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2.03.6 -RIGHT OF ENTRY AND OPERATION INFORMATION
<br />The King Coal Mine is located in portions of Sections 31 and 32; Township 35 N,
<br />Range 11 W, N.M.P.M., Section 36; Township 35 N, Range 12 W, N.M.P.M., and
<br />Sections 5 and 6; Township 34 N, Range 11 W, N.M.P.M., all in La Plata County,
<br />Colorado. The surface of the area to be mined is owned by Lawrence Huntington,
<br />Alice Paulek, Fred Paulek, Loretta Lee, Linda Matticks, Ronald Crawford, Norris
<br />Crawford, Marc Crawford, Thomas L. and Patricia Compton, and the State of
<br />Colorado, with the exception of private property belonging to National King Coal,
<br />LLC. All mining activities of the King Coal Mine lie to the south side of Hay Gulch,
<br />approximately 4.5 miles southwest of Hesperus, Colorado, as identified on U.S.G.S.
<br />7.5 Minute Quadrangles for Hesperus and Kline. None of the leases or legal right to
<br />enter is the subject of pending litigation.
<br />LEGAL DESCRIPTION OF ACCESS ROAD
<br />Tract in Sections 29 and 30, T 35 N., R 11 W., N.M.P.M. Beginning at a point on the
<br />South line in said Section 29, whence SW corner of said Section 29 beazs West, 9.16
<br />feet; Thence N 22 37' W, 551.30 feet, more or less to south right-of--way in Hay
<br />Gulch County Road; Thence N 84 23' E, 82.09 feet, to West right-of--way in Wright
<br />Coal Mine Road; Thence S 22 37' E, along said line, 560.0 feet to South line of said
<br />Section 29; Thence West along said South line 85.04 feet to point of beginning,
<br />approximately .92 acres. (Deed of 'bust; Microfilm #403958)
<br />This access road connects County Road 120 with permit azea. Also included on
<br />Microfilm #403958 aze two tracts of land which include much of the surface facility
<br />azea of the King Coal Mine.
<br />Map A-1 shows the location of the King Coal Mine site. The disturbed azea is shown
<br />on Map. Maps C-1 and C-2 show the surface ownership and mineral ownership
<br />respectively of National King Coal and surrounding lands.
<br />SOURCE OF LEGAL RIGHT TO ENTER
<br />National King Coal, LLC holds the following deeds, perpetual easements and coal
<br />leases.
<br />A) Federal Coal Lease #COC-60941 (194.79 acres)
<br />Coal recoverable by underground methods in Upper Menefee seam only.
<br />Section 6, Lots i - 5 (inclusive): NE/4 SW/4, NW/4 SE/4
<br />All in T34N, R11W, N.M.P,M.
<br />Surface owner: Huntington Ranches, LLC
<br />Date of execution: 10/ 1/98
<br />Federal Coal Lease #COC-60941 (Modified 12/ 1/99 to add 160 acres)
<br />Coal recoverable by underground methods in Upper Menefee seam only.
<br />Section 6; E/2 SW/4 SE/4, SW/4 SW/4 SE/4
<br />Section 7; NE/4 NE/4, NE/4 NW/4 NE/4
<br />Section 8; N/2 NW/4
<br />~ NO//I/4~ %IGI////N //% ////ilI///%/% /I/%i///%I///I% // N%I/%~N/d /// i/~I//% I/~ W /I/I/%~///I/%I/% ~ .f////I% //A
<br />National King Coal, LLC King I Mine
<br />Section 2.03.6
<br />Page 1 Mazch, 2006
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