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• 2.05.2 <br />The reserve was initially accessed through the D -2 Seam. The initial five <br />year permit term was for mining the D -2 Seam in the fee and Federal <br />property. During March 1999, the Operator obtained Federal Right -of -Way <br />COC- 62688. This right -of -way allowed the Operator to develop Federal coal <br />for ventilation and access entries. These ventilation and access entries were <br />developed in two locations; 1) northwest of the Operators fee coal and; 2) <br />along the east boundary of the Operators fee coal. <br />During the first quarter of 2000 the Operator obtained Amendment No. 1 to <br />Federal Right -of -Way COC- 62688. This right -of -way allowed the Operator to <br />develop Federal coal. The Federal coal involved included an extension of <br />the North Mains and mining most of the D3 headgate. This mining was <br />necessary so longwall panel D3 could be blocked out and ready to mine. <br />Federal Coal lease COC -61209 was effective September 1, 2000. This coal <br />lease allows the Operator to extend its development to the north into Federal <br />• Coal. During June 2000 the Operator amended the permit (TR -16) to allow <br />advance of the D4 headgate and the North Mains so longwall panel D4 can <br />be blocked out and ready to mine. The amendment also provided for <br />extending the bleeder system to the north. During September 2000, the <br />Operator amended the permit (TR -18) to allow longwall mining in Federal <br />and private coal at the west end of the D2 Panel and at the western edge of <br />Bowie Resources Limited's fee coal property in the D3 Panel. <br />During February 2001, the DMG approved the Operator's mine plan revision <br />which included mining in the Iron Point Federal Coal Lease. <br />The Operator developed portals in the B -Seam and initiated development in <br />the B -Seam late in 2003. Longwall mining in the D -Seam was completed <br />during March 2005. Longwall production was initiated in the B -Seam during <br />April 2005. The permit will be revised later to include developing access to <br />the west under Terror Creek to mine the coal in the Bowie No. 1 Mine east <br />pod. <br />• <br />Permit Renewal * 'Z 2.05-2- 02/07 <br />/n P - -80 <br />/3 PPROVe� <br />