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• 2.05.2 <br />• <br />I • <br />P R-08 <br />/'~PPRovE~ <br />q~15~o3 <br />The reserve was initially accessed through the D-2 Seam. The initial five <br />year permit term will be 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 Operatorto 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 <br />to develop Federal coal. The Federal coal involved included an extension <br />of 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 allows the Operator to extend its development to the north into Federal <br />Coal. During June 2000 the Operator amended the permit (TR-16) to allow <br />advance of the D4 headgate and the North Mains so longwall panel D4 can <br />be blocked out and ready to mine. The amendment also provided for <br />extending the bleeder system to the north. During September 2000, the <br />Operator amended the permit (TR-18) 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 Limited's fee coal property in the D3 Panel. <br />During February2001, the DMG approved the Operator's mine plan revision <br />which included ming in the Iron Point Federal Coal Lease. <br />The Operator intends to develop new portals in the B-Seam and initiating <br />development in the B-Seam during the second half of 2003. Mining in the <br />D-Seam will continue until reserves are depleted. Longwall production will <br />then be moved to the B-Seam. The permit will be revised later to include <br />developing access to the west under Terror Creek to mine the coal in the <br />Bowie No. 1 Mine east pod. <br />2.05 - 2 - oz/o3 <br />