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APPLICATION FOR LEASE SUSPENSION <br />Lessee: Oxbow Mining, LLC. Elk Creek Mine <br />P.O Box 535, <br />Somerset, Colorado, 81434 <br />Officer: Mr. Mike Ludlow, President <br />P.O Box 535, <br />Somerset, Colorado, 81434 <br />Suspension Requested: Force Majeure Suspension: Casualty with lease suspension of the <br />continued operations and production in the interests of resource <br />conservation. <br />Federal Coal Leases: COC61357 and COC70615 <br />Introduction: The Oxbow Mining, LLC, Elk Creek Mine leases federal coal COC61357 and <br />COC70615. These leases include only D seam reserves. Oxbow has applied for <br />the B seam reserves through lease modifications in accordance with 43 CFR <br />Subpart 3432 — Lease Modifications. That B seam modification request will <br />continue to its conclusion. <br />COC61357 - The mining of coal from COC61357 was initiated in March 2003. The lease <br />has been modified four (4) times through lease modifications. According to BLM figures, <br />the total recoverable coal reserve base for the lease is approximately 25,489,000 tons. <br />Further, according to BLM information, as of December, 2013 approximately 37,556,314 <br />tons of coal have been recovered from the lease. The BLM considers the lease to be <br />"mined out ". Oxbow has an approved mine plan with the Colorado Division of <br />Reclamation, Mining and Safety (CDRMS) for the recovery of additional coal from the <br />lease. A B seam lease modification application has been submitted to the BLM for <br />reserves located entirely within the current lease footprint. <br />COC70615 — The mining of coal from COC70615 was initiated in April 2013. The lease <br />is undergoing a lease modification for the addition of adjacent coal resources from "Tract <br />2 ". According to BLM figures, the total recoverable coal reserve base for the parent <br />lease is approximately 3,960,000 tons. As of December, 2013 approximately 227,112 <br />tons of coal have been recovered from the lease. Oxbow has an approved mine plan <br />with the Colorado Division of Division of Reclamation, Mining and Safety (CDRMS) for <br />the recovery of additional coal from the lease. A B seam lease modification application <br />has been submitted to the BLM for reserves located entirely within the current lease <br />footprint. <br />Background Information: <br />On December 2, 2012 a bounce occurred in the 5 North longwall panel, which disrupted <br />ventilation controls for the longwall mining system and the adjacent 5 North B continuous miner <br />development section. The Mine Safety and Health Administration (MSHA) investigated the <br />incident and withdrew the approval for longwall mining in 5 North panel. On December 17, <br />• Page 2 <br />