2013-01-04_REVISION - C1981008 (8)

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Colorado Division of Reclamation, Mining & Safety January 3, 2013 Page 2 acres, but excluding approximately twenty five (25) acres of said lands which are south of the Colorado Cooperative Ditch (the "Morgan Property "). The Morgan Property is leased to WFC pursuant to a Coal Mining Lease of September 10, 1998, and constitutes the basis for entry by WFC. The published renewal application encompasses the Morgan Property. Michael Morgan and JoEllen Turner live on lands immediately adjacent to the WFC permit area and farm the Morgan Property within the WFC permit area pursuant to a farm lease with Frank and Mary Lou Morgan. As such, the Morgans are persons with an interest which will be adversely affected by the contemplated permit renewal. 2. TIMLINESS OF OBJECTION. The public notice in the San Miguel Basin Forum pertaining to the renewal application, Exhibit 1 attached, states that publication was completed as of December 6, 2012. Per Rule 2.07.3(5) the instant objection is timely filed within 30 days of the last publication. 3. RENEWAL IS IMPROPER BECAUSE JUDGMENT HAS BEEN ENTERED ESTABLISHING THAT WFC VIOLATED THE SURFACE COAL MINING RECLAMATION ACT AND ITS REGULATIONS AS TO OPERATIONS ON THE MORGAN PROPERTY. In Case Number 2010 CV 367, District Court, Montrose County, Colorado the Morgans alleged that WFC violated the Colorado Surface Coal Mining Reclamation Act ( "SCMRA ") and its regulations by: a) failing to conduct a proper prime farmland investigation prior to mining; b) stripping topsoil from the Morgan property without engaging in prime farmland soil handling practices; c) improperly removing prime farmland soils from the Morgan Property; and d) causing damage to the soils by elevating the salt and rock content, reducing the soil depth, and the like. Following a trial, on December 7, 2012 the Court ruled that: "It was Western Fuels' agent who conducted the initial soils survey and who erroneously determined that the property was not `prime farm land' causing the initial permitting to allow less stringent handling of the topsoil. As a result, soils were removed and applied to other property and unavailable for reclamation of the Morgan land. That failure on the part of Western Fuels and its agent constituted a breach of the contract and a violation of state statutes and regulations..." Findings of Fact, Conclusions of Law and Judgment, pp. 6 -7.