This is the former Albuquerque & Cerillos Coal Co. enginehouse at Madrid, New Mexico. Former AT&SF 2-8-0 769 was kept inside for many years, but was rolled outside when the building was converted to a theater. The nose of the engine is built into the end wall where the doors used to be.

http://www.madridmelodrama.com/

The locomotive is considered to be part of the Old Coal Mine Museum, nearby:

http://oldcoalminemuseum.com/

Madrid was featured on 60 Minutes some years ago, as an artists colony which had no form of government. Former Santa Fe 2-8-0 870, which sat outside the mine for many years in very bad conditon, was moved to Santa Fe Springs, California several years ago and nicely restored by Stan Garner.

http://www.steamlocomotive.info/vlocomo ... isplay=217