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September 2013 Moffat County Minzng, LLC * Bond Release Applzcat:on 1.2 PERMIT INFORMATION The Williams Fork Mines are an inactive complex of underground coal mines, reclaimed surface mines, and associated surface support facilities. Longwall mining in the "F" Seam was completed in early 1990, and full production in the "E" Seam began later in that same year. An application was filed and approved to put the property into "Temporary Cessation" status in late 1995. With limited reclamation activities in 1996 through 1998 and 2008 through 2009, the property status was changed to "Active ". MCM recently filed and received approval to put the property back into "Temporary Cessation" status, given the limited potential for near -term active operations at this site. With the exception of limited reclamation activities, the property has remained on care and maintenance status since production ceased in the mid -90's. The mines and associated support facilities are permitted under an approved Mining and Reclamation Permit (Permit No. C -81 -044), with the Colorado Division of Reclamation, Mining, and Safety (DRMS). The permit was originally approved and issued on September 1983 and was subsequently renewed on October 23, 2000, September 6, 2003, and May 22, 2009. The most recent Permit Renewal application was submitted on February 22, 2013, and is currently being reviewed. 1.3 RECLAMATION HISTORY AND STATUS The Williams Fork Mines Complex is located under and adjacent to areas which have previously been mined by surface or underground mining. Records indicate that underground mining began in the area in the late 1920's and early 1930's, while surface strip mining began around 1975. The most recent mining activities were underground mine development, and room and pillar and longwall mining in the "F" and "E" coal seams from the former Eagle 5 and 6 portals beginning in 1972 and continuing through 1995, when active mining ceased and the mine complex was put on care and maintenance status. Both prior, and subsequent to cessation of active mining operations, several mined -out areas and various facilities which were no longer needed to support ongoing or future operations, were reclaimed. The following sections identify and describe the reclamation history and status of those mining areas and facilities addressed by this bond release request. Williams Fork Strip Pit The Williams Fork Strip Pit No. 2 was mined during the period from 1975 through 1979, with some reclamation occurring in conjunction with the active mining operations (Pre -Law area of approximately 32.7 acres). When the mine permit for underground mining was originally approved in 1983, the permitted plans anticipated establishing portals in the highwall of the existing Williams Fork Strip Pit No. 2, as a second access point (No. 9A Portal) for the No. 9 Mine ( "P" Coal Seam). Given this consideration, a permit revision was approved in 1984 for additional mining in the No. 9 Mine, which included a request for approval of a delay in contemporaneous reclamation for this area. The No. 9 Mine ceased operations in 1985, however, prior to the construction of the planned 9A portal facilities, and the Williams Fork Strip Pit No. 2 area was subsequently reclaimed in 1987 (Post -Law area of approximately 62.7 acres). Reclamation of the Williams Fork Strip Pit No. 2 was completed consistent with the approved plans, as outlined in Exhibit 24 of the PAP. Utah Tract The Utah Tract was surface mined by Utah International, as part of the Trapper Mine operations. As part of an agreement allowing the former Eagle No. 5 and 6 Mine to recover portions of the "E" and "F" coal seams under this area, both ownership and the associated reclamation liabilities for this area 3