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2.03.6 - RIGHT OF ENTRY AND OPERATION INFORMATION <br /> The King II Mine is located within Sections 35 8v 36; Township 35 N, <br /> Range 12 W, N.M.P.M., in La Plata County, Colorado. The surface and <br /> minerals of the area to be mined are owned by the State of Colorado and <br /> the Dept. of the Interior, Bureau of Land Management. All mining <br /> activities of the King II Mine lie to the north side of Hay Gulch, <br /> approximately 4.5 miles southwest of Hesperus, Colorado, as identified <br /> on U.S.G.S. 7.5 Minute Quadrangles for Thompson Park, Hesperus, <br /> Mormon Reservoir, and Kline. None of the leases or legal right to enter <br /> are the subject of pending litigation. <br /> LEGAL DESCRIPTION OF KING II PERMIT AREA <br /> T 35N, R 12 W, NMPM, North of Ute Line; Section 36, comprising 640.00 <br /> acres, more or less. (State of Colorado, State Board of Land <br /> Commissioners Coal Mining Lease CO-3388). Actual surveyed <br /> acreage of this parcel is 694.2 acres. <br /> T35N, R 12 W, NMPM, North of Ute Line, Section 35, north half of the <br /> southeast quarter, containing 80.0 acres, more or less. (U.S. <br /> Dept. of the Interior, Bureau of Land Management Coal Mining <br /> Lease COC-62920). <br /> SOURCE OF LEGAL RIGHT TO ENTER <br /> GCC Energy, LLC holds State of Colorado Coal Lease CO-3388, applying <br /> to the permit area described above, which was issued by the State of <br /> Colorado, State Board of Land Commissioners on September 13, 2004. <br /> GCC Energy, LLC also holds coal lease COC-62920, applying to the <br /> permit area described above, which was issued by the Dept. of the <br /> Interior, Bureau of Land Management on November 1, 2002. <br /> These leases grant GCC Energy, LLC rights to access and mine the <br /> property for coal, in addition granting the right to use as much of the <br /> surface of the property as necessary in support of coal mining. The right <br /> to subside the surface is also granted. <br /> Copies of these leases are included in Appendix 1. Further terms and <br /> rights are contained within the lease documents. <br /> These leases are not the subject of pending litigation. <br /> The surface and mineral estate have not been severed for this property. <br /> GCC Energy, LLC King II Mine <br /> Section 2.03.6 <br /> Page 1 June 12, 2020 (PR-10) <br />