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package the necessary approvals for the unloading, storage, or loading directly onto trucks <br />specified materials within the unit train loadout and along Haul Road 43. Halliburton has <br />actively used the loadout facility since 2006 for these purposes. On July 9, 2007 the Division <br />received the Permit Revision No. 4 application from SCC. With PR -4 SCC requested that all <br />disturbed lands located at the Unit Train Loadout, Railroad Spur, and portions of the Overland <br />Conveyor be changed from a post mining land use of "Fish and Wildlife Habitat" back to the <br />original pre -mine land use of "Industrial or Commercial ". Closing on the purchase and sale <br />agreement was subject to obtaining approval of PR -4 for the post mine land use change. <br />SCC contacted the Mesa County Department of Planning and Economic Development to obtain <br />their comments on the plan proposed with PR -4. Mesa County Department of Planning and <br />Economic Development is the local government agency that would have to approve the use of <br />the land following reclamation and required Halliburton to obtain a Conditional Use Permit. <br />Subsequently, Halliburton on behalf of Snowcap Coal Company, Inc. submitted an application <br />for a Mesa County Conditional Use Permit to operate a sand storage facility at the Unit Train <br />Loadout site. In December 2008, Mesa County approved a Conditional Use Permit for the <br />Halliburton - Cameo Sand Storage Facility. In September 2009, following approval of PR -4 in <br />February of 2009, Halliburton's purchase of the property from SCC became final. Halliburton <br />has completed the construction of the Cameo Sand Storage Facility and is now using the site to <br />service the Colorado western slope oil and gas fields. SCC's alternative land use reclamation <br />plan for the Unit Train Loadout area allowed for the retention and future use of the 9000+ feet of <br />rail spur, the existing reclaim tunnel for storage, two concrete foundations to build a construction <br />field office and storage building and the existing roads. It also allowed for construction of a new <br />bridge over Coal Creek, new access road, construction of the multimillion dollar sand plant, <br />additional railroad sidings, barite storage facility and new individual septic disposal system <br />(ISDS). The project resulted in successful clean up and reclamation of the former coal loadout <br />facility. <br />This is the seventh bond release request (SL -07) filed for the Roadside Portals North and South <br />Portal Mines. The initial (SL -01) application was withdrawn. The SL -02 application for Phase I <br />bond release was approved October 27, 2003. Various reclaimed surface facility locations <br />within the permit area were granted Phase I bond release based on proper completion of facilities <br />removal, drainage control, and backfilling and grading, by the SL -02 decision. The areas granted <br />Phase I bond release remain in the permit area, and are covered by the reclamation bond. The <br />SL -03 application was approved October 31, 2007 and released from full liability areas overlying <br />underground workings at the Roadside North and South Portal Mines totaling 7,294 acres. The <br />SL -04 application was approved January 26, 2009 and 18 acres were released from Phase I <br />liability in the South Portal areas and at the site of the former overland conveyor /tube structure. <br />The SL -05 application was approved November 5, 2009 and released 2.1 acres from full liability <br />at the "Overland Conveyor" area located adjacent to the Union Pacific Railroad and south of I <br />9/10 Road. The SL -06 application was approved December 14, 2010 and released 14.8 <br />reclaimed acres from Phase 11 and III liability at an area referred to as the South Portal in T10S, <br />R98W, Section 34. <br />The Division presently holds a corporate surety performance bond in the amount of <br />$1,640,413.00 of which $661,061.00 is being requested for release. <br />Page 4 <br />