2009-02-10_PERMIT FILE - C1981022 (3)

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RULE 2 - PERMITS 2.01 -GENERAL REQUIREMENTS The following subsections summarize requirements and compliance for permitting of coal mining operations. 2.01.2 - General Requirements for Existing Operations The information contained in this application is designed to effect compliance with applicable regulations and requirements of the approved Colorado regulatory program. The format of this application is, therefore, consistent with the format and numbering system for the Regulations of the Colorado Mined Land Reclamation Board for Coal Mining. As required, Oxbow has filed this application with the Colorado Division. 2.01.3 - General Requirements for All Surface Coal Operations Coal mining operations began at the Somerset Mine in 1903, prior to any Federal or State mine permitting requirements, but under the provisions of a United States Geologic Survey Coal Lease. The original permit for the property was issued under provisions of both the Surface Mining Control and Reclamation Act of 1977 and the 1979 Colorado Mined Land Reclamation Act to U.S. Steel Mining Company on October 11, 1983. A succession of operators including U.S. Steel Mining Company (up to 1986); Kaiser Coal Corporation (1986 through 1989); Somerset Mining Company (1989 through 1995); Pacific Basin Resources., a subsidiary of Oxbow Carbon & Minerals, Inc. (1996 through 1998); and Oxbow Mining, LLC. (1998 through present) continued operations under the existing approved permit. The existing approved permit has been modified by Oxbow and previous operators through the mechanisms of both technical and minor revisions as required to reflect new information and advances in mining methods, and to meet changing operational needs. Oxbow has also worked closely with the CDRMS in developing comprehensive permit revisions (PR's). In particular, PR-04 addressed a major change to the Elk Creek operations and updated and reorganized the entire permit application package. It should be noted that baseline data and related analyses, operation and reclamation plans, and proposed mitigation and monitoring measures as presented in this permit document reflect the regulatory requirements and provisions applicable at the time these permit components were developed. With changing regulatory requirements, certain information may not be totally consistent with current regulations. To the extent possible, Oxbow has modified the permit information to fully comply with current regulatory provisions. Where such modifications are not practical or feasible due to grandfathering provisions or the desire to avoid redisturbance of sealed underground workings or previously disturbed and reclaimed surface areas, the information presented reflects the regulatory criteria in effect at the time of original approval and brief clarifications are provided as appropriate. 2.01.5 - Permit Term This permit application includes environmental resource information for the projected life-of-mine mining area and general operating and reclamation plan information for life-of-mine operations in addition to more detailed information for the current permit term. This permit application and all subsequent permit renewal applications are or will be for a permit term of five years, with the right of successive renewal. RN-5 2.01-1 Revised October 2008