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ULE 2 PERMITS <br />REPLACES THE AETNA CASUALTY AND SURETY UUMPANY BOND NO. 46S203riUBCA <br />Of' CO <br />COLORADO DIVISION OF MINERALS AND GEOLOGY <br />1313 Sherman Street, Room 215, Denver, Colorado 80203, (303) 866-3567 <br />SURFACE COAL MINING AND RECLAMATION OPERATIONSRECEIVED <br />RECLAMATION BOND - CORPORATE SURETY <br />FEDERAL MINES FEB 1,12001 <br />Bond No. 11127471685 <br />Division of Minerals 8 Geoloc!, <br />Permit No. C-81-019 <br />KNOW ALL MEN BY THESE PRESENTS, That <br />COLOWYO COAL COMPANY L.P. <br />of the County of MOFFAT in the State of COLORADO as Principal <br />and FIREMAN'S FUND INSURANCE COMPANY <br />of the County of MARIN in the State of CALIFORNIA a <br />corporation organized and existing under the laws of the State of CALIFORNIA and <br />duly authorized to transact a bonding and surety business in the State of Colorado, as surety, are held <br />hereby and firmly bound unto the State of Colorado (the "State") and the United States/Office of <br />Surface Mining Reclamation and Enforcement ("OSMRE") in the sum of , NO1100** <br />EIGHT MILLION SEVEN HUNDRED FORTY SEVEN THOUSAND FOUR HUNDRED FIVE AND DOLLARS <br />($ 8, 747,405.00 ) for the payment of which sum, well and truly to be made, we <br />hereby bind ourselves and our personal representatives, successors and assigns, jointly and severally, <br />firmly by these presents. Upon termination of the Cooperative Agreement entered into between the <br />State of Colorado and the Department of the Interior, all bonds shall revert to being payable only to <br />the United States (OSMRE) to the extent that Federal lands are involved. <br />WHEREAS, the Principal has applied for a permit ("the Permit") to conduct mining and <br />reclamation operations on certain lands in MOFFAT County, Colorado which, <br />for convenience of reference, are described as follows; <br />FOR LEGAL DESCRIPTION OF MINE PERMIT BOUNDARY, SEE EXHIBIT A ATTACHED HERETO. <br />WHEREAS, as part of the application for such permit, Principal has agreed with the State and <br />the United States/OSMRE to complete a specified plan ("the Plan") for reclamation, as required by <br />law, of the lands disturbed by reason of such mining operations. The Plan may be amended from time <br />to time with the approval of the State, acting through the Department of Natural Resources and, as <br />appropriate, the Division of Minerals and Geology ("the Division") of the Mined Land Reclamation <br />Board ("the Board") and the United States of America, acting through the Department of the Interior, <br />Office of Surface Mining Reclamation and Enforcement ("the OSMRE"). <br />Rule 2 Permits 2-13 Revision Date: 6/23/08 <br />Revision No.: MR-91