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APPENDIX 1-1 Legal Right-af-Entry Documents

~@I;~ DEC 3 1 \991 DIVISION OF Oil GAS & MINING

United States Department of tIle Interior OFFjCE OF SunFACR h~lNJNG Re::clnl11stlun nnd EnfOTc."eJnent .BROOKS To\\rERS IU20 J5TH STltEET

OFFJCE OFTHE JfEG10NAL DIRRL70R

l.)r.NVER. COLORADO 80202

FEB 1 7 1981

Hr. Vern91 J. Mortenten CoaGt~l States En~rgy Co~p~n1 411 West 1200 SDuth Midvale,·UT 84047

De.uv{~ This letter 15 jn re&ponse to your JaT1uary 19 c(Jrtespondl~nce ~nd dlecus;AioJ)c with John Carr concerni ng s revisioll to Coastal St lites '1.\101 ng plATh On ¥.Arch 25~ 1980~ OSH 8ppro\'ed Co.stlll State.s l'eQl)t'Gt 'to enter redf:l"al J,ease lJ-28297; t:h:1s approval was f!r8nt~o ourin& the period thtlt the mining lSnd

reclalD3t1on (H/R) plt;n for the ~nt ire It:!n8e ttrea was being reViewed. This Betton per1t.l1tted Coafttal StateR to f:)!tend :tecond East H.3in a sufficient

diGtance to allow the. completion of pancl~ 4.5, hnd 6.

As you ba~e indicated. the revised mine l~yout plan proposes to (1) extend

second Ros!: Main to the out crop (ell ~1 thin Federal Lp.aee tJ-28297) t (2) extend thi rd North Su bma1n to the outcrop (wi tb }lDlDC plan. the aalborl.a.d o((ie.r .ay r.quift • •_ . 7 Clf aU or p.rt ol the le ••• d aod 10 ptCl'l"1de _ iD...-tary of aD)' hduwical. eullw.l. .ed IU"ch.olo,ical ... lue.. n.. aW"'t'e,' ahall be coeducud bT a CfU.IUy.d prof ... iona I 1J"c:h. 01 or is ! • • ppro".d by the .uthcoris.d oHu:.r. aDd • "port 01 Ute aUI"Y',. .baU be .ubm.1u.d to the aat}"rtzaod atriter. Th, .pprov.l or atl • • plor.tian Of . . inin.c plan or the C01'I· tinu.~ion of .l ••• e O~"lion • • • ,. be- concillion.c! on the ."... provel Dr the .,,",~y .... parl. am! th • • pp1'"O"al III ......u ..... to Fet.CI the hi.toriell, cw,ur.l • • NS arch_Iocic.1 •• Iue ... The COlt of .nr Of . . eu~. to prot.c:t .ucb ,.a.!uc. eli .. ecwlt'"'t:! ••• "IWl of the .DrvC), ah.U be borDe br the le ..... e .nd hetlll .Dd 'e .Iur.. or bJa\orical. C1lltur.1. GIl" areheolo,icil •• Iu. .h.U rflJI,.m und.,. lbe- JadacW:"_ '" the Voillt'd 5,.,11'1 .. (b) l! ."}" it.m. or ' •• of biator!e.l. CUltural, Of archcolo,ic.l "due ..... diac17"n .. d duzinc I•••• oper.liolla, lhe I ••• clt' ah.1I inltD.diatclr -ot1[7 the lIIitUD, IDpIt"iaor • nd .hal: DOl disturb such heml or I •• tur... u"ul lb • •iDin, aupcn'iaDf l •• uel inatrvcliona. U the ..... M' .. ia ....1".d to ,.k. _ •• u~. 10 Jm)'.ct any h.lD. or '.afUre. of hI.toric.l. aahu'al. Of .rcheoJocical ".Iu .. 4iaCO't"...,.d durq 1_~. opn.uDrI •• the coal of Ole ~a.U1"Ita Ih.lI be banle by th. I••• e: aDd .ueh It.ID' a"d 'e.tUJ"e& .haU I'aDoIhI ...., the Juriadictiotl 01 the UAb.d Sta, ...

