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BTU Empire Corporation -Eagle Mine Complex 2004 Liability Release Application -Responses to CDMG Comments The following restate and respond to commenu from the Colorado Division of Mmerals and Geology (CDMG) on BTU Empire Corporation's (Empire) recent liability release application. I) BTU-E C (RA GE C) slats that the laredazarr r~ifuatiaz list tens u~a'atal fiam the PAP mrl Mat Cowuy Assssa's ~ Sereral ocereeis rat farad in the PAP, Woadalyn Craufrnr~ Rea~rt arrlJavufet-Sd~rierrrDtuv; Wt/liamand Fa~eMa'frmr; aryl Ralxrt and Ratald Std teeie indudal in thea~aar2 prgc~rty acenernnrifuutiar Gst Verifying RA GE C's list gFsurface aryl coal lmrdarearrs Leith the ~+'uY assasw's Gst is a ra~rrrerded adiaa to au:Ae that all amaulatrlov»n mr min ~ na*ifualia~t Please ate tl~PAP to irxliale ~ealane»rruiantellandarrl awl ozvaen and assaor these vrclitiduals am narsf an the appropriate stofare meneship ar awl otu~ship rraPs. es once: 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)updata~landar~dmalourx~sirttl.~PAPinApril2004teitliMirrw~RerisicvtNa44. 7yia,~i updated in the perm; the Diu'sian noted tlxit aadatexl address teen reed zJxn BTU-E C (RAGEC~ sera reoaificittiaa to Mr. J~eryHema~, Crra~leyLandarylCoal Cam arrlMr. Rdz~tA. Mird~alL Place these surface oraxtl ot~s usirg the updated addrsss pvridedinMR-44. 71xDitisian rroPttl tlxu BTU-EC(RAGEC) lard not rtxeizad "rtteipt cards" lxwk from these adcbesses. Response: Based on the corrections/updates referenced in the response to Comment i, follow up notices have been sent, as appropriate, to the referenced landowners (See accompanying documentation). 3) BTUEC(RA GEC) updates SL-02 Map 1, °L ialrilityReleuseAmas" to irr a .. a~rlyareas ateilyirg artatliirt tl>eart~e cfdxawgf~tl~histaricrrirn ternki~s aryl within tlppr»rit laris'. BTU-EC(RA GEC,1 deterrrir~l fhu ama to cauavr 665 aos. ly/lxrt the Drrisian ch'guized Map 23, Ea~e Na S F-Seam Worizirgx ; the Dizisian's result tatuapprrn:imately335acrs. Asstata~irtthepe~nit(pribe2.05-51(rrcuua~7/15/98)th~eatera~ear~ecfdrawisl9 degas. Please only induck thane areas that tewld fall taithin the prya~l are gf'draw Response: Map 1 initially included the Eagle No. 5 mining areas and all adjacent areas within the Empire Mine Pem~it Boundaries to the north, south, and west (approximately 1,065 acres). Based on initial commenu from the CDMG, this area was reduced to include onlythe 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 resuhing liability release boundarywas irregular or did not correspond to legal land boundaries, it was extended to the nearest quarter-quarter section line and blocked to create regulu polygonal shape. The resuhing polygon, as shown on the revised Map 1, was then used ro delineate and determine the corresponding acreage (approximately 665 acres) for the proposed liability release area. BT[~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 adjustmenu of the liability release boundary, and revised liability release text, reflecting the reduced acreage, accompanies these responses.