by the Division of Land. This lease was obtained through transfer from North Pacific Mining Corporation with approval from the ADNR-DMLW and Mental Health Trust Land Office. The permit lands associated with the lease are described below: Township 19N, Range 2E, Seward Meridian Section 27: S1/2 S1/2 Section 34: N1/2 N1/2 N1/2 SE1/4 NE1/4 NE1/4 E1/2 SW1/4 NE1/4 NE1/4 E1/2 NE1/4 SE1/4 NE1/4 E1/2 SE1/4 SE1/4 NE1/4 E1/2 NE1/4 NE1/4 SE1/4 Section 35: NW1/4 NW1/4 SW1/4 W1/2 NE1/4 NW1/4 SW1/4 N1/2 SE1/4 NW1/4 SW1/4 SE1/4 NE1/4 NW1/4 SW1/4 S1/2 NW1/4 NE1/4 SW1/4 SW1/4 NE1/4 SW1/4 W1/2 SE1/4 NE1/4 SW1/4 SE1/4 SE1/4 NE1/4 SW1/4 S1/2 SW1/4 NW1/4 SE1/4 N1/2 NE1/4 SE1/4 SW1/4 NW1/4 NW1/4 SW1/4 SE1/4 E1/2 NW1/4 SW1/4 SE1/4 NE1/4 SW1/4 SE1/4 W1/2 NW1/4 SE1/4 SE1/4 B-8
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Section 35 (Continued): SE1/4 NW1/4 SE1/4 SE1/4 N1/2 SW1/4 SE1/4 SE1/4 SW1/4 NE1/4 SE1/4 SE1/4 NW1/4 SE1/4 SE1/4 SE1/4 E1/2 SE1/4 SE1/4 SE1/4 Section 36: SW1/4 SW1/4 SW1/4 S1/2 SE1/4 SW1/4 SW1/4 6) Lease Agreement executed with the Matanuska-Susitna Borough on October 26, 2010 for the permit lands described below. Township 18N, Range 2E, Seward Meridian Section 1: NE1/4 NW1/4 NW1/4 NW1/4 NE1/4 NW1/4 NW1/4 W1/2 NW1/4 NE1/4 NW1/4 NE1/4 SE1/4 NW1/4 NW1/4 SW1/4 NE1/4 NW1/4 NW1/4 SE1/4 NW1/4 NW1/4 SW1/4 SE1/4 NW1/4 SE1/4 NE1/4 SW1/4 NW1/4 SE1/4 SW1/4 NW1/4 S1/2 SW1/4 SW1/4 NW1/4 7) The permit lands described below were conveyed to UCM under a statutory warranty deed from North Pacific Mining Corporation on January 12, 1998: Township 18N, Range 2E, Seward Meridian Section 1: That portion of Lot 5 lying north of the Glenn Highway right-of-way
3.2 PENDING RIGHTS There are no pending rights within the permit area. 4.0 AREAS UNSUITABLE FOR MINING The proposed permit area contains no areas that have been designated unsuitable for mining or that are under study for designation as such. B-9
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5.0 PERMIT TERM INFORMATION The requested permit term is 5 years. The disturbance area associated with the first five years of mining and the remaining life of mine are depicted on Plate B-1. The major activities during the term covered by this permit application will include construction of roads, drainage and sedimentation control structures, coal processing facilities and the development of mining pits for coal extraction (see Part D). 6.0 OTHER LICENSES AND PERMITS Permits and approvals required for start-up of the Wishbone Hill Coal Project are listed in Table B1 along with the issuing authority, identification number, and current status.
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TABLE B-1 PERMITS, LEASES, AND APPROVALS REQUIRED FOR START-UP OFTHE WISHBONE HILL COAL PROJECT Document Permit/ Lease No. Original Issue Date *Dec 29, 1997 *Dec 29, 1997 Sep 5, 1991 Sep 5, 1991 Aug 2, 1991 Apr 20, 1990 Mar 11, 2003 May 16, 1990 --------Aug 7, 1989 Dec 31, 1990 Jul 8, 1992 --------------------Sep 25, 2009 ----Oct 26, 2010 Oct 26, 2010 Nov 7, 2008 N/A Mar 1. 2011 Jun 10, 1997 Latest Renewal N/A N/A Sep 4, 2006 Sep 4, 2006 Sep 4, 2006 N/A N/A Jun 13, 2000 --------N/A Expiration Date Indefinite Indefinite Nov 27, 2011 Nov 27, 2011 Nov 27, 2011 Apr 15, 2015 Aug 31, 2012 May 16, 2005 --------N/A
Department of Natural Resources 1) Coal Lease No. 1 ADL 32144 2) Coal Lease No. 2 ADL 309947 3) Permit to Mine No. 1 01-89-796 4) Permit to Mine No. 2 02-89-796 5) CZM Review for Permit to Mine No. 2 N/A 6) 25-Year State Surface Lease ADL 224865 7) 10-Year State Surface Lease ADL 225305 8) Permit to Appropriate Surface Water Pending 9) Permit to Appropriate Groundwater Pending 10) Temporary Water Use Permit Pending 11) Cultural Resource Site Clearance 3130-2R Department of Environmental Conservation 12) Air Quality Construction Permit Pending 13) Wastewater Disposal Permit 2003DB0036 14) Sewage Treatment Plan Review Pending 15) Drinking Water Plan Review Pending 16) Spill Prevention Plan Review Pending 17) Storm Water Pollution Prevention Plan Pending Department of Fish & Game 18) Fish Habitat Permit Pending Department of Transportation 19) Approval to Construct a Driveway ATC-20440 Department of Revenue 20) Mining License Pending Matanuska-Susitna Borough 21) Surface lease MSB 001803 22) CZM Consistency Review AM 90-089 23) Conditional Use Permit Grandfathered Mine Safety & Health Administration 24) Mine Identification No. 50-00030 Army Corps of Engineers 25) Wetlands Non-Jurisdictional Determination N/A Cook Inlet Region, Inc. 26) Coal Lease N/A * **
Jun 23, 1995 Jan 18, 1997 Jul 16, 2003 **Jun 17, 2008 ------------------------------------N/A ----N/A N/A N/A N/A N/A N/A ----Aug 31, 2011 ----Jun 1, 2035 Jun 1, 2035 N/A N/A N/A Jun 10, 2017
Date lease was transferred to UCM Renewal application approved on January 20, 2009. Reissuance of the permit put on hold because of DEC’s work schedule.
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** Renewal Application pending approval
7.0 LIABILITY INSURANCE Exhibit B-1 contains certification that UCM has a public liability insurance policy in force for its existing operations and any proposed operations that may be conducted under other permits. The policy contains the coverage requirements and special conditions specified in 11 AAC 90.033, including the use of explosives. Notice will be sent to the commissioner of Natural Resources if the coverage is not renewed or otherwise canceled.
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EXHIBIT B-1 CERTIFICATE OF INSURANCE
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PLATE B-1 PERMIT TERM DISTURBANCE AREA
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