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Findin s <br />DMG finds that: <br />A properly executed Request for Transfer of Coal Permit and Succession of Operators <br />application form was submitted to DMG, and this form requests that Permit No. C-1981- <br />044 be transferred from RAG Empire Corporation to BTU Empire Corporation <br />(2.08.6(2)(6)); <br />A properly executed Surface Mining and Reclamation Bond, in the form of Corporate <br />Surety No. 104324891, held by Travelers Casualty and Surety Company, in the amount of <br />$3,552,679.00, has been sumitted by BTU Empire Corporation for Pennit No. C-1981-044, <br />and the bond has been accepted by DMG (Rule 2.08.6(2)(a) and Rule 2.08.6(4)(6)); <br />3. The identification of interests information required by Rule 2.03.5 has been properly <br />submitted, reviewed, and deemed adequate (Rule 2.08.6(2)(b)(iii)); <br />4. The compliance information required by Rule 2.03.5 has been properly submitted, reviewed <br />and deemed adequate (2.08.6(2)(b)(iii)); <br />5. The right-of--entry information required by Rule 2.03.6 was initially incomplete due the <br />operator's failure to renew a lease with surface and mineral owners on one parcel of land <br />within the permit boundary. As a result of the inability of the operator and property owners <br />to come to a ready resolution of the lease conditions, litigation between the parties <br />occurred. In January 2006, the parties came to a resolution and the lawsuit was dropped. <br />BTU Empire Corporation provided documentation of the resolution in January 2006. All <br />right-of--entry and operation information required by Rule 2.03.6 has been submitted, <br />reviewed and deemed adequate (Rule 2.08.6(2)(b)(iii)); <br />6. The waiver information required by Rule 2.03.7(3) has been properly submitted, reviewed , <br />and deemed adequate (2.08.6(2)(b)(iii)); <br />7. The personal injury and property damage insurance information required by Rule 2.03.9 has <br />been properly submitted, reviewed, and deemed adequate (2.08.6(2)(b)(iii)); <br />8. The identification of other licenses and permits required by Rule 2.03.10 has been properly <br />submitted, permits transferred, reviewed and deemed adequate (2.08.6(2)(b)(iii)); <br />9. The transfer application was properly advertised as required by Rule 2.08.6(3)(a). The <br />public notice was published in the Craig Daily Press on May 10, 2006. No written <br />comments concerning the permit transfer were received (2.08.6(3)(6); <br />10. Based on all available information, BTU Empire Corporation and all related owners and <br />controllers of BTU Empire corporation are currently in compliance with Rules 2.07.6(1)(6) <br />Eagle Mine Complex 5/26/2006 <br />SO-2 <br />ii <br />