GENERAL48427

• Permit No: C1981020
• IBM Index Class Name: General Documents
• Doc Date: 11/17/2004
• Doc Name: Findings of Compliance & Decision for Transfer of Coal Permit
• From: SO3 From Lodestar Energy, Inc. To Central Appalachia Mining, LLC
• Permit Index Doc Type: Findings
• Media Type: D
• Archive: No

(~
This document contains the findings and decision pertaining to a Request for Transfer of Coal
Pemut and Succession of Operators (succession). The Division of Minerals and Geology
(DMG) received the succession application on June 26, 2003. The succession application
proposes a transfer of DMG Permit No. C-1981-020 from the curzent permittee and operator,
which is Lodestaz Energy, Inc., to a new penriittee and operator, Central Appalachia Mining,
LLC (CAM}. The application was submitted and reviewed pursuant to the procedures of Rule
2.08.6 of the Regulations of the Colorado Mined Land Reclamation Boazd for Coal Mining. The
DMG hereby approves the succession request.
Process
On June 26, 2003, the above-referenced succession application was received at the offices of the
DMG. The review process included a number of adequacy letters issued by DMG and responses
with amended or additional information provided by the applicant. The unusually lengthy
review process was due to the tune required for the applicant to comply with Minerals
Management Service (MMS) requirements pertaining to outstanding lease obligation payments.
The Bureau of Land Management (BLM) was unable to approve the federal coal lease
assignments to CAM, until MMS made a determination of compliance (which occurred on
November 2, 2004). DMG was unable to make an affirmative finding of CAM's legal right of
entry until BLM approved the assignment of the federal coal leases to CAM (assignment signed
11/4/04, effective 12/1/04).
Findines
The DMG hereby finds that a properly executed Request for Transfer of Coal Permit and
Succession of Operators application form has been submitted to the DMG, and this form
requests that the DMG Permit No. C-1981-020 be transferred from Lodestar Energy, Inc.
to Central Appalachia Mining, LLC (2.08.6(2)(b)).
2. The DMG hereby finds that a properly executed Surface Coal Mining and Reclamation
Operations Reclamation Bond of $230,000.00 (two hundred thirty thousand dollars), in
the form of Corporate Surety No. 104109439 has been submitted by Central Appalachia
Mining, LLC, for Permit No. C-1981-020, and the bond has been accepted by DMG
(2.08.6(2)(a) and 2.08.4(4)(b)).
The DMG hereby finds that the Identification of Interests information required by Rule
2.03.4 has been properly submitted, reviewed and deemed adequate (2.08.6(2)(b)(iii)).
4. The DMG hereby finds that the Compliance Information requied by Rule 2.03.5 has
been properly submitted, reviewed and deemed adequate (2.08.6(2)(b)(iii)).
5. The DMG hereby fmds that the Right of Entry and Operation Information required
by Rule 2.03.6 has been properly submitted, reviewed, and deemed adequate
(2.08.6(2)(b)(iii)).