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RULE 2 -PERMITS <br />2.02 -GENERAL REQUIREMENTS FOR COAL EXPLORATION <br />2.02.2 • Exploration Involving Removal of 250 Tons or Less of Coal <br />OMI has developed an ongoing exploration program designed to accurately delineate and <br />chazacterize available coal reserves and to provide planning and operational information on <br />coal depth, thickness, quality and geologic conditions. The exploration program is designed to <br />incorporate the flexibility necessary to address changing mining conditions and coal mazkets <br />and may, therefore, include geophysical methods, surface trenching, surface rotary drilling and <br />coring, underground rotary and long-hole drilling and coring, underground channel sampling, <br />and laboratory analysis of samples taken ahead of the mining advance. <br />All of the historical exploration has been limited to permitted mining areas. As OMI <br />approaches the limits of know minable reserves, however, it is anticipated that exploration may <br />extend beyond the permitted area. Future exploration will focus on potential extension of <br />existing operations in the B, C, D and possibly E coal seams, and identification/quantification <br />of extensions on these seams or in sepazate reserve blocks. <br />Because of the depth of major coal seams in the mine permit area and extensive historical <br />mining which has occurred, no bulk sampling is anticipated. Furure exploration is expected to <br />involve surface trenching to delineate outcrop locations and conditions and drilling and coring <br />or channel sampling with recovery of substantially less than 250 tons of coal. OMI recognizes <br />that a sepazate written notice of intent to explore will be required for each exploration <br />program in order to comply with applicable regulations. However, similar practices will be <br />utilized to establish access, complete surface trenching, construct drill sites, complete drilling, <br />provide for environmental protection during exploration activities, and reclaim any resulting <br />disturbance. <br />Basic information relating to all anticipated future exploration activities is presented in this <br />section and will be referenced in future notices of intent in order to minimize repetitive <br />discussions and expedite exploration program review and approvals. Exhibit 2.04-E3, Geologic <br />Information, has also been established for insertion of all existing and future notices of intent <br />to explore and the resulting geologic information, to simplify location of and reference to this <br />information. <br />The parry seeking to conduct exploration attivities is identified as follows: <br />Oxbow Mining, Inc. <br />P.O. Box 535 <br />Somerset, Colorado 81434 <br />(970) 929-5122 <br />The company's representative who will supervise and be responsible for exploration activities <br />is: <br />Mr. Thomas C. Anderson, P.E. <br />Environmental Coordinator <br />Oxbow Mining, Inc. <br />3737 Highway 133 <br />Somerset, Colorado 81434 <br />(970) 929-5122 <br />