2025-02-03_PERMIT FILE - C2010089 ‎(2)‎

• Permit No: C2010089
• IBM Index Class Name: Permit File
• Doc Date: 2/3/2025
• Doc Name: Legal, Financial, & Compliance and Related Information
• Section_Exhibit Name: Section 2.03
• Media Type: D
• Archive: No

Section 2.03 Page 2.03-13 January 2025 (MR-39)
bounded by Montrose County Roads 2600, 2650, and AA. The permit area also
includes corridors for a pond flume, water pump and light use road.

2.03.6-1 Appendix 2.03.6-1(a) through 2.03.6-1(f) at the end of this section gives the
following information to evidence right of entry for mining:

1. Appendix 2.03.6-1(a). Memorandum of Surface Lease and Purchase
Agreement dated August 7, 2009 between Garvey & Co., a Colorado General
Partnership and Western Fuels-Colorado, a Limited Liability Company. The
lease pertains to the surface at SW1/4, Section 25, T47N, R16W, NMPM. The
lease gives WFC right to enter and mine the property. Garvey & Co. has
subsequently changed the name to Garvey & Co. LLC. A letter informing of
the change is attached behind the lease agreement.

2. Appendix 2.03.6-1(b). This Appendix includes two documents; (1)
Memorandum of Escrow Purchase Agreement dated June 27, 1978 between
Donald J. Rice and Marianna Rice (“Sellers”) and Peabody Coal Company
(“Buyer”). Under this agreement Sellers sold to Buyer their rights to coal under
W1/2SW1/4, Section 25, T47N, R16W, NMPM and (2) Addendum to Escrow
Purchase Agreement between Donald J. Rice and Marianna Rice (“Sellers”)
and Peabody Coal Company (“Buyer”) dated 10th day of February, 1992 where
Peabody, with Sellers’ consent, transferred its rights to the assets to Western
Fuels-Colorado, A Limited Liability Company.

3. Appendix 2.03.6-1(c). Correction Special Warranty Deed dated November 8,
1995 from San Miguel Power Association to WFC for the property at
E1/2SW1/4, Section 25, T47N, R16W, NMPM.

4. Appendix 2.03.6-1(d). Warranty Deed between Thomas M. Meehan & Peggy
Jo Meehan and Western Fuels-Colorado, LLC

5. Appendix 2.03.6-1(f). Quitclaim Deed dated 16th day of October, 2002 between
San Miguel Power Association, Inc. (SMPA) and Western Fuels-Colorado.
Under this agreement SMPA sold to WFC the property in NW1/4 and
W1/2NE1/4, Section 36, T47N, R16W, NMPM.

None of the above referenced rights is the subject of pending litigation.

2.03.6-2 Severance of Minerals Estate

The surface and the minerals are owned separately in SW1/4 of Section 25, Garvey