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-g- FINDINGS OF THE COLORADO MINED LAND RECLAMATION DIVISION FOR THE CHIMNEY ROCK COAL MINE PERMIT REVISION N0. 2 AREA (DEEP CREEK) Explanation of Findings Pursuant to Rule 2.01.6(2) of the Regulations of the Colorado Mined Land Reclamation Board for Coal Mining, and the approved state program, the Division must make a number of written findings prior to the issuance or substantial modification of a coal mining permit. These findings are based on information made available to the Division in the permit application or otherwise available to the Division that demonstrates that the applicant will be able to operate in compliance with the Colorado Surface Coal Mining Reclamation Act and the Regulations promulgated pursuant to the Act. This findings document is organized according to the major disciplines reviewed during the permitting process. The written findings which must be made by the Division are addressed under the appropriate discipline subtitle. Additionally, any specific approvals required to be made by the Division pursuant to Rule 2.07.6(2)(m), are discussed under the appropriate discipline subtitle. I. Legal, Financial, and Compliance Information - Rules 2 The Chimney Rock Mine contains both private and federal mineral and surface estates. The Permit Revision No. 2 area consists of private surface and coal, and federal mineral and surface holdings. Within the area to be mined the mineral estate to be mined has been severed from the surface estate. The documentation required by Rule 2.03.6(2) is provided by Chimney Rock Coal and found in Exhibit 1R2 of the approved permit application. The coal has been leased by the U.S. Bureau of Land Management, in the Permit Revision No. 2 area. This lease, Federal Coal Lease No. C-34886, is included in Exhibit 1R2 of the permit application. The application is in compliance with Rule 2.07,6(2)(f). Based on information submitted in Section 2.03 of the approved permit application and the permit revision application, and through contact with the coal mining regulatory agencies in states where Chimney Rock Coal's parent company operates mines, the Division finds that Chimney Rock Coal does not own or control any operations which are currently in violation of any law, rule, or regulation of the United States, or any state law, rule or regulation enacted pursuant to federal law, rule or regulation pertaining to air or water environmental protection, or of any provision of the federal Surface Mining