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3. The LMU recoverable coal reserves are capable of being developed in an economical, <br />efficient and orderly manner as a unit, with due regard for the conservation of the <br />recoverable reserves and other resources. <br />4. MCC can attest that all lands and federal coal leases in the LMU, as modified, are under <br />the effective control of MCC and are held by MCC and Ark. <br />5. All lands within the modified LMU will be developed and operated as a single operation, <br />and the E Seam, B Seam and any other recoverable reserves within the modified LMU <br />will be developed as a continuation of the existing West Elk Mine. <br />6. All lands within the modified LMU boundary are contiguous as shown on the attached <br />LMU map. <br />7. MCC will achieve maximum economic recovery of the federal recoverable coal reserves <br />within the modified LMU. <br />8. No federal coal leases to be included within the modified LMU are included in another <br />Logical Mining Unit. <br />9. Except for the modification areas for both Federal Coal Leases COC -1362 and COC - <br />67232, the parent leases and all other leases within the modified LMU are within MCC's <br />current approved CDRMS SMCRA Permit. As presented in "2" above, a Permit Revision <br />application will soon be submitted to the CDRMS, OSM and BLM incorporating the area <br />of the two modified leases into MCC's SMCRA Permit. <br />10. The total acreage of the modified LMU is 13,443+/- acres (i.e. less than 25,000 acres.) <br />Attached are the face pages for modified Federal Coal Leases COC -1362 and COC - <br />67232, providing the legal descriptions for the modified area for lease COC -1362 to be <br />added to the LMU and all of modified lease COC -67232 to be added to the LMU. Also <br />attached is a copy of the face page for Federal Coal Lease COC -54558. MCC requests <br />that this lease be relinquished and removed from the LMU. <br />IS:6 NV 01 yyW 81QZ <br />