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.dnrl.iun,; laJoff Of t.TlDlnatiac.; ""I •• of pe, III .tb.e-, forma 01 CO.,poeCUUOll; .~ ... If"CtioD 'or uaWD&. 'acllldiAc .p,..... Uce,hlP_ ovae. t. ..-' 1D Co_pic.... ,lac-., .... U.bl. 10 .• l:Iplo,..,r • • 1Id oppUe.ou few I'1Dpl.,..ot. aotlc•• a. be po_uSed b, lH "lI&or ... tt.J.D.c fLlf"lt 1M .. OYialoaa thb &q "",I Opparhlllit, c.1a"N _ -

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wc.1A. AUTMORI%A"fION OF" OTHER USES AND DI~ POSITION OF" LE.ASED LANOS - (a) n.e lenor N • ..,.., • • the rilhl 10 .uthoru. other u ... a. 01. tM .UK I_de b7. "lul.uOD Or b,· inuiD" ill .dcUtioft IDt.hiJ la ............ lie.n.e •. peMIIUI ...... =co15 • • rirhn~f_ay, jacbachaC I. . . . . for the de".leplD'Dt of IDbIcrala Olhn than coal aader the Act. Tbc ·I ••• or m.y authorU • • nJ IItbn _ • • • lha I•••• e! land. Utat do 001. uDI ••• oo.abl,. un"""" _ttl! tit. nploration .nd nUwUn, o~atiD':'l. of tbe -.d \h. le ...t .h.U .ak • • U re •• Oft&blc .ffortl to •• oid iDllTf .... DC. .ith .ueh .uthoria.d ••••. (b) Th. . . . or ,. . .""•• the rlrt": (1) t • • • u ., ~,. ....i •• d •• pon or Ut~ .arl.c. 0{ lb ...... " lanG. DDd.., ••• Jslinl I ...· GIl' . ' - ..... b ...... &lI.' __ cled id ."'.c. I. "ot n .. c .... lry for Ut. us. 01. the I ...... in Ih~ a.traction anI! n:mOlo·.1 r:l the cool th .. ~in, or (U) '0 dl,p_1t 01 an, ~.o,"ce in .uch land. U auch di.pos.1 wiU DC7\ ~ •• _.b!y inl.rh-re ,.,·ittl tbe nploretion aIM! alAiIIl Dpafetl. . . at ..,

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te) U the I.a.ad land, b.y. bee" . . . . . 11 b"",,"I.- Ita d •• posed of _nder .......... ""'1 to th. Villi" 5'a'•• 01. d~pouu 0( cool ttI.rein. Ih~ 10.. •••• ab .. l1 c:_pl, .Itb .U COD:h!IO'n' .1 • • . , • • ). .ft~

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,...en-in, a.eb coal

he. H_ E~U"L O~POATU"'IIfY CLAUSE - Dwwc the ,..rlOrtftl,," 01 thl. ka.c. ____• • en-elto co.pl)' _llh .hc f",lio"·::,~: .•. L.tcl .. , "·;11 n:>1 dllu:Ti~una'• • • • a1'l,. ~107_ ,,~ "~·'.~I'::lIn: t Of ezr:p:l"ly:s.rD! iMc.u.e of r.c •• col." rel.. ,o". ...... o. II&UOII4: orACIO. lA •• et "'·ill ,.Il• • U .... ",••• Cljon u .nau, .. \hi: .PJlhcant. . . . . . . plo,.·..d. and Uoal ••plo,·•••

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(I) 1...... -w co-pl1 "lUI aU pro.-taloaa eI E. ••cwU... CrIoar No. 11246 of '-"PtaNeT '4. 1965. a • • -d.d ...... nil... "plat'--, .ad .. Ion_ • ..,.. ., a.. s..crn.u, ellA .... (e)

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-W ,....... ..U Wa"'IUtJoa .... I"IJ'OfU ... E.sec:ati ... Ordn No. 11246 ol '.pt.alJ)brr 24, U65 • u... nUe •• "CUlaUoa&. ao4 ... 6cn 01 liM

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~talT 01 Labor, ., pan-.Gt ~to. _15 ~ralt ac. e-. to bla book., "cerda • • D.d aceOUllU by- the s..c:re ..". . , \be bttnior aDd the "crau,.,. DI Labctr ,.- parpoa •• 01 ...... UC.t.iOG t.o •• _nag ~DCIt wUlJ • .c.Il nle. . . . p ..

