2012-11-05_REVISION - C1980006 (2)

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Kerr (Marr) Mine - Phase III Final Bond Release Request - Fermat # C -80 -006 INTRODUCTION Kerr Coal Company (KCC) has completed required reclamation of the Kerr (Marr) Mine areas and the former Loadout site according to the approved reclamation plan. This application requests release of Nineteen Thousand Six Hundred Dollars ($19,619.00) which is 100 percent (100 %) of the current bond amount associated with reclamation of the Kerr (Marr) Mine and Loadout site and release of liability for the proposed areas affected by mining and /or reclamation. This bond release request is formatted to effect compliance with applicable provisions of Rule 3.03.2. It includes the proposed notice of intent to seek bond release to be sent to adjoining property owners, surface owners, appropriate local governmental bodies, municipalities, county commissioners, planning agencies, sewage and water treatment authorities, water conservancy districts, and to be published in the local newspaper per Rule 3.03.2(1). 1.0 BOND RELEASE INFORMATION KCC is submitting this request for bond release effective October 29, 2012. The request references the Division of Reclamation, Mining & Safety Permit No. C -80 -006 for the Kerr (Marr) Mine and Loadout. The permit renewal date is March 20, 2011, Permit Renewal No.6 (RN -06). The Phase 111 bond release request includes release of liability of those areas affected by mining and is to include structures and roads approved by the Division for permanent postmining retention. KCC requests Phase 111 bond release for the following listed areas: • 4 acre parcel located south of and adjacent to the mine shop; • 4 acre parcel located south of and adjacent to the former (removed) powder magazine area; • The mine access road accessing the above areas; • The former Kerr Loadout site south of the town of Walden and to include the related access road to the site. Table 2 (enclosed), "BOND RELEASE AREAS" details the acreage for the areas described above. 1