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environmental information to assist in design for mining and reclamation. The mine <br />design has incorporated the topography, geology, environmental information, equipment <br />capabilities, safety, economics and regulatory factors to develop a plan for the most <br />efficient method of mining. <br />At this point the mine appears to be feasible and permitting is underway to allow <br />_ development of the mine. Studies, design, and permitting will continue through <br />acquisition of a Mining and Reclamation Permit from Colorado Division of Reclamation, <br />Mining and Safety (DRMS) and extend through final reclamation of the site. The <br />following is a general timeline for activities associated with permitting, mining, and <br />reclamation: <br />• Spring and Summer 2010 - Design the relocation of the Second Park Lateral <br />irrigation ditch for CC Ditch Company's approval. The design will include <br />temporary relocation during mining and permanent relocation after mining. <br />• Summer 2010 - Geotechnical and structural evaluation of County roads and <br />structures proposed to be used for coal haul route. These studies will allow an <br />informed discussion between the Mine and the Montrose County Engineering <br />Department to determine what upgrades will be required. Upgrade designs and <br />schedules will be prepared and agreements reached with the County Road and <br />Bridge Department. <br />• Summer 2010 - Submit Mining and Reclamation Permit Application to DRMS. <br />• Summer 2010 - Submit Special Use Permit Application to Montrose County <br />Land Use Department. <br />• Fall 2010 - Design for the surface facilities layout, services and foundations. <br />• Winter 2010/11 - Complete Special Use Permit process including necessary <br />impact mitigation plans and agreements. <br />• Fall 2011 - Permit and install monitoring well. Once the well is determined to be <br />suitable for the mine potable water source, it will be permitted as a water well and <br />the augmentation plan prepared. <br />• Fall 2011 - Receive Mining and Reclamation Permit. <br />• Winter 2011/12 - Construction of Second Park Lateral temporary relocation. <br />• Spring and Summer 2012 - Construct County road and bridge upgrades. <br />• Fall and Winter 2012 - Surface facilities construction. <br />• Spring 2013 - Move equipment. <br />• Spring 2013 - Begin mining. Sheet 6 of 6, Exhibit A, shows a preliminary <br />schedule for mining. <br />• 2014- Begin reclamation. <br />• Winter 2017/18 - Relocate Second Park Lateral to its final location. <br />• 2018- Complete mining on the subject property. <br />• 2019 - Complete final reclamation grading and revegetation. <br />• 2014-2029 - Ongoing monitoring and maintenance of reclamation <br />• 2029- Reclamation determined successful and bond release from DRMS. <br />Page 8