2010-05-10_GENERAL DOCUMENTS - C1981019

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were mined in the Section 16 Pit, which is also in reclamation. Coal from the Colowyo Mine is trucked to the Gossard Loadout and shipped to market by rail. Permit History Pre-startup activities for a surface mine permit commenced in the summer of 1973 and Open Pit Mining Permit No. 76-15 was issued on 31 August 1976. This permit was converted to Development and Extraction Mining Permit No. 76-15C/A on 25 January 1977. An application for Permit C-1981-019 was submitted on 13 September 1982 and the permanent program permit was issued on 4 November 1982. The permit was renewed on 10 July 1987 (RN-01), 30 June 1992 (RN-02), 30 October 1997 (RN-03), 23 October 2002 (RN-04) and 15 September 2009 (RN-05). Mining History Underground mining activities in the vicinity of the current permit were started in 1914. Colowyo conducted underground mining operations at the Red Wing Mine from 1945- 1974. Surface mining operations began in 1976 and have continued uninterrupted to date. Initially permitted as a single seam operation, Colowyo began its operations in the East Pit, mining from north to south. The East Pit was developed as a multi-seam operation (eight seams) in 1977. An eastern appendage of the East Pit, the Section 11 Pit, was approved in 1991 and was later absorbed into the East Pit. Coal extraction by open pit mining concluded in the East Pit in 2003 with highwall mining continuing until 2006. Operations in the two-seam Section 16 Pit were initiated in 1998. The Section 16 Pit mining was initially conducted from east to west but was later changed to mine from north to south, as coal resources were depleted. Mining in the Section 16 Pit concluded in 2002. The West Pit was developed as a multi-seam operation (eight seams) in 1998. The mining progresses from north to south and coal extraction continues to date. The South Taylor Pit was developed as a multi-seam operation (7 seams) in 2007. The mining in the South Taylor Pit will progress first from east to west (after the opening of the initial box-cut) then from west to east, as reserves are depleted. Coal extraction in the South Taylor Pit continues to date. Auger mining was conducted at the interface between the Section 11 Pit and East Pit from 1993-1994. Highwall mining operations were conducted in the East Pit from 2004- 2006. Highwall mining operations were conducted in the West Pit in 2004, 2006, 2007 and 2008 and are planned for other suitable areas as mining progresses. Highwall mining operations were conducted in the South Taylor Pit in 2009 and are also planned for other suitable areas as mining progresses. The use of highwall mining at the Colowyo Mine has extended the economic recovery of coal resources beyond the economic limits of deep-pit operations. Colowyo Mine 2010 Midterm Review Permit No. C-1981-019 10 May 2010