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King Coal. National King Coal, LLC has water rights at this well until September 1, <br />2008, with renewal options there-after (See Appendix 2(5)). <br />The water impoundments (sediment ponds) are not intended as permanent <br />constructions on the mine site, but will remain intact until the site has been <br />successfully reclaimed. <br />The diversion channels and buried culvert pipe will be maintained during the <br />reclamation program until Phase II Bond release has been achieved, <br />Upon successful Phase II Bond release, permanent drainages will be installed <br />and the ponds reclaimed. <br />Unneeded power and telephone line poles and equipment will be removed with <br />the assistance of the local public utilities at the time the King I Mine is abandoned. <br />The well pumps will require power. The surface owner has requested by letter, noted <br />above, that power remains. <br />The Upper Facilities Area (Coal Stockpile to Bath house) will be ripped and the <br />coaly waste will be pushed to the highwall and buried. <br />SEALING MINE OPENINGS AND DRILL HOLES <br />In accordance with the. requirements of our mine plan, 2.11.41 (c) 30 CFR, the. <br />portals (mine openings or entrances into the King I Mine) will be back-filled and <br />sealed against inflows of surface water and access by animals or people. Coal <br />stockpile residue on the permit area will be scraped from the surface as described <br />earlier and used for backfill inside the portals. This will limit acid-forming or toxic <br />materials in the final plant growth medium dispersion and re-vegetation. These four <br />portals are each approximately 10 feet wide by 8 feet high. To fill them to a depth of <br />25 feet will require about 296 cubic yards of material plus a small amount to <br />account for sloughing at the inby end. Total portal backfill will require <br />approximately 400 cubic yards of material. After back-filling to a depth of 25 feet <br />from the portal, the mouth of the portals will be caved to completely seal them. The <br />highwall area will then be back-filled, graded to a 2:1 slope. <br />Coal exploration drill hole N-16 and a vent hole in the mine plan area have <br />already been capped with concrete plugs and meet reclamation requirements. A dry <br />well hole next to the water tank has been filled. The active well on the permit area <br />(See Map King I-007) will remain open and in active use for future use by owners of <br />the property. This well i$ enclosed in a housing and collared. See Map King I-005 <br />for location(s) of any vent/ air shafts or holes. <br />~~w,®,~,®,.~,®,~,.~,~.~,~-,~,.~,®,®,®,®,®,®,®,®,®,®,®,®,®,®,®,~,~,~.,.~,®,®,®,®,®,®,®,®,®,®,®,a,®,®,®,~,.~,®,®,®,®,®,~,®~.~,.~,®,®,®,®,®~®,®,®,®,®,®,®,®,®,®,~,®,®~®,®,®,~,®,~,~ <br />National King Coal, LLC King I Mine <br />Section 2.05.4 <br />Page 3 February, 2007 <br />