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Oakridge Energy, Inc. <br />4613 Jacksboro Hwy. <br />Wichita Falls, TX 76301 <br />The mine name is the Carbon Junction Mine (MSHA, I.D. No. 05-03683). <br />There are no outstanding bids, options or interests in lands which are a part of this permit. <br />The applicant is a leaseholder of additional lands in the general area. <br />2.03.5 Compliance Information <br />The applicant, its subsidiaries, affiliates, and/or persons controlled by or under common <br />control with the applicant have never had a federal or state mining permit revoked or <br />suspended except as discussed below. Neither has the same forfeited a bond norsimilar <br />security except as discussed herein. Because of a loss ofits prime bonding company, <br />Oakridge entered into a special mutual agreement for succession of activities pending <br />bond replacement. Its permit was accordingly revoked pending replacement of a valid <br />bond.Subsequently, Oakridge provided a replacement bondand obtained a new CDRMS <br />mining and reclamation permit.Information regarding the 1990-1992 activities of the <br />Colorado Mined Land Reclamation Board has been included in Appendix 3-5. <br />Pueblo Coal Inc. (PCI) was the predecessor permittee and operator of the Carbon <br />Junction Mine under CDRMS(then CMLRD) permit C-82-054, issued in 1983. In 1988, <br />PCI filed for bankruptcy under Chapter 11. Approximately one year later, the bank <br />which issued the reclamation bond was closed by the Comptroller of the Currency. Due <br />to these circumstances, the Mined Land Reclamation Board revoked the mining and <br />reclamation permit (C-82-054) and forfeited the performance bond. The claim on the <br />performance bond was denied by the Federal Deposit Insurance Corporation. <br />Subsequently,Oakridge Energy provided performance bond coverage and submitted a <br />new permit application to CDRMS. The new permit application (C-92-080) was <br />reviewed and accepted by CDRMS. Oakridge Energy provided acceptableperformance <br />bond coverage throughout the process, and the operation is adequately permitted and <br />bonded at this time. The details of the above historical events are fully described in <br />CDRMS records. <br />Oakridge Energy, Inc. received a Notice of Violation (CV-2013-005) issued May 23, <br />prevailing <br />2013 for,”failure to minimize damage to thehydrologic balance within the <br />permit area” along a portion of the Carbon Junction Canyon. The required abatement <br />was on November 19, <br />measures were completed and the Notice of Violationterminated <br />2013. <br />2.03.6 Right of Entry and Operation Information <br />OEI's right of entry ispredicated upon a coal mining lease from the Elizabeth Anne <br />Ewing Trust et al, transferring a 25 percent undivided interest in the coal rights to OEI. <br />Abridged Permit Document3-7Permit Renewal RN04 4/2014 <br />