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2.05.2 <br />The reserve was initially accessed through the D-2 Seam. The initial five <br />year permit term was for mining the D-2 Seam in the fee and Federal <br />property. During March 1999, the Operator obtained Federal Right -of -Way <br />COC -62688. This right-of-way allowed the Operator to develop Federal coal <br />for ventilation and access entries. These ventilation and access entries were <br />developed in two locations; 1) northwest of the Operators fee coal and; 2) <br />along the east boundary of the Operators fee coal. <br />During the first quarter of 2000 the Operator obtained Amendment No. 1 to <br />Federal Right -of -Way COC -62688. This right-of-way allowed the Operator to <br />develop Federal coal. The Federal coal involved included an extension of <br />the North Mains and mining most of the D3 headgate. This mining was <br />necessary so longwall panel D3 could be blocked out and ready to mine. <br />Federal Coal lease COC -61209 was effective September 1, 2000. This coal <br />lease allowed the Operator to extend its development to the north into <br />Federal Coal. During June 2000 the Operator amended the permit (TR -16) <br />to allow advance of the D4 headgate and the North Mains so longwall panel <br />D4 could be blocked out and ready to mine. The amendment also provided <br />for extending the bleeder system to the north. During September 2000, the <br />Operator amended the permit (TRA 8) to allow longwall mining in Federal <br />and private coal at the west end of the D2 Panel and at the western edge of <br />Bowie Resources LLC's fee coal property in the D3 Panel. <br />During February 2001, the DRMS approved the Operator's mine plan <br />revision which included mining in the Iron Point Federal Coal Lease. <br />The Operator developed portals in the B -Seam and initiated development in <br />the B -Seam late in 2003. Longwall mining in the D -Seam was completed <br />during March 2005. Longwall production was initiated in the B -Seam during <br />April 2005. Mining continued in the Iron Point Federal Coal Lease until work <br />began to access reserves to the west. <br />The permit was revised by PR -12 to develop access to the west under Terror <br />Creek to mine the coal in the Bowie No. 1 Mine east pod. Coal will be mined <br />from leases C-37210, C-27432 and D-36955. These leases were originally <br />TR -14 2.05-2- 03/14 <br />