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SECTION III - STATUS OF STIPULATIONS <br />No stipulations have been terminated or added to Permit C-1992-081 since the last permit <br />renewal (RN-03). The permit only has two active stipulations, as follows: <br />Stipulation 7 was attached to the permit on June 15, 2005 with the approval of TR-06, <br />June 15, 2006. TR-06 approved the use of the Loadout to off-load rail cars at the <br />Loadout. Stipulation 7 required the operator to submit to the Division a duly executed <br />right of entry agreement to use the Seneca II-W Tie-Across Haul Road prior to hauling <br />any coal from the Loadout. No coal has been hauled from the Loadout since Stipulation <br />7 was attached to the permit. Stipulation 7 remains in effect. <br />Stipulation 8 was attached to the permit on June 15, 2005 with the approval of TR-06, <br />June 15, 2006. Stipulation 8 required the operator to provide the Division with an <br />approved copy of a revised air emissions permit prior to any coal unloading activity at the <br />Loadout. HGTI complied with Stipulation 8 on August 29, 2005 with the submittal of <br />Construction Permit 05R00020, issued by the Colorado Air Pollution Control Division <br />on August 23, 2005. Construction Permit 05R00020 expired August 23, 2008. <br />Therefore, Stipulation 8 remains attached to the permit. <br />SECTION V - PERMIT VARIANCES AND SPECIFIC APPROVALS <br />There are no specific variances and approvals by the Division for the Hayden Gulch Loadout. <br />SECTION VI - BONDING SUMMARY <br />As of July 22, 2010, the Division estimates liability at the Hayden Gulch Loadout is $1,092,258. <br />This amount is sufficient to assure completion of the remaining reclamation work at the site if <br />the work had to be performed by the Division, including the cost of re-establishing vegetation on <br />any revegetated areas, should those areas fail. The permittee currently has on deposit with the <br />Division two Travelers Casualty and Surety Company of America bonds in the amount of <br />$1,084,161. Due to updated costs to the Division's cost data conducted in June of 2009, the <br />liability of $1,092,258.00 is $8,097 higher than the cost estimate completed since the last <br />Renewal (RN-03). <br />SECTION IV - MIDTERM ADEQUACY QUESTIONS <br />Pursuant to 2.08.3, the Division finds that the permit application C-1992-081 contains two <br />deficiencies following the review for the purpose of fulfilling the requirements of the Colorado <br />Surface Coal Mining Reclamation Act, and the Regulations of the Colorado Mined Land <br />Reclamation Board for Coal Mining. The Division requests that the permittee correct the <br />deficiencies by submission of revised permit pages under appropriate revision applications, or by <br />activities on the ground, by December 1, 2010. <br />Hayden Gulch Loadout -4- 10/26/2010