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Appendix C <br />Right of Entry and Operation Information <br />The Operator, bases its right to enter and begin surface coal mining operations in the <br />permit area upon the following documents: <br />1. The Operator owns and controls the Federal Coal Leases and Private Coal <br />Leases. <br />a. Federal Coal Leases - Federal Coal Leases C-0125515 and C-0125439 <br />are within the McClane Canyon Mine permit boundary. The BLM is in the <br />process of approving the assignment of the Federal Coal Leases to ARC <br />McClane Canyon, LLC. Copies of the Federal Coal Leases follow as <br />Exhibit 1 a. <br />b. Private Coal Leases - The private coal leases are applicable to the <br />McClane Canyon Mine. An explanation of the private coal leases follows <br />as Exhibit 1 b. <br />2. By letter dated February 16, 2006, The BLM gave authorization to access and <br />maintain ground water monitoring wells located on BLM managed land outside of <br />federal coal leases associated with the McClane and Munger Canyon Mines. <br />The rights of the Operator to enter and begin surface coal mining operations are not the <br />subject of any pending litigation. <br />SO-5 09/20 <br />