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• 2.05.2 <br />The reserve was initially accessed through the D-2 Seam. The initial five <br />year permit term will be for mining the D-2 Seam in the fee and Federal <br />property. During March 1999, the Operator obtained Federal Right-of-Way <br />COC-62688. This right-of-way allowed the Operatorto develop Federal coal <br />for ventilation and access entries. These ventilation and access entries were <br />developed in two locations; 1) northwest of the Operators fee coal and; 2) <br />along the east boundary of the Operators tee coal. <br />During the first quarter of 2000 the Operator obtained Amendment No. 1 to <br />Federal Right-of-Way COC-62688. This right-of-way allowed the Operator <br />to develop Federal coal. The Federal coal involved included an extension <br />of the North Mains and mining most of the D3 headgate. This mining was <br />necessary so longwall panel D3 could be blocked out and ready to mine. <br />Federal Coal lease COC-61209 was effective September 1, 2000. This coal <br />lease allows the Operator to extend its development to the north into Federal <br />Coal. During June 2000 the Operator amended the permit (TR-16) to allow <br />• advance of the D4 headgate and the North Mains so longwall panel D4 can <br />be blocked out and ready to mine. The amendment also provides for <br />extending the bleeder system to the north. During September 2000, the <br />Operator amended the permit (TR-18) to allow longwall mining in Federal <br />and private coal at the west end of the D2 Panel and at the western edge of <br />Bowie Resources Limited's fee coal property in the D3 Panel. <br />During October 2000, the Operator submitted an application for a permit <br />revision to mine out the D-2 seam in the Federal Coal lease. <br />Mining in the second five year permit term, from 2002 to 2007, will involve <br />mining in the D-Seam and developing ramps from the D-2 Seam to the B-2 <br />Seam and mining longwall panels the B-2 Seam reserve. The permit will be <br />revised later to include developing access to the west under Terror Creek to <br />mine the coal in the Bowie No, 1 Mine east pod. <br />• <br />Permit Renewal 2.05 - 2 - <br />4/02 <br />s~9~oZ <br />