2010-03-02_PERMIT FILE - C1981012A

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2.03.5 COMPLIANCE INFORMATION • Neither NECC or any of its affiliates or persons controlled by or under common control with it, has had a mining permit for surface coal mining operations suspended or revoked within the last five years. Nor have any such entities forfeited a mining bond or similar security deposited in lieu of a bond in connection with any surface mining operations. Cline Mining has not received any notices of violation within the last five years. New Elk Coal Company LLC was issued NOV CV-2008-005 on August 26, 2008 for failure to control surface runoff on the out slope of the refuse disposal fill. The violation was terminated September 23, 2008. Civil penalty is pending review. 2.03.6 RIGHT OF ENTRY AND OPERATION INFORMATION NECC's right to enter and conduct surface coal mining operations is not subject to any pending litigation. NECC and its lessors own the surface and coal within the permit area. Map 1 shows the surface ownership in and adjacent to the permit area. Surface ownership within the permit area is owned by: New Elk Coal Company, LLC • 122 West First Street Trinidad, CO 81082 State of Colorado, Division of Wildlife 6060 Broadway Denver, CO 80216 Coal Ownership (Allen Seam) within the permit area is owned by NECC. NECC owns the Golden Eagle Mine Colorado Permit No. C-81-013 and the Lorencito Canyon Mine Colorado Permit No. C-96-084. There are no purchases of record under real estate contract for property overlying areas that NECC's mining activities will affect during the next five years. 2.03.7 RELATIONSHIP TO AREAS DESIGNATED UNSUITABLE FOR MINING The proposed permit area is not located within an area designated unsuitable for surface coal mining operations or under study for such designation. NECC does not intend to conduct surface mining activites or to conduct or locate surface operations or facilities within 300 feet of an occupied dwelling. RN-5 2.03-6 (Revised 10/02/08)