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E.q-.J Opport:Jm.lt}" eI uu.a CODtrael _ .. AUl IUIJ .t the ••id nJ ...... p.lllros ... .-den, ULi5 Ie ••• _,. .. ca.a.c.ll.cl, \enlliDated or .DlipeDdHS 1D wbole ., ill ~rt aDd ~ , . . . . . --7 be dac!a,.d iDeJ.ie!ble lu:rtbltr c.onna.elll CDIltr&ct& or 1••••• ill .CXOfd.a~ -iUl ,.cc-ed_ • • aLborlz.cI 1D £,utlllh. Ord., No. 11246 of 5cpl.=bt:r 2". 1965. . . ._PCS.-d, aDd .Dcb Dther •• nct.iIlD' be laIp"... d .1Id remecti2. !DwolL" •• pro\'ided bo E1I:el:"ll1.In Order No. 11246 ., 5cptembcr 24, 1965, . . a_D6.-d . . . by rule. rwplaUoc. . , ...-de, 01 the Seen ... .." of Laber. 01" ... ol.be".i. . prowiod

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(c) -W iBelude the 1IIf_ialou 01 ,.,.pwpu (.) thrlNP tE) of lhiI aec:tJ.oa 15 in ...,.,. co.traet. auba CDDtlWICl. or purchase order 1II1l... _.llIpted by ".1.. , lau_, Dr orden of the ~ta,.,. 01 Lab« land P="'IUIDI to

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&a.coU.... OnSet No. 112-46 of Sept_ber 2",

19fi5, . . • . . D6ed. co that .Dcb POTUIOCI' .. Ul be bind1Dl .adl coal:ract._, ,1II:1coDtraC1Clf. ,. •• Nior_ La .... _W tab .och .cliOl'! _ith respect 1.0 anr C"Otlnct, auba coGtrect. 01 onS.t .. the k-cnt.ry 01 1.he Interior ..., &tirwct _ a ",.111 (If eniorcmi;" auc:b pro.i.liCIIUI u.cludinC .aDCUOI'l' lor DerncompH_oce: Prol"1.rti. bowrutr, Tb,at hi u.e "YtDt lb..... nlt baeo_. iII"ol .... d 111. Of 11 thre.'.aed -Ilb.. Uli«,UolIII "'·Ith • CDlltTaC"tOf. aubcoDtnclor, or •• ndor .. • ,..wt 01 aua d.1t-ection b), the $.ee11l:"'", 01 Lbc lalcrlor, tbe .u.u •• J ,..quaat 1M UaJ1.d Sl., .. to CnlIT aU! aue. JJtic.UOIl to prOlll'Ct the un.,..ta of lh., Ullil~d 61.t .... '"-c. 16. CER"fIFICATtON OF" NONSEGREGATED F"ACILI~ TIES - Br .Dlarinl into lhU k.lie. the I.,," ceI\Ui.. . lb., Ite doe. Dot aDd Dot lDaillta1D or ,.oyJde lor hil. .mploJ_a anT .cITelet.. 1S '.eWue. at.aD)' DI bil •• t.bU.t&rDent... aDd lbat be . _ . Dol aDd -W Dol permit hia emplo),•• s to perlorm their •• ,..,ic • • • t .OJ location ander hi. conuol . . ,nt,a'" 'aeUltlu aft .... iJltaiJlta d.. The Jan . . . .rr-• that • ","e.ch of lhil. c-ertJllcatioo b • • 'oiahoa 01 tbc Equal Oppor1anitJ c~u ... ol lh1l I••• e. A. Dud ;. thb c.rUlicaUoa., the 'e,. ·'ael"ltlu.d f.cWtia~" _ . u . but b - ' limJted to. aD,. •• llIAr roollli. work arc, ....... U roolD• • D.d ..ab l"DODIa, ..... uranU .1Id other .atiD, are ... , U - ClOCD. locker 1"Of:I1D' .Dd other at ..... l . ar dreui.Di . f t . . . p'rk.