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~~ <br />Revised 11/1/94 <br />Axial Basin Ranch Company <br />5731 State Highway 13 <br />Meeker, Colorado 81641 <br />Attached please find updated Exhibit P and Exhibit Q showing the <br />location of the surface/subsurface ownership. There are no bids, <br />options, interests, etc. on lands which are contiguous to the <br />permit area. <br />Rule 2.03.5 Compliance Information <br />HG Coal Company has not had a Federal or State mining permit <br />for surface coal mining operations suspended or revoked in the last <br />five years nor has a mining bond instrument been forfeited. <br />HG Coal Company has received no violation notices during the <br />last three years. <br />A listing of previous violation notices received during the <br />last three years by Colowyo Coal Company, Permit C-81-019, MSHA <br />ID#05-02962, in connection with its surface coal mining operation <br />are set forth as follows. <br />1. NOV C-94-015 issued by CDMG on July 18, 1994 for failure <br />to conduct operations as specified in the permit; failure <br />to minimize disturbance to hydrologic balance and failure <br />to design sedimentation ponds to contain or treat runoff. <br />A request for vacation was submitted August 4, 1994; <br />assessment conference held with CDMG on September 20, <br />1994; settlement agreement submitted to operator <br />September 29, 1994; request for meeting with Division <br />Director to pursue vacation of NOV on October 11, 1994. <br />Abatement called for certifying that existing in-pit <br />mining related structures were capable of containing <br />runoff and sediment from disturbance area. Abatement <br />information submitted on July 22, 1994. NOV was <br />terminated on July 25, 1994. Current status of NOV is <br />pending. <br />2. NOV C-94-013 issued by CDMG on May 25, 1994 for failure <br />to construct a sediment control facility (sediment <br />control ditch). Abatement called for submittal of plans <br />for as-built of existing ditch. Civil penalty of <br />$1,250.00 was agreed upon per settlement agreement dated <br />July 27, 1994 after the July 25, 1994 assessment <br />conference. <br />