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RULE 2 PERMITS <br />2.03.5 Compliance Information <br />The Applicant, Colowyo, its subsidiaries, affiliates, or persons conVOlled by or under common control <br />with the applicant has not had a federal or state mining permit for surface coal mining operations <br />suspended or revoked in the last five years; or forfeited a mining bond or similar security deposited in lieu <br />of bond. <br />Since no suspension, revocation, or forfeiture has occurred, Part 2.03.5(2) is not applicable to this <br />application. <br />A list of violation notices received during the last three years by Colowyo in connection with the surface <br />coal mining operation is provided in Exhibit 2, Item 3 (Volume 2A) which is periodically updated by <br />Colowyo. The list of violation notices received by those companies related through the "ownership and <br />control" relationship is also provided in Exhibit 2, Item 3. <br />2.03.6 Right of Entry and Operational Information <br />The documents contained in Exhibit 1 (Volume 2A), vests the rights shown in and to surface estate and to <br />the coal estate within the South Taylor/Lower Wilson permit revision area. <br />2.03.7 Relationship to Areas Designated Unsuitable For Mining <br />The South Taylor/Lower Wilson permit revision area is not within an area designated unsuitable for <br />surface mining activities as defined in Rule 7 or 30 CFR 764 and 769 or under study for designation in an <br />administrative proceeding under Rule 7 or 30 CFR 764 and 769. <br />2.03.8 Permit Term Information <br />The term of mining for the South Taylor pit is from 2007 through 2017 with reclamation work extending <br />into 2020. Colowyo has submitted information within this application to cover the entire fife-of-mine <br />area, including the next five-year permit term. The anticipated timetable for each phase of mining and <br />reclamation and the anticipated number of acres to be affected aze shown in Table 2.03-1 within the <br />existing permit. <br />The initial approval of the Colowyo Permit No. C-81-019 issued on November 4, 1982 applied to the <br />entire initial permit area which also represented the life-of-mine area at that time. <br />The acquisition of Federal Coal Leases D-034365, C-35874, C-29224, C-29225, C-29226, C-0123475, C- <br />0123476 and State of Colorado Coal Lease 257-135 has provided for a substantial mineable coal reserve <br />at Colowyo. The information submitted herein applies to the entire revised permit area which also <br />represents a revised life-of-mine area. The initial permit application has been revised where appropriate <br />to incorporate the mining of these additional reserves. <br />2.03.9 Insurance Information <br />Information concerning insurance held by Colowyo is included in Exhibit 3, Volume 2A. <br /> <br />South Taylor/Lower Wilson -Rule 2, Page 19 Revision Date: 11/30/06 <br />Revision No.: PR-02 <br />