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-2- <br />III. The following section follows the organizational structure of the <br />Golden Eagle permit. Specific items which need to be addressed as part <br />of this mid-term review are listed by permit section. <br />1) Permit application form <br />a) This form must be updated to reflect the current ownership, <br />name and contact information. Any changes in page numbers <br />or maps which are a result of this review should also be <br />included. Similar changes in the Table of Contents, List <br />of Figures, etc., should also be made. Anew permit <br />application form has been enclosed for your convenience. <br />2) Section 2.02 - Exploration <br />a) This section should be updated to include exploration <br />programs which have been implemented. Exploration permit <br />numbers and the status of these permits should be included. <br />3) Section 2.03 - Financial and Legal Compliance <br />a) The identification of interests, and mine permit <br />information must be updated. <br />b) Right of Entry information should be amended as necessary <br />to reflect the permit and surface ownership transfer from <br />CFBI. Was the lease to parcels 12 and 69 in Section 19, <br />and parcel 93 in Section 29 ever purchased? <br />c) Life of mine projections should be updated if they have <br />changed. <br />d) The new insurance document from KN Energy should replace <br />the expired document in section 2.03.9. If the document is <br />to be confidential, it should at least be referenced in <br />this section. <br />e) The MLRD permit number in Table 5 should be updated. In <br />addition, the column headings in this table do not appear <br />to be in the proper position. <br />4) Section 2.05 - Operation and Reclamation Plans <br />a) The operations description for coal transportation should <br />be amended to include the current practice of truck hauling <br />to New Elk. Description of railroad transport to Pueblo <br />should be deleted. <br />b) Amore detailed description of the facilities construction <br />specifications is necessary for accurate bonding <br />estimates. These could be included in Exhibit l7 and <br />referenced in this section. <br />