2.03.6 -RIGHT OF ENTRY AND OPERATION INFORMATION
<br />The King I Mine is located in portions of Sections 31 and 32; Township 35 N, Range
<br />11 W, N.M.P.M., Section 36; Township 35 N, Range 12 W, N.M.P.M., and Sections 5
<br />and 6; Township 34 N, Range 11 W, N.M.P.M., all in La Plata County, Colorado.
<br />The surface of the area to be mined within the Permit Area is owned by Huntington
<br />Ranches, LLC, Crawford Ranches, and the Thomas Lee Compton Revocable Trust.
<br />All mining activities of the King Coal Mine lie to the south side of Hay Gulch,
<br />approximately 4.5 miles southwest of Hesperus, Colorado, as identified on U.S.G.S.
<br />7.5 Minute Quadrangles for Hesperus and Kline.
<br />None of the leases or legal right to enter is the subject of pending litigation.
<br />LEGAL DESCRIPTION OF ACCESS ROAD
<br />Tract in Sections 29 and 30, T 35 N., R 11 W., N.M.P.M. Beginning at a point on the.
<br />South line in said Section 29, whence SW corner of said Section 29 bears West, 9.16
<br />feet; Thence N 22 37' W, 551.30 feet, more or less to south right-of--way in Hay
<br />Gulch County Road; Thence N 84 23' E, 82.09 feet, to West right-of--way in Wright
<br />Coal Mine Road; Thence S 22 37' E, along said line, 560.0 feet to South line of said
<br />Section 29; Thence West along said South line 85.04 feet to point of beginning,
<br />approximately .92 acres. (Deed of Trust; Microfilm #403958)
<br />This access road connects County Road 120 with permit area. Also included on
<br />Microfilm #403958 are two tracts of land which include much of the surface facility
<br />area of the King I Mine.
<br />Map King I-001 shows the location of the King I Mine site. The disturbed area is
<br />shown on Map King I-007. Maps King I-002 and King I-003 show the surface
<br />ownership and mineral ownership respectively of National King Coal; LLC and
<br />surrounding lands.
<br />SOURCE OF LEGAL RIGHT TO ENTER
<br />National King Coal, LLC holds the following deeds, perpetual easements and coal
<br />leases.
<br />A) Federal Coal Lease #COC-60941 (194.79 acres; includes Upper Menefee seam
<br />only)
<br />Township 34 North, Range 11 West, N.M.P.M.;
<br />Section 6, Lots 1 - 5 (inclusive) : NE/ 4 SW / 4, NW / 4 SE/ 4
<br />Surface owner: Huntington Ranches, LLC
<br />Date of execution: 10/ 1/98
<br />Federal Coal Lease #COC-60941 (Modified 12/ 1/99 to add 160 acres; includes
<br />Upper Menefee seam only)
<br />Township 34 North, Range 11 West, N.M.P.M.;
<br />..-,-,-,-.-.~ Section 6;-E/ 2 SW / 4 SE/ 4,®SW / 4 SW / 4 SE/ 4 ,~,-,~,,~,,,,,~,-,-,~,~,®,®,~,®,~,~,~,~,®,~;~,®,~„~,~„-,~.,®,.~,.
<br />National King Coal, LLC King I Mine
<br />Section 2.03.6
<br />Page 1 February, 2007
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