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• 2.03.6 Right of Entry and Operation Information <br />(1) Operator's legal right to enter and conduct coal mining operations in the permit area is <br />based upon four Orders from the United States Bankruptcy Court for the Eastern District of <br />Kentucky -Lexington Division, Case Nos 00-51374 and 00-51376 through 00-5139. In <br />summary, these orders transfer ownership of Powderhom Properties Company and <br />Powderhorn Coal Company's assets (both companies being subsidiary companies of <br />Quaker Coal Company) to American Electric Power Company, Inc., ("AEP") under the AEP <br />plan. Snowcap Coal Company is a newly formed subsidiary company of AEP and AEP <br />has decided to transfer assets it now owns but may still be titled in the name of <br />Powderhorn Properties Company or Powderhorn Coal Company over to Snowcap Coal <br />Company. <br />After the transfer the Operator's legal right to enter and conduct coal mining operations will <br />be based on four types of documents. These documents are Warranty Deeds which prove <br />ownership of surface and fee coal, Federal Coal Leases that give Operator the right to <br />• mine the coal, private coal leases which give Operator the right to mine the coal, and in <br />some cases, utilize the surface for coal mining purposes, and right of way agreements with <br />surface land owners. Reference Tables 3-3, 3-4, 3-5 and 3-6. <br />(2) Surface mining on split estate -not applicable. <br />2.03.7 Relationship to Areas Designated Unsuitable for Mining <br />(1) The proposed permit area is not within any areas designated as unsuitable for surface coal <br />mining operations under Rule 7 and 30 CFR 764 and 765, or any areas under study for <br />such designation under Rule 7 or 30 CFR 764 and 765. <br />(2) Because surface coal mining operations were being conducted within the permit area on <br />August 3, 1977, and because GEX Colorado Inc. had made substantial legal and financial <br />commitments prior to January 14, 1977, Rule 7 does not apply to the permit area. (Rule <br />7.02(1) and 7.02(2)). The Colorado Division of Mines' records document the mining <br />activities in the permit area prior to August 3, 1977. <br />• 3-4 1 /02 <br />