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WESTERN MINING DISTRICT <br />WMD (Panels 13-Left through 17-Left (preliminary (Phase )) and Phase II development, PR06-07, TR07-63, <br />TR08-64) <br />During 2007-2008, and the subsequent permit term (2008-2012), mine development (Phase I and II) will progress in the <br />WMD, with fmal Phase III development and actual longwall mining expected to proceed following acquisition of the <br />pending federal coal lease and approval of a permit revision application addressing these activities. In preparation for <br />future mining in the WMD, TCC will proceed with initial development of main and submain entries for Panels 13- <br />Left through 17-Left to the limits of the unleased federal coal. Alignment of development entries may be adjusted, <br />as necessary, to address geologic conditions. <br />Development of Gateroads 13 through 17-Left and the associated bleeders will involve mining coal from federal coal <br />lease COC-20900 (as modified June 22, 2007), State lease CO-3229, and fee coal leased by TCC from Western Slope <br />Minerals Company, LLC. TCC will proceed with further permitting, development (Phase III), and mining of the WMD <br />following issuance of the pending coal lease for the remaining un-leased federal coal in Sections 22 and 27, TSN, <br />R87W. <br />. J <br /> <br />TR08-64 2.05-7.2 06/17/08 <br />