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2.03.5 COMPLIANCE INFORMATION <br />Neither NECC nor any of its affiliates or persons controlled by or under common control with it, <br />has had a mining permit for surface coal mining operations suspended or revoked within the last <br />five years. Nor have any such entities forfeited a mining bond or similar security deposited in <br />lieu of a bond in connection with any surface mining operations. <br />Cline Mining has not received any notices of violation within the last five years. <br />New Elk Coal Company, LLC, was issued NOV CV- 2008 -005 on August 26, 2008, for failure to <br />control surface runoff on the out slope of the refuse disposal fill. The violation was terminated <br />September 23, 2008. The civil penalty was remunerated. One violation (CV- 2011 -003) is <br />pending for equipment storage outside the approved disturbed boundary. <br />2.03.6 RIGHT OF ENTRY AND OPERATION INFORMATION <br />NECC's right to enter and conduct surface coal mining operations is not subject to any pending <br />litigation. NECC and its lessors own the surface and coal within the permit area. Map 1 shows <br />the surface ownership in and adjacent to the permit area. <br />The metes and bounds description of the permit boundary follows: <br />Beginning at Pt. 109 of the Terry Surveying Wash Plant Boundary Survey dated May 15, <br />1997; as filed with the Las Animas County Clerk and Recorder's Office in Book 964, <br />Page 914, and correction in Book 966, Page 578; thence, traversing around the permit <br />boundary for the following 41 courses; <br />1 <br />S82 °0'0 "W <br />for <br />1400', then <br />2 <br />S42 °30'0 "W <br />for <br />2050', then <br />3 <br />S52 °12'0 "E <br />for <br />900', then <br />4 <br />N35 °0'0 "E <br />for <br />1200', then <br />5 <br />S86 °0'0 "E <br />for <br />6700', then <br />6 <br />S6 00'0 "E <br />for <br />1200', then <br />7 <br />N87 °0'0 "E <br />for <br />1550', then <br />8 <br />S4 °30'0 "W <br />for <br />253.1', then <br />9 <br />S83 °36'32 "E <br />for <br />13617, then <br />10 <br />S 7 00'0" W <br />for <br />6600', then <br />11 <br />S84 °0'0 "E <br />for <br />1700', then <br />12 <br />N7 °0'0 "W <br />for <br />3700', then <br />13 <br />N7 00'0 "E <br />for <br />2200', then <br />14 <br />S82 00'0 "E <br />for <br />5900', then <br />15 <br />N7 00'0 "E <br />for <br />900', then <br />16 <br />N84 00'0 "W <br />for <br />3400', then <br />17 <br />N47 °0'0 "W <br />for <br />2809.5', then <br />18 <br />S7 °26'52 "W <br />for <br />2400.1', then <br />TR -59 2.03 -6 Revised 8/11 <br />