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RULE 2 - PERMITS <br />2.02 - GENERAL REQUIREMENTS FOR COAL EXPLORATION <br />The following subsections summarize requirements and compliance for coal exploration activities. <br />2.02.2 - Exploration Involving Removal of 250 Tons or Less of Coal <br />Oxbow has developed an ongoing exploration program designed to accurately delineate and <br />characterize available coal reserves and to provide planning and operational information on coal <br />depth, thickness, quality and geologic conditions. The exploration program is designed to incorporate <br />the flexibility necessary to address changing mining conditions and coal markets and may, therefore, <br />include geophysical methods, surface trenching, surface rotary drilling and coring, underground rotary <br />and long-hole drilling and coring, underground channel sampling, and laboratory analysis of samples <br />taken ahead of the mining advance. <br />All of the historical exploration has been limited to the permitted mining areas. As Oxbow <br />approaches the limits of known minable reserves, however, it is anticipated that exploration may <br />extend beyond the permitted area. Future exploration will focus on potential extension of existing <br />operations in the B, C, D and possibly E coal seams, and identification/quantification of extensions <br />on these seams or in separate reserve blocks. <br />Because of the depth of major coal seams in the mine permit area and extensive historical mining <br />which has occurred, no bulk sampling is anticipated. Future exploration is expected to involve surface <br />trenching to delineate outcrop locations and conditions and drilling and coring or channel sampling <br />with recovery of substantially less than 250 tons of coal. Oxbow recognizes that a separate written <br />notice of intent to explore will be required for each exploration program in order to comply with <br />applicable regulations. However, similar practices will be utilized to establish access, complete surface <br />trenching, construct drill sites, complete drilling, provide for environmental protection during <br />exploration activities, and reclaim any resulting disturbance. <br />Basic information relating to all anticipated future exploration activities is presented in this section <br />and will be referenced in future notices of intent in order to minimize repetitive discussions and <br />expedite exploration program review and approvals. Exhibit 2.04-E3, Geologic Information, has also <br />been established for insertion of all existing and future notices of intent to explore and the resulting <br />geologic information, to provide a logical location for reference to this information. <br />The party seeking to conduct exploration activities is identified as follows: <br />Oxbow Mining, LLC.. <br />P.O. Box 535 <br />Somerset, Colorado 81434 <br />(970) 929-5122 <br />The company's representatives who will supervise and be responsible for exploration activities are: <br />Mr. Ken Ball <br />Mr. James Kiger <br />Oxbow Mining, LLC. <br />3737 Highway 133, P.O. Box 535 <br />Somerset, Colorado 81434 <br />(970) 929-5122 <br />RN-5 2.02-1 Revised October 2009