&llc Jot •• tlriUlDI fOWltaUu. "tNaLico a" cfttenai~elllll .re ... tnu port I tioc, .IM! bous1DC taeWti. . , . .."id.e! Ie". .mployees .lUch .nr b, nplleit eSiJoItetj". ill ,.C1 ..~pt.1! 00 the .... i. 01 ,.COC, color. "lilloG. or utiooal _'cill. bec.u... of babll. loc"~ evau,c: . .- (lt~",,·i... La .... 11IJther .pe. that (l1icept .Je . . _ hal obaai.noPd io.o. tk.1 cetUiicatioDI from propo .. 1td coatTaCI~ aDd .ube . . inDian for .pee1!ic U- periods) I.... " ..-ill ohtaill ideDt'-caJ arUfic:.UoD.& hOIll propo...d C.otrac, .... aDd '1Ibcool.ncu," pd.- '0 a.ard of CODu.eta or .obc_tReu •• c ....diQ,C 'IQ.ooo _bicb ..... Dot eumpl hOlD &he proyuioQl of tbe- E.qll.1 Oppora t1I.DJlJ chuae; lhal ...... wW ret.iD .ucb coertUicah••• ita Ie ..... '. flk.; .Dd lhat ...... 'I'IUI forw.rd the 'ollowmc aoUc. 10 ••eb prop. . ad CCUl\raCIgn .. Dd .ube ontnoclon (.acept wh.,.. prop. . . d coone, . . . . . ubcootne,o, baa •• bOIIU.4 idntin1 c:-erUficaUOIU for apecUic U- pariod.). Nou.e. to ,."pecti ... COI'IlnlCIon. aDd scbc:oeU.cl •• of rcqawIM. c.niJic.tiol'l Dr DODSetttp,.. d f.cUlli.... A C,.,.i/i" .. II01I 0/ No"u,rer.'.' F."i/lllf'l, AI' Nqlliftd b7 the ... ,. t, 196' . . . , (32 F _R. y HI, 1967) _ £1"'''''''1_ of t'I'" F.d/i,i". by t.be Ml:""Ntar')' 01 L.abor, au.' be lutaitt.d prio, lo lb.. . . . .nt or • Coalnct •• c •• din, '10.000 wbicb .. HI •••• P\ hot U,e pwo"iaiDlla 01 the Equ.1 Opportunity cl.aaoc. CArtUic.h _ _ ,. ..... ubmiu.d .acta e _ ~ct ••d .abcon"atl ., 'or aU tc>ftlnCU a1'ld •• beonO.ct. tlDri4e • ,..,iod (j ..... _u.n.,IJ, •• IIUamUlln,. or ....u.I.'). ","c. 17. EMPL.OYMENT P"AC"TICES - The .... ., aball , . , .U .a.e. due pa"_ e"'Ploy.d alii lht h . . . d I.nd, at I.a.t ... ice •• ch ..onth ill ....1ul ,..one)· .f the Urall .. d ILaI .. ,. The I ........ lhall 1'"'0' .l1l11i_ ."d .lMr •• pl..,..., c_p(.,e fr •• dor:. to pone-h .... lood. oNt •• r.lce of .heir . .·n choue, T~ I" •• e • • h_1I ~~If1C' Ih, .... kd_,. I. _I ..."" than , hou" i" .n,· aIM" Gar '0' andc-'rround worUr5. ~.c.pl in u •• of ._'Irnc,·, The ........... ~II elllploJ _ e,.o" MM.-I I~ .,,, 01 If- !I' ••,.._ ••r lII'nIt bel ...· .t.. .yr-

