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Section III -Status of Stipulations The stipulation history for the Lorencito Canyon mine was reviewed as part of the mid- term review. Two stipulations were issued as a result of Permit Renewal No. 1 and remain active at this time. All other stipulations have been resolved or complied with. Stipulation No. 20 THE PERMIT RENEWAL NO. 1 (RN-01) IS APPROVED AS A RECLAMATION ONLY PERMIT. IN THE EVENT THAT THE LORENCITO CANYON OPERATION IS PLANNED TO REOPEN FOR COAL MINING AND REMOVAL, THE OPERATOR SHALL SUBMIT A PERMIT REVISION, RECEIVE APPROVAL FOR, AND SUBMIT ANY INCREASE IN RECLAMATION BOND, PRIOR TO ANY ADDITIONAL DISTURBANCE OF LANDS WITHIN THE PERMIT AREA. Stipulation No. 21 LORENCITO COAL COMPANY SHALL NOT IMPLEMENT ACTIVITIES APPROVED UNDER TECHNICAL REVISION NO. 8 UNTIL THE REQUIRED BOND IS SUBMITTED AND ACCEPTED BY THE DIVISION. THE REQUIRED LIABILITY FOR THE ENTIRE MINE AS A RESULT OF TECHNICAL REVISION NO. 8 IS $2,853,681.00. Section IV -Enforcement Actions Since Permit Renewal No. 1 one Notice of Violation (NOV) has been issued at this site, NOV CV-2003-009 was issued on September 29, 2003 for failure to provide a certificate showing evidence of required liability insurance in-force for the Lorencito Canyon Mine. The violation was terminated on October 10, 2003. The penalty was set at $750 and the penalty was paid by December 2004. No enforcement actions are currently pending at this site and the mine is in compliance with the Rules and Regulations. Section V -Summary and Discussion Previously approved permitting actions to the reclamation plan were approved through revisions to the backfilling and grading plan as well as the topsoil redistribution plan at the site. Topsoiling and seeding operations in addition to monitoring and maintenance are being completed during the 2005 field season. Section VI -Bonding The Division reviewed the reclamation cost estimate for the entire site as a result of Bond Release No. 1 (SL-01) approved on February 3, 2005. The Division currently holds bond # L-0201-C-96-084 in the amount of $ 1,000,240.00 issued by Lyndon Property Insurance Company. Due to the recent review, update, and approval of the bond release application, the Division is confident that adequate bond money is in place to complete the approved reclamation plan using current costs. This concludes the mid-term review process.