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Lease (Cyprus No. 520033) <br />Dated May 1, 1981, between Birch, et. al., Lessor and EC, Lessee. <br />• Township 6 North, Range 91 West, 6d' P.M. <br />Section 31: Tract 39 <br />Containing 70.10 acres coal interest, less 11.22 acres owned by the State of Colorado. <br />2.03.7 AREAS DESIGNATED UNSUITABLE FOR MINING <br />No lands within the proposed permit area have been designated unsuitable for mining under the Surface Mining and <br />Reclamation Act of 1977. The U.S. Soil Conservation Service has not designated any lands as prime farmland in the <br />permit area. <br />No surface coal mining operations will be conducted within 300 feet of any occupied dwelling or within 100 feet of <br />the outside right-of-way of any public highway, except in those areas where valid rights exist. A demonstration of <br />EC's valid existing rights, which was used to grandfather portions of the mine, can be found in Exhibit 4, AVF <br />Exemption Request. Also, certain sections of the county road were vacated and EC is responsible for maintaining <br />those roads. A copy of the vacation document can be found in Exhibit 5 County Road Vacation Document. <br />2.03.8 PERMIT TERM INFORMATION <br />The Eagle No. 5 Mine was started in 1969 and has been in operation since that date. The Eagle No. 6 Mine started <br />operation in 1987. The anticipated life of the mine is approximately 25 years, based on the coal reserves presently <br />under lease. <br />• The Eagle No. 9 Mine is now abandoned. The portal area is utilized as a refuse disposal area as addressed in a prior <br />application. The term of this permit application is for 5 years from the date of approval. <br />The Empire Mine Complex remains in temporary cessation (mine went into temporary cessation on December 3, <br />1995). <br />For the horizontal and vertical extent of the existing underground mine workings, see the No. 5 Mine Plan Map (Map <br />23), for the Eagle No. 5 Mine, and the No. 6 Mine Plan Map (Map 24) for the Eagle No. 6 Mine. Start dates for any <br />subsequent mining will be determined following permit approval for any proposed future mining. It is anticipated that <br />any future mining would continue from the point in the mining sequence where mining was suspended in 1995, as <br />shown on the above-referenced maps. <br />2.03.9 PERSONAL INJURY AND PROPERTY DAMAGE INSURANCE <br />EC is self-insured through its parent companies for an amount no less than $1,000,000 for bodily injury and property <br />damage and with the same minimum for property damage. A copy of the Certificate of Insurance is enclosed in <br />Exhibit 1, Insurance Information. <br />2.03.10 OTHER LICENSES AND PERMITS <br />The following is a list of permits necessary for the EC underground mining activities. Copies of all historical <br />permits are included in Exhibit 2, Other Required Permits. <br />0 <br />Permit Renewal RN08-05 2.03-20 01/15/09