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Section ~ continued: The production royalty shell be 11.GE percent of th~ gross value of coal produced, but not less than $2.10 per ton of 2,000 pounds, shill be due on . coal extracted by the lessee from the leased lands. . Section 7 c~nt1nued: The adVAnce royalty shall be based on a percent as specified 1n

the lease of. 'the value of a mfn11t1J11 number of tons which shall be determined on a schedule sufficient to exhaust the leased reserves in 40 ,fears frtG the date of

approval of the mining

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TH~~,)XJ'ri:%)

STATES OF AMERICA

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(Till.)

'WITNESS TO SIGNATURE OF LESSEE

DED 2. 0 1:;~ (I)••• )

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It tbe la.1 .r \.bc S\ata ill .hlch u- a1De b att ... te4 poMbl: IN e1ftplofll'ell1, ill • mine botl... \.bc larfaC't • •r pe",on. of .11 .re p •• UaIJI 16 , • .,., Ute hi." alIra1J C-FIJ wiUi u..... a.....

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I.e 11. tf,ONOPOLY "ND "'AI'" P"ACTlCE.$ - 'tM . . . . . ... ,.,.... •• 'ull .m:h.,..Jt,. to P01111,1l&.' • • rod a~ ... c. ord..n aDd ,.,ul.tiOD. _de-t Ule Dl s.etiPtU SO aDd 32 .r 'be A.c1 pO LI.S.C. kcti_. ,., _d 119) .. te . . .". I. in· .ute n•• t &rrf •• Ie fIl U. podDdJ_ fr_ lba Ie •• ed JaDIS. ,. &be Viii... , Sta ••• _ to ,h. pubUc II .t n.l.lbl. pice •• t ......... ftl _anopolr • •nd to a""pud th. pobli.c _Ifu., "".1 ."cb "pla1I"1 .)aall 89- pr_u.1cl1.i_ . . . .WiDi

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s..c.. II. ASSII~NMENt- "nUa I.... ..., M ... lpe4. . • ".._.1 o( Ibc .1Ilh_ba-d alllt.f. LIr. ·accriU1C"9 .tua Ibe p ... hi .... _ cl Cl CP'R Sub,..". 3506. A.a .. a;.p-1Il wW ""-c_ dfacUu ... tbe 'int d.,. ., lbe ebIIt.b foU-iDe 1~.1 by -tN .utbOfbe-d IIlCic:. • • , U 1M .I.~ ip ...t •• the Ute iD_UI et tile .W-aL

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,h, d.,. ., S.c.2C • .-EL.INQUISHMtNT OF' LIlAS! - na Se . . . . . ., ru•• ,.q_.t '0 nliDquiab aU alii, .. ,al .ubdiy.. l ... cI UU. Su... "%'b.... .MU be m.d la willi. tM lilt'

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nlillqIJiduI.CDt U he d.,..,.i.a •• u.., lbe ~a ... ~a. e_plied _ab ,b. Nqoa.n_Dta ol OM lea.e. lb • • xplC1r.UOCI !lAd a.lD..lDC p1&A&. \b. . . . piaHODI aad t.M Act. LlpoG .pproval. &be reliDqui.tameat .ball be df.~e sa ., the dal. is b rued, "hjed to the eoatinued DbU,.ti_ IIf lb. Ia ..... Utd Ilia .aret,. to par aU .CCT1Ita: nll,.la .nd roraIU •• aNt to Ccn:DIIly _alb all otbar rrquln_trtl of t.bII I...... the .-.cvLaU_, the ... p1 • .u_ aa4 plaaa, tbe ... pleti_ UId 1M Ac:t.

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Sec. 21. NONCOMPLIANCE - ArJ, the e_d1tJ.. aI· tbb J•••• , Uta plana. Ute nplation.. ... u.. Act acc .... Dee -Ub u.. pr~ ...... 11.

faUare to e. .,iy _b,b expl_li_ aaI ..uw.c .b.U be d . . U wi1b 1111 fort)a la u.. FepaUoaa.

s.c. %2. WA.IVER OF' CONDITIONS - Th. a. ••• ,..a"", •• UI. riPl to woi.e .or ..... eb ttl lbe coadltion. cOGlainld 1D tid. k .... ncep: tbe w.aeb fill .och colldUI_1 •• are ,... ."weoll! b,. tbe AC1. "10ft al:lY .oc:h .aiver 'MlI tld.ltd _1,. 10 lb. put~.wu bre.ch 10 .aind lad .haU DCIt Jimll the r"bn 01 th. lIt .. cr wllb ".~ct 10 _,. future br.. ch; DCI' .h.ll U.e waiVef 01 • ptU'tiClIW bre'cb pre.allll c.DCd1.aoon cI thil k .. e I . aDT at))ef C.U... .. '''' Ute . . . . clu.a oceania, at. a"l'lbet ......

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e_ensalD, rer.1Un. abLlJ "1II.in b:. eU.ct "QUl U:~ ~ •• .r-=.lIt INt .... D lb. I ••• or .,.d tbe k •••• _ ~. __ coodihonl to be lacorporu.d lrl lb ....... _ ..til 1M a. •••• a. ..... h ..... tee! au... ri&btl ot .~.s .ad" ••nl. . :9 01 thh S..... II': UlI,lI tlIt . . . , I. ttr-in.'tl!. " _ .... t. Ute ".djust'" ro,.",· povbhlCll aball ~. ellteli. . . . .11 tIIoeft ia .nh.r OC'''lMDt betwnr. the I. . a .... aDd tbe 'U." Dr .,.U the I.... .. t .. rmla..... U tb. ....dj... td ,..... laJ are .ab.ell".lIllr ro.clrlded .. tJo • ...... aba.U be penalnl' to endlt cea. ,..,&h, pare-sul .... lasl roJ.hl• • • 1Ib•• q~fIIlr due '0 .,.. ...... ....~ all

