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2012, MSHA approved a plan to recover the longwall mining equipment. Prior to the equipment <br />being recovered, a second bounce occurred on January 2, 2013. This bounce again interrupted <br />the mine ventilation and a second investigation of the area was initiated by MSHA. During this <br />investigation, an increase in carbon monoxide was found in the mine ventilation air, indicating a <br />possibility of self- heating of the coal in the longwall panel. On January 9, 2013, MSHA issued <br />an order requiring the mine to be evacuated and all power to the underground mine be <br />disconnected. The affective area was sealed from mine ventilation with first a set of temporary <br />seals and then a set of approved mainline seals. The longwall and surrounding area to the <br />longwall remained seal with less than 1% oxygen for over 200 days. In early August 2013, <br />MSHA approved a plan to re- ventilate the longwall section. Two seals were removed and the <br />mine ventilation was modified on August 15 to purge the methane and circulate air through the <br />longwall section. The mine was examined and found to be free of hazardous conditions and <br />MSHA approved a plan to recover the equipment. On August 28, prior to the longwall being <br />recovered, an increase in carbon monoxide indicated that the spontaneous combustion had re- <br />kindled and provided a significant risk of a methane explosion. On August 29, the seals were <br />closed to remove the oxygen in the affected area. On September 16, 2013 a decision was <br />made that the equipment could not be safely recovered and all effort to recover the equipment <br />would be stopped. On October 1, 2013 a workforce reduction was initiated affecting 142 <br />employees. The development of future longwall gated roads resumed until December 2 when a <br />decision was made to completely idle all development work. An additional 115 employees were <br />laid off. The mine is currently being ventilated and maintained for future mining. No coal <br />extraction is planned for the near future. <br />Application of Suspension Criteria: <br />Oxbow Mining has an approved CDRMS mineplan which will maximize economic coal recovery <br />for both leases. All surface facilities, land issues, permits, etc are in place. The suspension of <br />the requirement for continued operations on the leases is in the interest of Oxbow, and the <br />Bureau of Land Management: <br />• The suspension will conserve a resource that has provided revenue to the United States <br />for over a decade and preserve continued access to the coal resource through the <br />existing Oxbow Mining facilities. <br />• If the suspension application was denied, and the leases relinquished, reclamation of the <br />Oxbow facilities could be triggered under the terms of the CDRMS Permit. Portals would <br />be sealed and reclamation initiated. <br />• Futures access to unmined but permitted recovery of coal resources would cease <br />operation and the coal resource would likely be lost. The current Oxbow mineplan calling <br />for mining through 2017 would be abandoned. <br />• Oxbow has applied for the B seam lease under both leases. The B seam under both <br />leases will be accessed from the current D seam workings with a rock slope. Should the <br />suspension application be denied, and the leases relinquished, it is unlikely that the B <br />Seam reserves will be recovered. The remaining D seam and potential B seam reserves <br />will be bypassed and never recovered. <br />• If the suspension application is denied, Delta County and Gunnison County will be <br />prematurely denied substantial levels of employment ( +300 miners) and the resultant <br />loss of taxes and royalties necessary to support county schools, roads, hospitals, <br />infrastructure, etc. <br />• Page 3 <br />