2008-10-10_PERMIT FILE - C1980007 (3)

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2.02 General Requirements for Coal Exploration During the 1992, 1993, and 1994 drilling seasons, exploration drilling occurred within and outside the current permit area, on adjacent tracts of unleased, federally-owned coal (Federal exploration license Nos. COC-53793 and COC-54360). Notices of Intent (NOI) were filed and approved by OMLR prior to the commencement of these exploration programs (Jumbo Mountain: NOI CX-92- 212-00, Raven Gulch: NOI CX-93-212-01, and the West Elk Mine area: NOI CX-94-212-02). MCC filed and received NOI Nos. CX-95-212-05 and X-95-212-04 for exploration activities during the 1995 and 1996 drilling seasons. In 1997, MCC received approval for Notice of Intent to Explore No. CX-97-221 for Federal Exploration License No. COC58219. Another Federal Coal Exploration License was applied for in November 1998, and was approved conditionally by the BLM, provided the information satisfied the USFS Forest Plan or until 2007, whichever is first. The Federal License granted for the Sunset Trail Exploration was COC-62540. The license is still pending with the USFS. In 2003, MCC submitted an NOI for Alluvial and Hydrologic Monitoring Wells located on Federal Coal Leases held by MCC, but, not within the Permit Area (permitted at that time) for West Elk Mine. In 2005, MCC received approval for Notice of Intent to Explore No. X-20050212-06 located on fee and other Federal Coal not within the Permit Area (Dry Fork and Lions Mesa) for the West Elk Mine. In 2006 MCC received approval for Notice of Intent to Explore No. X-20060212-07 located on federal coal for the Deer Creek Shaft (Geotechnical holes). Future drilling activities will be conducted in accordance with Section 2.02 of the Regulations of the Colorado Mined Land Reclamation Board for Coal Minim and in a manner that protects the environment and complies with all applicable Federal and State rules. 2.02-2 Revised November 2004 PRIG; Rev. April 2006 PRIO, Oct. 2008 PR14