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s.~. 24. DEL1V£"Y OF' ""£MISO - UpoI' te,..inaUoe of UU....... f., _y .... - . Of n1iDqIJiahmclll of • ,..n of tJal • . le .... u.. .... " ..... u deli....., to ill. h u . ill ,ooc! ... .., uad cCDdltioe .U Dr t.be. Ipproprlale put of Ie . . . . JIDda. DeU• .,.,. IIf u.. d a-dl ahaU inelude ~nwroa.d t.Uab&riac - aCId 'oth., .Upportl aDd .~r..,. . . e .. ..,.,. f . tSte p._rnIIDCI cl tbe I f d.poslt, _ . aball be .. accorclaftce .,lII .U ..cheT .pplicabl. ,...... 1&1 ..... ., the rtpLaUOll& f . 1M c_pl.Uoe .., operatiOll& ... obatuI ........

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""OPfltIETAfltY INFORMATION - G.olOCical .... .ad. laI_aU_. lDdudu.1 ... ,... "atl. -.ad ~omDItTci.1 aDd riD_cia! iDS_.tian -~ \1M otlt.1D1 frPIII the 1••••• aball be tre.l.d ill acc...s . . .

•• cret••

a. •••41 C7Jt p.,.. 2. _~

s.c. 26. LESSEE'S LIABILITY TO LESSOR - Ca) no. Ie ••••• hall be lYb .. to tlIe Uliiled S,.t .. I • • '._111 lt1lfI_d bJ lbe UN.ed ".,.. ill uidn, f~ Dr c-.-.c:ted -illl. tbe _aa_· • •cdvilJ ... _d opeTlli . . I ~a 1h1a La ••• , ••c ... -bc1'e d.'''e. b cau.td by 'lIIpl..,. •• or till UaJ ... d SLIt •• ac:tiA, wl1bill \b• • Cllpe III lbel, . .tbwby. (b) 'tM Le.a .. ab.ll iDdemAilrlAdholdhanaLa . . 1M UaJt.d Sta,., - J ...s all cl.im, u'liDI b_ • . . etod with Ut. • •• _'. aci.iYIU.. UIId ..,.,.11. . . . . . .., dUe Lt•• e. tc) 1a _, c ....... n lJab.lUt,wlt.boal Jaab I, l.1li,.. •• _ the Le •• e. punlaa.t 10 QUa leetioll.. aDd the "'_111 im-ol. . d _e c.used by ,h .. action ot Ii third panr. n .. "'~... cI nbrOC.o..., .ball .pp1r in accvrd.nc:e -Ub tbe 1•• ., tbe jwladirtioa wh..,.. the d __ ••• MC1n'&d.

.D, ...,.

'roD

D,

c_.

Sec. 27. INSPECTIONS ANO INVESTIGATIONS - (.) All boob aDCf ... eordl ••un.illad br th. leaue Ih_iDc ill. 10I'1III0_ ,.qllind b, th1I J.... or ~raLalionl .Vlt .,. kept aCId ia .• uc:.b . . _e, that th. boola .nd .. ewdl C.II be ... dll)· ch .. ek.c!. Opoll ntlu . . " br the II:I.i.Ainc IUpet'Ylaor • bis " p " ' • •DlAti... a' t.b. pl.ce wh ..... ther .,.. cUlt_uU, . . illtained. (b) Tbe lea . .e ab.U pena,t duJ,. .utboriud IIlticer • n~.'II. ... ti.e or tbe I. . . . . . , ur " •• IID.ble u- (I) 10 .aped • ~."ir.'. the le ... c! land, .nc! .U ,urf.ce and DDolITITDUftd m:..pr_e •• lltl. ctun..,,· •• nd .quipmellt. and .U bOllu IDc! .. co"b pe".1nin, all lb. I...... ·' -obli. •• u .... '0 the leu. uDde, lbb 1. . . . . nd "CUl.'ionl Ilid (2) co",.. and . .lit e:nt.cta Ir ... -r auell bo..... and ,..c_d •. C'IIrflllll

s.c.

