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CMA Page 3 of 3 <br />December 8, 2011 <br />Jim Kiger, Oxbow Mining LLC, Wendell Koontz, Ark Land Company and Scott Wandstedt, Blue Mountain Energy <br />are to be commended for completing excellent reclamation work in harsh environments. <br />Excellence in Minimizing Land Disturbance and Coal Waste Rock during Construction of a <br />Coal Preparation Plan <br />Mountain Coal Company L.L.C. — West Elk Mine' <br />P.O. Box 591 <br />Somerset, CO 81434 <br />Contact: Chris Nyikos, Project Manager and Kathy Welt, Environmental Engineer <br />970 - 929 -5015 <br />Mining at the West EIk Coal Mine began in 1982. Coal was first removed from the uppermost "F" Seam, <br />utilizing room - and - pillar extraction methods. Development of longwall mining in the lowermost "B" Seam <br />began in 1990, and progressed to the middle "E" Seam in 2007. Unanticipated seam thickness deviation and <br />sandstone intrusions in the "E" seam led to higher- than - expected volumes of waste rock and reject coal being <br />generated, resulting not only in less marketable coal but also filling Mountain Coal Company's permitted <br />refuse pile space much more quickly than planned. Coal production diminished from a rate of 6.89 million tons <br />in 2007, to 5.86 million tons in 2008, to 4.89 million tons in 2009. <br />In 2010, Mountain Coal Company engineered, permitted, and constructed the new West EIk Mine Coal <br />Preparation Plant. Due to the extremely steep surrounding topography, the Coal Preparation Plant was built <br />directly upon the former Lower Refuse Pile, with the waste rock truck loading bin situated atop the existing <br />Refuse Pile Expansion, and new conveyors erected along existing road corridors. As a result, no new surface <br />disturbance was created. In late 2010, more than 500,000 tons of "E" seam coal was processed in the new <br />Coal Preparation Plant, resulting in an 89% yield of salable coal product, with re- processing of previously <br />generated refuse also occurring. Coal production at the West Elk Mine increased from 4.84 million tons at the <br />end of 2010 to an extrapolated rate of 6.53 million tons by the end of 2011. <br />Mountain Coal Company is recognized for addressing operational challenges in a way that improved resource <br />recovery efficiency, reduced coal refuse generation, and limited construction of the Coal Preparation Plant to <br />the existing disturbance area. <br />Please let me know if you have any questions or if you need anything further. Thank you for your ongoing <br />support of this valuable awards program. <br />Sincerely, <br />Sandra L. Brown <br />Sr. Environmental Protection Specialist <br />c: Loretta E. Pineda, Director <br />David A. Berry, Director Office of Mined Land Reclamation <br />