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TEMPORARY CESSATION NOTICE CHIMNEY ROCK MINE Introduction On July 31, 1985 Kaiser Steel Corporation announced that it was idling operations at the Chimney Rock surface coal mine near Pagosa Springs, Colorado, effective mid-September. The Chimney Rock operation has exhausted its coal reserves as of September 25, 1985. Kaiser Steel submitted a request for an emergency coal lease with the U.S. Forest Service, but the request was denied because of allegations that mining in the proposed area would adversely affect archaeological values at nearby Chimney Rock Archaeological Area. Kaiser, which disputes that such impacts would occur, plans to meet with the Forest Service to discuss options for obtaining additional reserves. The suspension is indefinite, but will be at least one year. During this period, Kaiser will make every effort to secure additional economic reserves in sufficient quantity to justify reopening the mine. In the interim, a small group will remain at the mine to provide security and maintenance of the facilities and equipment. Kaiser will maintain the mining permit in an active status and will continue to comply with all obligations under the permit. Extent of Disturbance and Reclamation Chimney Rock Coal was issued permit number C-023-81 by the Colorado Mined Land Reclamation Division on January 7, 1983, which allowed for continuation of surface mining operations at the Chimney Rock Coal Mine near Pagosa Springs, Colorado. The permit covered the original permit area (100 acres) and the Barren Ridge area (40 acres). On January 10, 1984 the company received permit approval for an additional 47.5 acres which was referred to as the Revision 1 area. At the time of temporary cessation the extent of disturbance and reclamation can be best shown on the maps provided and in the table on the following page. During the life of the mine, the A, B and C seams have been extracted. The reclaimed acreage has been backfilled, graded and revegetated.