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• Rule 2.03 Second, the principal shareholder of both Coalgrace, Inc. and Coalgrace II, Inc.--Grace Energy Corp.-- does not have an "ownership or control" interest in any current or pending surface coal mining permits or operations in the United States, other than its "ownership or control" interest in HGCC. However, Grace Energy Corp. is the principal shareholder of Gracoal, Inc. (100%) and Gracoal II, Inc. (100%). Gracoal Inc. and Gracoal II, Inc. are the litnited parmers of Colowyo Coal Company L.P., a Delaware limited parmership and the holder of Colorado Mining Permit C-81-019. Gracoal, Inc and Gracoal II, Inc., as limited partners, have no involvement in the day-to-day operation, management, or control of Colowyo Coal Company L.P., and their rights aze limited solely to defined economic interests as specified under the terms of the Colowyo Coal Company L.P. Amended and Restated Limited Partnership Agreement. The sole general pazmer of Colowyo Coal Company L.P. is Kennecott Colorado Coal Company. Kennecott Colorado Coal Company, as the sole general pazmer, controls the day-to-day operation and management of Colowyo Coal Company L.P. HGCC does not believe that the limited pazmership interest induecdy held by Grace Energy Corp. via Gracoal, Inc. and Gracoal II, Inc. in Colowyo Coal Company L.P. satisfies the "owns and controls" definition and requirements of DMG's regulations. However, the following information on Colowyo Coal Company L.P. is provided solely if it is detemvned that the induect interest of Grace Energy Corp. in Colowyo Coal Company L.P. somehow satisfies the "owns and controls" definition and requirements. Colowyo Coal Company L.P. Agent: John P. Hazmon 5731 State Highway 13 Meeker, CO 81641 Colorado Mining Permit C-81-019 MSHA I.D. No. OS-02962 (issued October 1976) Additional information concerning Colowyo Coal Company L.P., including a listing of the officers and directors of Gracoal, Inc. and Gracoal II, Inc., may be found in the "Identification of Interest" section-- Section 2.03.4-- of Colowyo Coal Company L.P.'s Colorado Mining Pemvt C-81-019 application. Third, the principal shareholder of Grace Energy Corp. -- W.R. Grace & Co.-Conn. -- and its principal shareholder -- W. R. Grace & Co. -- do not have an "ownership and control" interest in any current or pending surface coal tnining pemuts or operations in the United States, other than then "ownership or control" interest in HGCC and any induect interest in Colowyo Coal Company L.P., as discussed above. (6)(a) The lands contiguous to the current Hayden Gulch Mine permit azea aze owned by HGCC. The lands contiguous to the pre-Phase II/Phase III paztial bond release aze owned by parties unaffiliated with HGCC or its pazent corporations. These lands aze operated as agricultural properties and contain no azeas where coal mining has occurred since 1977. Owners of Record (Mine Area, -Mineral: Routt County c/o Boazd of County Commissioners 136 6~h Street Steamboat Springs, CO 80477 • svpa'.R Gru/pem~i~AWnunu~u/RWe 2DJ ,/xlo~ .a 2.03-8 Revised - 6/01