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<br />(1) Assignment dated March 28, 1985, by and between Chimney Rock Coal, a New Mexico <br />limited partnership and Kaiser Steel Resources, Inc., a Delaware Corporation, recorded <br />April 23, 1985, at reception No. 130833 in the office of the Clerk and Recorder, <br />Archuleta County, Colorado. Assignment conveyed the leasehold estate of the following <br />property (Exhibit 1): <br />Township 34 North, Range 4, West N.M.P.M., South of the Ute Line <br />Section 30: SE'.4 NE'k, SW',G NE'/s, NE'.G SE'/s, E'fi NE'/a NE'/a NW'k SE'/a, N'k <br />SW'/a, Less 1 acre. <br />(2) Assignment dated March 28, 1985, by and between Perma Mining Corporation, a <br />Cotorado Corporation and Kaiser Steel Resources, Inc., a Delaware Corporation, <br />recorded April 23, 1985, at reception No. 130832 in the office of the Clerk and <br />Recorder, Archuleta County, Colorado. Assignment conveyed the leasehold estate of <br />Federal Coal Lease C-34886 covering the following property (Exhibit 1): <br />Township 34 Notch, Range 4 West, N.M.P.M., South of the Ute Line <br />Section 30: W'/x NW'/a NE'/a, SE'/a NW'/a NE'/a, E'h NE'/< NW'/a. <br />(3) Assignment of Permit dated March 28, 1985, from Chimney Rock Coal, a New Mexico <br />limited partnership, to Kaiser Steel Resources, Inc., a Delaware Corporation. <br />Assignment conveyed all operating licenses, permits and agreements (Exhibit 1). <br />2.03.7 Relationship to Areas Designated Unsuitable for Mining <br />(1) The permit area is not within an area designated unsuitable for surface coal mining <br />operations. <br />(2) No occupied dwellings are located within three hundred feet of existing surface <br />operations. <br />2.03.8 Permit Term Information <br />The area to be included in the term of this permit is described in 2.03.6 above and shown on <br />Map 1, Surface and Mineral Ownership. The permit term is a five (5) year period. During <br />1990, Kaiser began reclamation activities at the site which changed the temporary cessation <br />statues of the mine. <br />Date Permit Approved <br />Bond Company <br />April 15, 1988 <br />Security Paci£c <br />3737 Main Street <br />P.O. Box 712 <br />Riverside, CA 92502 <br />Robett L. Brown <br />2.03-10 Rev. 4/24/95 <br />