2018-02-05_PERMIT FILE - C1992081A (5)

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TAB 1 HAYDEN GULCH LOADOUT PERMIT SUMMARY Introduction On September 28, 1992, Hayden Gulch Terminal, Inc. (HGTI), a subsidiary of Peabody Energy Corporation (Peabody), entered into an Asset Purchase Agreement with H -G Coal Company and Axial Basin Ranch Company to purchase, among other assets, a coal loading facility, the "Hayden Gulch Loadout", which is located in Routt County, Colorado, approximately 1.5 miles southeast of the Town of Hayden, Colorado. This coal loading facility was originally included in H -G Coal Company's permit application package for the Hayden Gulch Mine, a surface coal mine permitted under Mining and Reclamation Permit No. C-80-003 by the Colorado Mined Land Reclamation Division (a precursor to the Colorado Division of Reclamation, Mining and Safety [CDRMS]) on January 4, 1982. The permit was renewed by H -G Coal Company on two occasions: January 4, 1987 and January 4, 1992. Permit No. C-80-003 (as originally approved in 1982) included geographically distinct permit areas covering the coal loadout and the surface mine. The loadout facility area, located seven miles northeast of the mine site, as originally permitted contained 134 permitted acres of which 54 were reported to be disturbed. In 1986, coal production ceased and final reclamation operations commenced at the surface mine. Concurrently, operations ceased at the loadout, although it was not reclaimed by H -G Coal Company in anticipation of future development of coalreserves it held in the area of the Hayden Gulch Mine. The closing between HGTI and H -G Coal Company and Axial Basin Ranch Company under the Asset Purchase Agreement was contingent upon certain conditions. These conditions included the transfer of issuance, as appropriate, of permits needed to operate the loadout facility without any material adverse change in the permit conditions, requirements, or limitations (or reasonably satisfactory evidence is received by Hayden Gulch Terminal, Inc., that such transfers or issuances will be approved by the appropriate regulatory authority). The September 1992 Asset Purchase Agreement did not include the mine site. Consequently, transfer of Permit No. C-80-003 was inappropriate, and Hayden Gulch Terminal, Inc. submitted a new application (dated December 14, 1992) to operate the coal loading facility pursuant to the Regulations of the Colorado Mined Land Reclamation Board for Coal Mining. In 2010, the operating entity was changes to a limited liability company, and HGTI became Hayden Gulch Terminal, LLC (HGT). RN17-05 1-2 Revised 11/17