23. READJUSTMENT OF' TERMS AND CONDITIONS (.) The Ie .... ' ••,. propo •• lb. ,. •• oc.ble ... dio.UDell' of "'r cocCitiO!lI II! tbia I..... iDcludil1C ,or.lty r.t ••. tb. firl' re.c!juItClent to b. df.etiYe _ th. 2t>..b , • ., ahe, t.be effective d.'e .nc! aub •• qu.nt .... dju.t_nU 10 be tn.eth,e at 10·re&.l i.."'l.en·.b there.her. Tbe- lea • • Ih.U DOlllr the l •••• e- _bether b. lnl.r:wh 10 re.dju.t conditJ_. &.lid. JI be irltendl to ,..dju.t. th., D.nare or the , •• dju .. t_nt.. 11 11 ls ' .... tble. the 1. . . . . . b.n Ii" • • ucb DotjC" 120 d.,. bef .... · UI• •fI.cH". date of th., readjust_nt. JD OIlJ • • oat. _tU th .. I., ..... be.1I notUiad eithef tb.t Ula I•••• ' _ I will IN , •• dju.,.c! or th.t \be>J wW DOl be ,..djaftad. t.h.e k •• Of ... n".. the- ticb' to require ,...dju.'lIIeDt. Usal... the ..... e. within 30 d.,. .ft.f ,eceipt of .ucb DGllt.,. 'ile •. with th., .... or .11 ob;ec:tloc 10 tbe Jll"opo •• d r ••djuu.d condi,jOlu _ ,.Unquhh•• th .. J•••••• of tb • • ".ctl •• d.,. alth•••• ~jua'III.Dt. th_ I•••••• h.U be M __ d CDnclaall.eI, to baYe .CT.ed to ...eb eoodltiDD ...

"'11

(til 11 til. I ...... (U•• objeaJ_ to tb. propoa.d re· .c!Ju.tlld cDtldilion. wi1.h Ule I••••• - ' aree~nt cannot be n.che'!! ba'-"II lb. . . . . or .Dd the I...... _llbiD • peri~ of 60 d.,... .her the (llital or th. objection. tb. la ... . . ,. be leT1IIin.'ed bf .lUlln p.o.n)· up_ Ch'iAI SO oo:.ic. to tbt: oth ..r '.pa.ny; 'o~_r. UM 10.. .,'. ·ricbl to! 1~.t. the 1...... b.ll be ••• pelWled br Ute ........ fUiAC 01 • lIIoW:e 01 aJ'1lC.1 ,atII~t to s.ruoc 29 crt this ...... pc! it the 1....... i .. "ltim.tdr .acce .. J,,1 la b.la appeal. UI. l •• u .. ball cllllti4ue without ..... ch-C.· la the prod.I_., the .iJllp,"iJio~ of wb.ic:b. th. 1•• __ .ppuJad. U &b. le•••e 1a IUlItl.Cce ..J'w ill bi.a app... 1 aDd. wtth.iD )0 CI.,a of th .. kchioEl 0fI appeal .otIU.. &be ..... ., that •• acc.pta u.. IhciaioEl reDd.fWd uPDD .ucb appeal, u..n &lie lea •• aball c_tinu••• a_aded b,. Ut. Iliaci. 1_.

Iia,.'

Sec. 30. Special Stipulations

- $"

anr

-.b.•.

Sec. 21. UNLAWFUL .INTEREST - No _=b.., cI, or Dtl •• •• te 10. R •• idlt1ll C_~ia.j_r. ah., "il al.eUDD • • ppoint_nt. eithe, before- or .hc, be b .... ".Wad _d dDrUlI hh continu.nc. in oUiee. and no oIfi.cn. or ploy •• cl lbt D .. partmCDI or the lnle,lOl •••eep!. •• pr...,Wed to 43 CFR 7.4C.)(3). ah.U hold .n,. .b.... 01 pen ill tbi. a. •• e '" deri ... an)' wndit therefrom. The swov;.jona or Sectic S7-4' 01 the R.v, .. d S.a,ute ••••• _ndtd. -41 U.S.C. S.cUOIII 22. lad tb. Act Dt June 25. 1941, 62 Sl.t. 7D2 •• a _ _ d.d. 11 U.S.C. NCliOfl' -43' ..... 33. reJ.t~ til c01llr.eu. eale. into _41 f _ • pe.rt o( Ibis 1•••• iDao'u •• tHr - r be .pplieIlbJ••

c-r.... _

.111.

