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COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />1313 Sherman Street, Room 215, Denver, Colorado 80203, (303) 866 -3567 <br />Permit Expiration Date: July 6, 2016 <br />MINING PERMIT - COAL <br />Permit Date: July 6, 2011 Permit No. C- 1980 -004 <br />THIS PERMIT is issued by the Division of Reclamation, Mining and Safety, Department of Natural <br />Resources, State of Colorado. <br />RECITALS <br />RECEIVE <br />AUG 18 2011 <br />pivisAon a d S a n. <br />Mining <br />I. McClane Canyon Mining, LLC ( "operator ") desires to conduct a mining operation known as the <br />McClane Canyon Mine for the purpose of extracting coal. <br />II. On July 27, 2011 the Division of Reclamation, Mining and Safety ( "the Division ") approved the <br />operator's application for this permit, fixed the amount of bond and directed that this permit be <br />issued upon the filing with the Division of bond in the amount so fixed in form and substance <br />approved by the Division, and such bond has been so furnished. <br />III. On May 31, 2011 the Division made the following findings: <br />(a) The permit application is accurate and contains all information required under C.R.S., <br />34 -33 -101 et seq. and regulations promulgated thereunder and that all the requirements of <br />Article 33 of Title 34, C.R.S. ( "such article ") for the issue of a permit have been <br />complied with; <br />(b) The applicant has demonstrated that reclamation as required by such article can be <br />accomplished under the reclamation plan contained in the permit application; <br />(c) The assessment of the probable cumulative impact of all anticipated mining in the area on <br />the hydrologic balance specified in Section 34 -33- 110(2)(1) has been made by the <br />Division and the proposed operation thereof has been designed to prevent material <br />damage to the hydrologic balance outside the permit area; <br />(d) Granting the permit will not conflict with any designation decision issued pursuant to <br />