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I• <br />Appendix C <br />Right of Entry and Operation Information <br />Central Appalachia Mining, LLC, bases its right to enter and begin surface coal mining <br />operations in the permit area upon the following documents: <br />Deed and Assignment dated May 19, 2003, between Lodestar Energy, Inc. and <br />Lodestar Holdings, Inc. and Central Appalachia Mining, LLC, "CAM". The Deed <br />and Assignment conveyed to Central Appalachia Mining, LLC, certain Fee <br />Property, Federal Coal Leases, Property Rights, Private Coal Leases, Federal <br />Non-mineral Lease and Rights of Way and Water Rights along with other property <br />rights. The Deed and Assignment follows as Exhibit 1. The "Property' conveyed <br />to Central Appalachia Mining by the Deed and Assignment is discussed below. <br />a. Fee Property -None of the Fee Property conveyed is applicable to the right <br />of entry for the McClane Canyon Mine. <br /> <br />b. Federal Coal Leases -Federal Coal Leases C-0125515 and C-0125439 <br />are within the McClane Canyon Mine permit boundary. The BLM approved <br />assignment of the Federal Coal Leases through its decision dated <br />November 4, 2004. The BLM decision document and copies of the <br />Federal Coal Leases follow as Exhibit ib. <br />c. Property Rights -None of the Property Rights are applicable to the right of <br />entry for the McClane Canyon Mine. <br />d. Private Coal Leases -The private coal leases are applicable to the <br />McClane Canyon Mine. An explanation of the private coal leases follows <br />as Exhibit 1d. <br />e. Federal Non-Mineral Lease and Rights of Way -None of the rights-of-way <br />are applicable to the right of entry for the McClane Canyon Mine. <br />Water Rights -None of the water rights conveyed are applicable to the <br />McClane Canyon Mine except and to the extent water is hauled to and <br />consumed at the McClane Canyon Mine <br /> <br />The rights of Central Appalachia Mining, LLC, to enter and begin surface coal mining <br />operations is not the subject of any pending litigation. <br />11 /04 <br />