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Permit Nunber CO-0026, ( ) Page 1 of 7 UNITED STATES DEPARTMENT OF THE INTERIOR OFFICE OF SURFACE MINING This permit is issued for the United States of America by the Office of Sur- face Mining to the Salt Creek Mining Company, the lessee of Federal Coal Lease: C-0125439. This permit is not valid until a performance bond is filed with OSM in the amount of $53,750.00, payable to the Office of Surface Mining, and until the Office of Surface Mining has received a copy of this permit signed and dated by the permittee. Sec. 1 STATUTES AND REGULATIONS - This permit is issued pursuant and sub- ject to the terms and provisions of the Surface Mining Control and Reclamation Act of 1977, 30 U.S.C. 1201 et sec., hereafter referred to as the Act, and the terms and conditions of the Federal coal lease issued pursuant to the Mineral Leasing Act of February 15, 1920, as amended, 30 U.S.C. 181-287, the Federal Coal Leasing Amendments Act of 1976, as amended, 90 Stat. 1083-1092, and in the case of any acquired lands, the Mineral Leasing Act for Acquired Lands of September 7, 1947, as amended, 30 U.S.C. 351-3:9 et seg. This permit is also subject to all applicable regulations of the Secretary of the Interior (including, but not limited to, 30 CFR Part 211 and Chapter VII and 43 CFR Group 3400), and to all regula- tions of the Secretary of Energy promulgated pursuant to Section 302 of the Department of Energy Organization Act of 1977, 42 U.S.C. 7152, which are now in force or (except as expressly limited herein) hereafter in farce, and all such regulations are made a part this permit. Sec. 2 This permit authorizes the permittee to conduct underground coal mining and reclamation operations on the Federal lands within the permit area situated in the State of Colorado, County of Garfield, containing approximately 248 acres, subject to the conditions of the lease, the approved mining and reclamation plan, the terms of this permit, and applicable laws and regulations. The lands included in this permit are described as follows: Townshi p 7 South, Range 102 West, 6th P.M. SECTION 15: Portions of SW1/4 SW1/4 (Portions of Lots 1 & 2) SECTION 16: Portions of SW1/4 SE1/4 Portions of SE1/4 SE1/4 (Portions of Lots 23 & 24) SECTION 21: Portions of NE1/4 NE1/4 (Lot 2 and portio ns of Lot 1) Portions of NW1/4 NE1/4 Portions of SW1/4 NE1/4 Portions of SE1/4 NE1/4 Portions of NE1/4 NW1/4 (Portions of Lot 3) Portions of SW1/4 NW1/4 (Portions of Lot 7) Portions of SE1/4 NW1/4 (Portions of Lots 9 & 10) Portions of NE1/4 SW1/4 (Portions of Lots 11 & 12) Portions of NW1/4 SW1/4 (Portions of Lot 13) Portions of NE1/4 SE1/4 Portions of NW1/4 SE1/4 SECTION 22: Portions of NW1/4 NW1/4 (Portions of Lot 5)