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PART I -INTRODUCTION <br />Puraose of this Document <br />This document presents the results of the Midterm Permit Review of Oakridge Energy, Inc.'s <br />Cazbon Junction Mine. The Colorado Division of Minerals and Geology ("DMG"} conducted <br />this review for the purpose of fulfilling the requirements of the Colorado Surface Coal Mining <br />Reclamation Act (the "Act"), and the Regulations of the Colorado Mined Land Reclamation <br />Board for Coal Mining (the "Regulations"). <br />Oreanization of this Document <br />This document is divided into the following three parts: <br />Part I -Introduction <br />Part II - Swnmary of Operations, Revisions to Permit, <br />Violations, Stipulations, Variances, and Bond <br />Part III -Requested Revisions of Permit Application <br />Midterm Review Requirements of the Regulations <br />Section 2.08.3 of the Regulations requires the Division to conduct a general review of each <br />mining and reclamation permit prior to the middle of the permit's term (2 '/Z yeazs). Based on <br />this Midterm Review, for good cause shown, the Division may require the petznittee to revise or <br />modify the permit in order to ensure compliance with the Act and the Regulations. <br />Table 1, below, lists the other Sections of the Regulations that require a Midterm Review of <br />specific aspects of each permit. <br />Table 1 -Specific midterm review topics <br />Section <br />Topic <br />2.06.2(10) Experimental practices <br />Applicability at the <br />Carbon Junction <br />Mine <br />Inapplicable, no <br />such practices. <br />2.06.3(4)(a) Mountaintop removal Inapplicable, no <br />variances such vaziances. <br />Carbon Junction Mine Page 2 January 26, 2006 <br />Midterm Review <br />