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EMPIRE ENERGY CORPORATION REQUEST FOR AFFIRMATION OF ~~' ' ALLUVIAL VALLEY FLOOR REQUIREMENTS • EXEMPTION PRELIMINARY STATEMENT Empire Energy Corporation (hereinafter "Empire") has an underground coal mine which underlays certain alluvial valley floor areas. Empire believes that its operations are, as a matter of law, exempt from the restrictions on mining in alluvial valley floors and submits this request to have its rights affirmed by the Office of Surface Mining and the State of Colorado. I. REQUEST FOR AFFIRMATION OF EXEMPTION Empire pursuant to Section 510 (b)(5) of the Federal Surface Mining Control and Reclamation Act ('FSMCRA") (30 USC 1260 (b)(5)) and CRS 33-34-114(2)(e), hereby requests an acknowledgment that it is exempt from the alluvial valley floor requirements (herein sometimes referred to as "grandfathering") for certain areas. In support of this request, Empire sets forth the following: II. BACKGROUND Empire is a developing underground coal mining operation located approximately seven miles southwest of Craig, Colorado, off of State Highway 13/789. Empire Energy began operations through a predecessor operator in 1971 and has continuously produced coal in commercial quantities since that date. A history of annual coal production is attached hereto as Exhibit E. While coal has been extracted in commercial quantities, the mining operation has been in a development stage since 1971 and will continue to be in development until its full planned production capactiy is achieved on an annualized basis. Under full planned development, the mine operation will extract coal from five coal seams through a series of portals and will process all coal through a single handling and loading facility. A series of mineable coal seams which successively overlay each other exist on Empire's property. Among the seams are, in descending order, the "P," "H," "F," "E," and "C" coal ~. 1