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• Rule 1.03 <br />ec ,the principal shareholder of both Coalgrace, lnc. and Coalgrace II, Inc.--Grace Energy <br />Corp.- does not have an "ownership or control" interest in any current or pending surface coal <br />mining permits or operations in the United States, other than its "ownership or control" interest <br />in HGCC. However, Grace Energy Corp. is the principal shareholder of Gracoal, Inc. (100%) and <br />Gracoal II, Inc. (100%). Gracoal Inc. and Gracoal II, Inc. are the limited partners of Colowyo Coal <br />Company L.P., a Delaware limited partnership and the holder of Colorado Mining Permit C-81- <br />019. Gracoal, Inc and Gracoal II, inc., as limited partners, have no involvement in the day-to-day <br />operation, management, or control of Colowyo Coal Company L.P., and their rights are limited <br />solely to defined economic interests as specified under the terms of the Colowyo Coal Company <br />L.P. Amended and Restated Limited Partnership Agreement. The sole general partner of Colowyo <br />Coal Company L.P. is Kennecott Colorado Coal Company. Kennecott Colorado Coal Company, <br />as the sole general partner, controls the day-to-day operation and management of Colowyo Coal <br />Company L.P. HGCC does not believe that the limited partnership interest indirectly held by <br />Grace Energy Carp. via Gracoal, Inc. and Gracoal II, Inc. in Colowyo Coal Company L.P. satisfies <br />the "owns and controls" definition and requirements of DMG's regulations. However, the <br />following information on Colowyo Coal Company L.P. is provided solely if it is determined that <br />the indirect interest of Grace Energy Corp. in Colowyo Coal Company L.P. somehow satisfies <br />the "owns and controls" definition and requirements. <br />Colowyo Coal Company L.P. <br />Agent: Richard G. Atkinson <br />5731 State Highway 13 <br />Meeker, CO 81641 <br />Colorado Mining Permit C-81-019 <br />MSHA I.D. No. OS-02962 (issued October 1976) <br />Additional information concerning Colowyo Coal Company L.P., including a listing of the <br />officers and directors of Gracoal, Inc. and Gracoal II, Inc., may be found in the "identification of <br />Interest" section-Section 2.03.4- of Colowyo Coal Company L.P.'s Colorado Mining Permit C-81- <br />019 application. <br />Third, the principal shareholder of Grace Energy Corp. - W.R. Grace & Co.-Conn. -and its <br />principal shareholder - W. R. Grace & Co. - do not have an "ownership and control" interest in <br />any current or pending surface coal mining permits or operations in the United States, other than <br />their "ownership or control" interest in HGCC and any indirett interest in Colowyo Coal <br />Company L.P., as discussed above. <br />(6)(a) The parent corporations of HGCC own a variety of interests in lands contiguous to the HG <br />Permit Area. These lands are operated as agricultural properties and contain no areas where coal <br />mining has occurred since 1977. Most of these contiguous lands were recently sold to parties <br />unaffiliated with HGCC or its parent corporations. <br />Ownerc of Record (dyne Areg)-Mineral: <br />Routt County <br />• c/o Board of County Commissioners <br />Steamboat Springs, CO 80477 <br />r~e~3 9~v~96 <br />I r~a6~q,6 SvBr~ n'r.9L <br />.,w.F 2.03-8 <br />. s.;.~ <br />