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BTU Empire Corporation -Eagle Mine Complex 2004 Liability Release Application -Responses to CDMG Comments The following restate and respond to comments from the Colorado Division of Minerals and Geology (CDMG) on BTU Empire Corporation's (Empire) recent liabiliry release application. 1) BTU-EC(RAGEC)statstlxitd~lamlarer~rrectifwztiatlistze~rsu~atadframt~ePAPandMgfatC,oemry Assessor's ~ Sereral owners not faced in d~ PAP, Weredalyn Cra2efarz~ Ro.~t aryl jermifer Sdrrie~rrDraay iX~dliamand FayeMrKr~ arulRdxrt and Rawld Std were ireducle<l in dyad aunt property ozerer r~tifuatiaz list irerify<rr' RAGE Cs list ~surfacr aryl and laaxlorvaers zeitli tlae azauy assessor's list is a rmxrrreredxl actiaz to assure tlxtt all curmrn lardou~rrs am irxltukrl in d~ sxaifualioPZ Please update doe PAP to irxlude the alaxtsrrentiaa~llara''and and ores and asnae tlxse iracliziduals are reared az doe appropriate surface oz~enhip orcarl ou~rrship rmps. Response: Both the PAP text (pages 2.03-15 through 2.03-20) and the surface and coal ownership maps (Maps 1 and 2) have been reviewed and corrected or updated, as appropriate. Copies of any revised PAP materials accompany these responses for replacement in the PAP document. 2) BTU-EC(RAGEC)update<llar.Sara'carlarmrrsiaztlxPAPinApril2004zeithMirroe-RerisianNa44. 7ba~i update! in the p the Dizisiaz Hare! dirt artdatecladdrssa were usaz' zehaaz BTU-E C(RA GEC) sera rx>afuaticva to Mr. J~yHerrro~, C~tdeyLanda+rlCml ~ andMr. RcJxrtA. Mito~1L Please notifydaae ssafaco ormzl ourx~s usirg the zrpdateclac%hssa pmcidcrl inMR-44. 7Tie Dizisiaz noted that BTU-EC(RAGEC) land rear rtteize<l "n~ipt atrrls° bzdz from dose adclmsses. Response: Based on the corrections/updates referenced in the response to Comment 1, follow-up notices have been sent, as appropriate, to the referenced landowners (See accompanying documentation). 3) BTU-E C (RA GE C) u~r/ates SL-02 Map 1, "L ial~'lity ReleaseArras" to ir~rlud~ °... only auras acen'ying ar zaidiin the an~e ¢drawgFd~e lristoric rrire zeonhi+~x and vaithin die permit bxaadanes°. BTU-EC(RA GEC) cktPrnsr~l this aura to aauain 665 acre. Wn~z the Dizision cligitizeclMap 23, "Eagle Na S F-Seam Wo>{zirgs ; the Divsian's rt3ult wu approx irmtely 335 cos. As stated in the pemit (jhige 2.OS-SI (rerisecl7/1 S/98) die azera~e art~e gFdrawis 19 degras. Please qtly indude those auras dxu zeoerld faU eeithin t{~ prrgarcrl angle ~'cb-aw Response: Map 1 initially included the Eagle No. 5 Honing areas and all adjacent areas within the Empire Mine Permit Boundaries to the north, south, and west (approximately 1,065 acres). Based on initial comments from the CDMG, this area was reduced to include only the Eagle No 5 mining areas and areas within the average angle of draw (approximately 19 degrees). In order to facilitate clear delineation and description of the proposed liability release area, where the resulting liability release boundary was irregular or did not correspond to legal land boundaries, it was extended to the nearest quarter-quaver section line and blocked to create regular polygonal shape. The resulting polygon, as shown on the revised Map 1, was then used to delineate and detemvne the corresponding acreage (approximately 665 acres) for the proposed liability release area. BTCT-Empire Corp. subsequently revised the proposed liability release boundaryto eliminate an area (approximately 217 acres) of previous underground mining where variations in mining method and extraction rate make accurate assessment of subsidence potential questionable. This second revision of the boundary resulted in a reduction of the proposed liability release area to approximately 448 acres. A revised map, reflecting the adjustments of the liability release boundary, and revised liability release text, reflecting the reduced acreage, accompanies these responses.