PERMFILE56951

• Permit No: C1981044
• IBM Index Class Name: Permit File
• Doc Date: 12/11/2001
• Section_Exhibit Name: EXHIBIT 04 AVF EXEMPTION REQUEST
• Media Type: D
• Archive: No

The result of the above geological evaluation is contained
in the John T. Boyd report. Portions of this January 21,
1976, report have been included as Exhibit R hereto. The
Boyd report and studX were conducted at a cost of approxi-
mately $250,000 and indicated the existence of 13 seams were
of a mineable thickness (greater than 4 feet) and showed the
areal extent of the coal within the lease boundary shown on
Exhibit A.
Criteria 4: Empire Developed a Mining Method and Extraction Plan
In 1971, Empire, through a predecessor operator, began
extracting coal from Eagle Mine No. 5 using the standard
room and pillar system of mining. These general mine layout
plans are from early 1976 and demonstrate that the "C ," "E,"
nF,n "H," and "P" seams were all regarded as portions of the
general Eagle Mine Complex and are thus all exempt since the
Eagle Mine Complex is exempt. This system was continued in
the layout and planning of the coal seams. Documentation of
the general mine layouts is shown on Exhibits I through 0
and Q. Further demonstrating that the entire acreage within
the leasehold was always considered by Empire to be a part
of the whole Eagle Mine Complex is the fact that in January
1976 the basic extraction rates for all of those coal seams
were determined by the John T. Boyd Company as shown on
Exhibit R. These quantities were further delineated for
' certain areas as shown on Maps I through M.
Criteria 5: Empire Developed a Corporate Objective
an
The objective and development plan of Empire synthesized
the mineable reserve with a mining method to produce coal in
commercial quantities. The objective was then predicated
upon timed capital expenditures to reach a planned produc-
tion goal. Exhibit P hereto indicates the ultimate produc-
tion goal of 2.8 million tons per year. Based upon that
rate, a schedule of capital expenditures for construction
and development was formulated by Empire and shown herewith
as Exhibit F hereto. This plan of development reflects the
fact that Empire has treated the area within its leasehold
as parts of one mining complex.
Criteri
nificant Financial and Leaal
in June 1976, Houston Natural Gas Company purchased the
stock of Empire for $27,500,000. At the time of purchase,
. this corporate commitment represented a substantial and
significant capital investment to develop the coal reserves
L held by Empire within the leasehold. Immediately, Empire
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