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below the "F" seam. The Eagle Mine No. 9 which has operated <br />under permit from the State of Colorado since March 24, <br />1977, extracts coal from the "P" seam--a seam above the "F" <br />seam mined in Mine No. 5. The planned Eagle Mine No. 8 will <br />mine the coal in the "H" seam which is stratigraphically -- <br />located between the "F" and "P" seams now mined by Eagle <br />Mines No. 5 and 9, respectively. <br />Although the 6, 7, and 8 mines are planned for the "E," "C," <br />and "H" seams, respectively, mining operations in those <br />seams has been occurring for a long time. For example, as <br />long ago as the 1930s the Fields Mine operated in the "E" <br />seam. The Wise Mine and Wise Hill No. 2 Mine operated in <br />the "C" seam in the 1940s and 1950s. Similarly, the Leo <br />White and the Baker Mines operated in the "H" seam during <br />the 1930s as did the Wise Hill Nos. 3 and 4 Mines in the <br />1970s. <br />All of the above described Eagle Mine Complex is within the <br />"Lease Boundary" identified on Exhibit "A" hereto and is <br />either within the area identified on that exhibit as being <br />the "Adjacent Area" to the alluvial valley floor, or is <br />within the area identified as "Alluvial Valley Floor." <br />The Eagle Mines Nos. 6, 7, and 8 are an integral part of <br />Empire's objective to develop a facility production rate of <br />2.8 million tons per year and to construct a unit train <br />loading facility and general mine facility complex as set <br />forth in Exhibits F and P. Since these planned mines are <br />located stratagraphically below and above the existing <br />mines, mine coal in the same geological formation as the <br />existing mines, are to be serviced by a single coal handling <br />and loading facility, and are all an integral part of the <br />Mine Operations Plan adopted by Empire prior to August 3, <br />1976 and January 1, 1977, this grandfather exemption <br />includes all of the aforementioned seams and activities <br />which comprise the Eagle Mine Comples "mine operation." <br />Although Congress did not delineate what criteria would <br />indicate the exact extent of a surface coal mining operation <br />that would be exempt, Empire believes that the following <br />indicia should be used for this purpose: <br />1) Whether the operation has a defined lease <br />boundary. <br />2) Whether the cesource has been explored to <br />delineate its size extent. <br />3) Whether a geological evaluation of the potential <br />• reserves has been conducted. <br />8 <br />