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Colowvo Coal Company <br />Colowvo Mine Loeical Mining Unit Modification <br />STATE COAL LEASE <br />257/135 1,280.16 T. 3 N. R. 93 W.. 6th PM <br />sec. 16: all. <br />T. 4 N., R. 94 W., 6th PM <br />Resurvey of section 36 described as Follows: <br />sec. 25: lots 2, 4, 6, 8, 9, 10, 11, 12; <br />sec. 26: lots 2, 4; <br />sec. 35: lots 1, 4, 5; <br />sec. 36: lots 2, 3, 4, 5, 6, 7, 8, 9, 12, 13, 15, 17. <br />Total Nonfedzral - 1,280.16 acres <br />Total Acreage - 13,299,78 acres <br />2. UNIT OPERATOR: Colowvo Coal Company, 5731 State Highway 13, Meeker, <br />Colorado 81641, is hereby designated as Unit Operator. <br />3. STIPULATIONS: As a consideration to the. approval of this LMU modification, the <br />operator/lessee consents to the following stipulations which make all federal leases within the <br />LMU subject to uniform requirements for submittal of a resource recovery and protection <br />plan, LMU recoverable coal reserves exhaustion, diligent development, continued operations, <br />maximum economic recovery, advance royalty, and royalty reporting periods (but not royalty <br />rates), and the regulations under 43 CFR Part 3400. As of the effective date of this LMU, <br />[he diligence terms and conditions of the federal leases are subject to, or are superseded by, <br />the diligence requirements imposed on the LMU. <br />a. SUPERVISION: The Area Manager located at Bureau of Land Management, <br />1280 Industrial Avenue, Craig, Colorado 81625, is responsible for the review and approval <br />of the exploration plans and operations, and modifications thereto, prior to the <br />commencement of mining operations within a permit area approved pursuant to the Surface <br />Mining Control and Rec]amation Act of 1977. The Area Manager is also responsible for <br />review and approval of resource recovery and protection plans and modifications thezefo. <br />The Area Manager is also responsible for inspection and enforcement, including production <br />verification, of such operations and all lands and all coal within the LMU and for <br />implementing all other applicable provisions of the 43 CFR 3400 rules. <br />b. RESOURCE RECOVERY AND PROTECTION PLAN: An amended resource <br />recovery and protection plan (R2P2) was submitted with this LMU modification application <br />and has been found complete and satisfactory. <br />3 <br />