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.: <br />• - 2 - <br />C. Western Fuels-Utah, Inc. ("Western-Utah"), a <br />Wyoming corporation, is a wholly-owned subsidiary of <br />Western Fuels formed for the purpose of acquiring, de- <br />veloping and exploiting certain coal reserves located in <br />Rio Blanco County, Colorado. western-Utah has contracted <br />to sell all of the output from these coal reserves to <br />Deseret and to transport this output via an electrified <br />railroad transportation system to the Power Plant for use <br />by Deseret. All costs and obligations incurred by Western- <br />Utah under this Agreement are "Mining Costs" and "Fixed <br />Costs" within the meaning of those terms as used in the <br />Mine Operating and Construction Agreement dated March 16, <br />1981 between Western-Utah and Deseret, and Deseret has <br />acknowledged this fact. See Attachment 1 hereto. western- <br />Utah's coal development is to be known as the Deserado <br />Mine ("the Mine"). <br />D. Rio Blanco County ("the County") is a politi- <br />cal 'subdivision of the State of Colorado. The Rio Blanco <br />Board•of County Commissioners is charged under Colorado <br />law with certain responsibilities for the welfare of citi- <br />zens residing in the County. The Mine and a portion of <br />the associated electrified railroad transportation system <br />will be located in Rio Blanco County. Prior to commence- <br />ment of construction or operation of the Mine and associ- <br />ated railroad transportation systems, Western-Utah must <br />obtain a Special Use Permit for an underground coal mine <br />and associated facilities from Rio Blanco County pursuant <br />to the provisions of Rio Blanco County Ordinance 1974 <br />305.2, as amended, and Rio Blanco County Ordinance 1977 <br />1000. Western-Utah's application for such a Special Use <br />Permit was filed on February 26, 1981 and is currently <br />pending before the Rio Blanco County Planning Commission. <br />:'4° • <br />\M . . <br />