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Exhibit 40 - Rail Loadout at Jansen <br />• EXHIBIT 40 RAIL LOADOUT AT JANSEN <br />INTRODUCTION <br />New Elk Coal Company (NECC) proposes to utilize the existing Jansen industrial site located <br />one mile southwest of Trinidad, Colorado as a coal loadout facility for the New Elk Mine (Figure <br />1). The industrial site has been used over the past 20 years for loadout operations, including <br />coal shipments from the Golden Eagle Mine. This site will be used as an interim loadout until <br />the rail spur from Trinidad to the New Elk Mine is completed in 2012. <br />LEGAL AND FINANCIAL INFORMTION <br />Right of Entry <br />The existing loadout site is owned and operated by Kern Valley Railroad (KVRR). NECC will <br />lease the facility from KVRR during the period of operations. The lease agreement is attached <br />as Attachment 1. <br />Detailed Legal Description <br />The permit area consists of a tract of land located in part of the SE1 /4 of section 22 and part of <br />the NW1 /4, SW1 /3 of section 23, Township 33 South, Range 64 West of the 6 th p.M., County of <br />Las Animas, State of Colorado, more particularly described as follows: <br />Beginning at a point on the southerly right of way (ROW) of the C and W Railroad ROW at <br />station 477 +33.3 on the east end of the Jansen yard limits and the northerly ROW of the <br />Burlington Northern Santa Fe (BNSF) Railroad; from which the southwest corner of section 23 <br />bears S12 °16'13 "W, 1,913.94 feet; thence along the southerly ROW of said C and W Railroad <br />and the northerly BNSF Railroad ROW the following two courses: <br />- S49 0 33'06 "W, 573.53 feet to a point; and <br />- Along the arc of a curve to the left with a radius of 1,362.16 feet and an arc length of <br />491.51 feet, the chord of said curve bears S39 0 12'52 "W, 488.85 feet. <br />Thence departing the BNSF Railroad ROW and continuing along the C and W Railroad <br />boundary the following nine courses: <br />- N67 °59'20 "W departing the northerly ROW of the BNSF Railroad, 127.43 feet to a point; <br />- S59 9"W, 1,171.75 feet to a point; <br />- Along the arc of a curve to the left with a radius of 1,322.50 feet and an arc length of <br />619.20 feet, the chord of said curve bears S46 °29'31 "W, 613.56 feet; <br />- S33 °04'44 "W, 226.21 feet to a point on the south line of section 22; <br />- N89 °30'26 "E along the south line of section 22, 168.03 feet to a point; <br />- S33 °04'44 "W, 915.20 feet to a point; <br />January 2011 1 <br />