2014-10-03_REVISION - C1992080 (2)

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Oakridge Energy, Inc. 4613 Jacksboro Hwy. Wichita Falls, TX 76301 The mine name is the Carbon Junction Mine (MSHA, I.D. No. 05- 03683). There are no outstanding bids, options or interests in lands which are a part of this permit. The applicant is a leaseholder of additional lands in the general area. 2.03.5 Compliance Information The applicant, its subsidiaries, affiliates, and/or persons controlled by or under common control with the applicant have never had a federal or state mining permit revoked or suspended except as discussed below. Neither has the same forfeited a bond nor similar security except as discussed herein. Because of a loss of its prime bonding company, Oakridge entered into a special mutual agreement for succession of activities pending bond replacement. Its permit was accordingly revoked pending replacement of a valid bond. Subsequently, Oakridge provided a replacement bond and obtained a new CDRMS mining and reclamation permit. Information regarding the 1990 -1992 activities of the Colorado Mined Land Reclamation Board has been included in Appendix 3 -5. Pueblo Coal Inc. (PCI) was the predecessor permittee and operator of the Carbon Junction Mine under CDRMS (then CMLRD) permit C -82 -054, issued in 1983. In 1988, PCI filed for bankruptcy under Chapter 11. Approximately one year later, the bank which issued the reclamation bond was closed by the Comptroller of the Currency. Due to these circumstances, the Mined Land Reclamation Board revoked the mining and reclamation permit (C -82 -054) and forfeited the performance bond. The claim on the performance bond was denied by the Federal Deposit Insurance Corporation. Subsequently, Oakridge Energy provided performance bond coverage and submitted a new permit application to CDRMS. The new permit application (C -92 -080) was reviewed and accepted by CDRMS. Oakridge Energy provided acceptable performance bond coverage throughout the process, and the operation is adequately permitted and bonded at this time. The details of the above historical events are fully described in CDRMS records. Oakridge Energy, Inc. received a Notice of Violation (CV- 2013 -005) issued May 23, 2013 for, "failure to minimize damage to the prevailing hydrologic balance within the permit area" along a portion of the Carbon Junction Canyon. The required abatement measures were completed and the Notice of Violation was terminated on November 19, 2013. 2.03.6 Right of Entry and Operation Information OEI's right of entry is predicated upon a coal mining lease from the Elizabeth Anne Ewing Trust et al, transferring a 25 percent undivided interest in the coal rights to OEI. Abridged Permit Document 3 -7 Permit Revision PR 019/2014