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FINDINGS OF THE COLORADO MINED LAND RECLAMATION DIVISION FOR CARBON JUNCTION MINE Explanation of Findings Pursuant to rule 2.07.6(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 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. 1. Financial. and Compliance Information - Rules 2.03 The private mineral estate to be mined has not been severed from the private surface estate at the Carbon Junction Mine, as shown by Appendix 3-2 of the permit application. The application is in compliance with Rule 2.07.6(2)(f). Based on information submitted in Division has made a determination control any operations which are regulation of the United States, pursuant to Federal law, rule or environmental protection, or of a and Reclmation Act or the Colorad (2.07.6(2)(8)). Section 2.03 of the permit application, the that Pueblo Coal, Inc. does not own or currently in violation of any law, rule, or or any State law, rule or regulations enacted regulation pertaining to air or water ny provision of the Surface Mining Control o Surface Coal Mining Reclamation Act Pueblo Coal, Inc. does not control and has not controlled mining operations with a demonstrated pattern of willful violations of the Act of such nature, duration, and with such resulting irreparable damage to the environment to indicate an intent not to comply with the provisions of the Act (Rule 2.07.6(2)(h)).