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Mr. Richard A. Mills - 2 - February 11, 1985 The approved performance bond for this area under Trapper Mining, Inc.'s permit is for X1,322.11 per acre, which is the cost associated with revegetation. For the 201 acres that could potentially be affected by longwall mining, this cost has been rounded to 5266,000.00. Added to this is ;11,000.00, which is the estimated cost of regrading the area in the event of subsidence-induced damage that would necessitate regrading. Therefore, the total bond which is required and has been accepted by Empire Energy Corporation for the Utah Tract is X277,000.00. This additional bond amount will be added to Empire's existing performance bond. Surface runoff from the reclaimed area within the Utah Tract is controlled by the Trapper Mine sediment control system. Through a Service Agreement between Trapper Mining, Inc. and Empire Energy Corporation, the Trapper Mine will provide sediment control for surface runoff from this area. Under the terms of this Service Agreement, either party may terminate the agreement on December 1 of any year upon 180 days prior written notice to the other of such termination. In order to ensure that an acceptable sediment control system for this area be maintained in full force and in compliance with Rule 4.05 until the performance bond is released, the Division hereby deems the following stipulation necessary. This stipulation is numbered in consecutive order to the previous 29 stipulations to the permit for the Eagle No. 5 and 9 Mines. STIPULATION No. 30 THE DIVISION SHALL BE GIVEN WRITTEN NOTICE AS SOON AS POSSIBLE BY EMPIRE ENERGY CORPORATION OF THE DECISION TO TERMINATE TRAPPER MINING, INC.'S OBLIGATION TO PROVIDE SEDIMENT CONTROL FOR THE RECLAIMED AREAS OF THE UTAH TRACT. EMPIRE ENERGY CORPORATION WILL THEN BE RESPONSIBLE FOR SUBMITTING TO THE DIVISION AN ALTERNATE SEDIMENT CONTROL PLAN IN A TIMELY FASHION SO THAT IT CAN BE APPROVED AND IMPLEMENTED PRIOR TO THE TERMINATION OF TRAPPER MINING, INC'S OBLIGATION. Under Rule 2.08.6(4), the Division is required to make specific written findings concerning the transfer, sale, or assignment of rights under a permit. The findings below are conditioned upon the acceptance of the above stipulation: (a) Empire Energy Corporation will conduct the operations covered by the permit in accordance with the Colorado Surface Coal Mining Reclamation Act and Regulations promulgated thereunder; (b) Empire Energy Corporation has submitted a performance bond at least equivalent to the bond of the original permittee; and (c) Empire Energy Corporation will continue to conduct the operations involved in full compliance with the terms and conditions of the original permit.