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Rule 2: Permits The name of the mine is Lorencito Canyon Mine. LCC is in the process of obtaining an MSHA identification number. There are no outstanding interests in lands, options, or pending bids on interests held or made by LCC for lands which are contiguous to the area covered by the permit. 2.03.5 COMPLIANCE INFORMATION Neither LCC nor any of its affiliates or persons controlled by or under common control with it, has had a mining permit for surface coal mining operations suspended or revoked within the last five (5) years. Nor have any of such entities forfeited a mining bond or similar security deposited in lieu of a bond in connection with any surface coal mining operations. Over the past thiee years, LCC has received the following notices of violation from the Colorado Division of Minerals and Geology (CDMG): Infraction No. Date Permit No. 002001014 ]0-26-01 C-96-084 002001015 11-07-01 C-96-084 CV2001016 11-16-01 C-96-084 CV2002001 2-13-02 C-96-084 • CV2002002 2-13-02 C-96-084 CV2002009 6-17-02 C-96-084 All of the above infractions related to blasting operations at the Lorencito Canyon Mine (MSHA ID No. 0504712). These violations have been abated as required by CDMG. A violation was written December 4, 2001, by the CDPHE Water Quality Control Division against LCC Permit CDPS No. CO-0045080. The violation was related to a requirement for an updated SPCC plan and flow measurement devices at sediment pond discharge points. This violation was abated January 14, 2002. As a result of a May 22, 2002, Compliance Advisory by CDPHE Air Quality Division against LCC permit O1 LA0642, a Compliance Order on Consent was issued on August 6, 2002. Violations related to dust from blasting and coal loading operations. The order restricted blasting and permanently eliminated loading railcars with afront-end loader. The CDMG searched the Applicant Violator System (AVS) for violations by Associated companies and were given a "DENY" recommendation because second quarter 2002 AMC fees have not been paid. LCC has made arrangements with the AMC program to catch up on payments. • Lorencim PinPPNfC(475)Dec2002 wpd 2.03-6 (I'eVLSCd 12~11~02)