2008-10-22_PERMIT FILE - C1981013A

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• NECC owns and operates the New Elk Mine under Colorado State mining permit No. C- 81-012. NECC has no other interests in mining operations. There are no outstanding interests in lands, options, or pending bids on interest held or made by NECC for lands which are contiguous to the area covered by the permit. Owners of record of surface (S) and subsurface (C) or (S&C) contiguous to the permit boundary are shown on Maps 1 and 2. 2.03.5 COMPLIANCE INFORMATION Neither, NECC or any of its affiliates or persons controlled by or under common control with it, has had a mining permit for surface coal mining operations suspended or revoked within the last five years. Nor have any such entities forfeited a mining bond or similar security deposited in lieu of a bond in connection with any surface mining operations. Cline Mining has not received any notices of violation within the last five years. New Elk Coal Company LLC was issued NOV CV-2008-005 on August 26, 2008 for failure to control surface runoff on the out slope of the refuse disposal fill. The violation • was terminated September 23, 2008. Civil penalty is pending review. 2.03.6 RIGHT OF ENTRY AND OPERATION INFORMATION NECC's right of entry to conduct coal mining operations is not subject to any pending litigation. NECC's right-of--entry is based on an exclusive use agreement with the Colorado Division of Wildlife granting access to the permit area surface disturbance for completion of reclamation. NECC has acquired North Central Energy Company (NCE) and the right to the NCE lease to Basin Resources for coal properties within the permit area and the exclusive use lease with the Colorado Division of Wildlife. The Special Warrantee Deed evidencing North Central Energy Company's mineral ownership is recorded in Book 830< Page 619 of the Las Animas County Recorder's office. The deed is available for public inspection at the County Recorder's office located in the Las Animas County Courthouse, Trinidad, Colorado. All owners of record of all surface and subsurface areas which are contiguous to the Golden Eagle permit application, or will be affected by the surface operations and facilities incident to the Golden Eagle underground mining activities are shown on Map 1, Surface Ownership and Map 2 Coal Ownership and further identified on Attachments 1 A and 2A enclosed with Maps 1 and 2. • MR-83 2.03-5 (Revised 10/06/08)