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Rule 2: Permits • 2.03.6 RIGHT OF ENTRY AND OPERATION INFORMATION LCC's right to enter and mine coal is not subject to any pending litigation: LCC's Lessors own the surface and coal within the permit area. Map 2.03.4-1 shows the surface ownership in and adjacent to the permit area. Coal ownership is leased to LCC by the landowner (Exhibit 2). This Exhibit provides the lease agreement of the landowner and A. P. Maxwell. Assignments of this lease are listed below. 1. Lessor's consent of assignment of interests as recorded at the office of the Las Animas Clerk on October 1, 1996, Reception Number 620720, Book 935, page 120. 2. Assignment of 50 percent interest from A. P. Maxwell to Taiheiyo (U.S.A.), Inc. as recorded at the office of the Las Animas Clerk on October 1, 1996, Reception Number 620723, Book 935, page 128. Assignment of 50 percent interest from A. P. Maxwell to Lorencito Coal Company, LLC, as recorded at the office of the Las Animas Clerk on October 1, 1996, Reception Number 620722, Book 935, page 123. 4. Assignment of 50 percent interest from Taiheiyo (U.S.A.), Inc. to Lorencito Coal Company, LLC, as recorded at the office of the Las Animas Clerk on October 1, • 1996, Reception Number 620722, Book 935, page 126. 2.03.7 RELATIONSHIP TO AREAS DESIGNATED UNSUITABLE FOR MINING The proposed permit area is not located within an area designated unsuitable for surface coal mining operations or under study for such a designation. LCC does not intend to conduct surface mining activities or to conduct or locate surface operations or facilities within 300 feet of an occupied dwelling, public building, school, church, community building, institutional building, public park, or on lands within 100 feet of a cemetery. 2.03.8 PERMIT TERM INFORMATION Life of operation is 15 to 18 years, depending on coal sales, as described in the operations plan in Section 2.05. LCC requests a second five year permit term to begin in late 2002. LorcncitoPmbPbl'f(J75)Dce2002.wpJ 2.03-6a (1'eVlsed 12~11~02)