-= en

Sec. 2C1. A~PEA1.S Tb. ....... ab.U b.... the' ript 10 apopeiiJ .,., .."., .u )000.' froiz an a,:tion ordeci.i_ • by crtf~iaJ 01 th. BaTeau o! Lallie: W._,._nl (tI) UNler SO CFR Pan 290 fro: an or d.Ci.lioc III .D)· 1If'1c1aJ crt the LlD.bed St.tel Geolo,ic.1 or (c) __ , applic.ble rl"C'Dl.tiDD fr_ ,"), .ctin Of .... el.ion ., an)' M.bor oUiclal of lb. D .. parllDc-nt 01 the lnt..,;. sri.inc in e __ ctJOII with this J... e. lae.bldlDC an,. action ., d.cilion

.eO_. _d.r. SW"¥.,..

or

","uet to McdOft :n ,..dju....... at c..sui.l.

da.. ' ••se

willi. r •• ped ,. tile

attac:Md.

Thfs lelJt is allo subjeet to all ~;ulAt1tn~ ~f thE ~tcr~:~r) of [ner;y proe.Jl;Ited PUNlo6tnt t" Section 3QZ of the trep&rtment of tnergy O~~nt:lt1cn kt whtch art: no. or b.r~after tn forc.e and which are Mde & part hereef, e~cept thlt flO ls;enOment to the "pulattons ade subseoquent to tha effective det!! of thh l~asl! shall alur the nnul, and pro:1YCtton to1.1ty requ1rwment In kction 5 and , of this

Sect10a 1

ccnttn~~:

luse.

22

r.m:

UNITED STATES DEPARTJ,t£NT Of THE INTERIOR BUREAU OF LAND a.\ANACO\ENT

c-V-l6 19SI)

(D~ce",'"



Land Office

Salt Lake City. Utah Serial NUmDcf

COAL LEASE Act of Febrnry lS. 1920 (-41 St.t. 437)L as .""ended

Utah-0624S3

1.9

This leu,. calered Into DG _ _ • '.~ ~R J. h? ..... . •. .. 19 _ •• by lhe United States or AIDedc:a. U~C lessor. throuch the BUIUU of Land k .... uem~Dt ~ ~ne'l" Coal Company, Judge iu11d1n" U~MQ

Salt Lake City, Utah, Southern

Fuel Company, Salina, Utah and Equipment

~ental

Service, Salt Lake Ciry. Utah the lessee, FUfSuant .'US subject to the terms and provisions or the act or February 25. 1920 (otl Slat 437), •• • m~d~d. }:ueinaftcr rele.," to a. Ihe act. an4 10 all lI:uonablc re;u.1alions o( lhe Seerraetv 01 the Jnleriol no. In (oree ,.. ..ieh are .ade • part Moreo(. . • l'j,nu,II',6:

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.for .. 3103-2 (Oclobcr 196-4) _ - -001, 4-2111

UNITED STATES DE? ARTMENT OF ~HE INTERIOR 'BUREAU OF LAND MANAGEMENT

ST!PULATION FOR LANDS UNDER JURISDICTION OF DEPARTMENT O'F AGRICULTURE·

The lands .e'mbraced in 'this lease or permit bejDe under the jurisdiction DC the Secretary oC A,riculture, the lessee Of permitlee hereb), a,rees: .'

O):ro conduct aU operations authorized by this lease ·,ood land rnana,ement.:. not to cut or destroy limber without first obtainin& p-ermission Crom the authorized' representative oC the Secretary oC A,·riC\l!ture, and to pay for aU such timber cut or destroyed at the rates prescribed by such rePresentative; to a.void unnecess.ary damace to improvements, timber, crops, or other cover; unless otherw~se authorized by the Secretary DC Atrieulture. not to drill any well. carry on operations. make excavations, constNc:t tunnels. drill, or otherwise disturb the surface of the lands within 200 leet DC any buildint standin, OQ the lanes anc whenever required. in ..,ritinc" by the authorized representative DC the Secretary of Atric:ullure to renee Dr fill all sump holes, ditches, and other exc.vations, remove Dr cover all debris, and liD far as . . onabJy possible, restore the surface of the lands .. til former condition, 'including the removal of structures 8S and if required, and when required by such represent.live to bury all pipelines below plow depth. o~ permit with due re,ard Cor

(2) To do all in his power to prevent and suppress forest, brush, Dr ,rass fires on the lands and in their vicinit)', and to require his emplo)'t:oes, contractors, subcontractors, and e:nployees of contractors or subcontractors to do likewise. Unlesc prevented by circumstances over wnich he has no control, the lessee or permittee shall plat.e his employees, contractors. subcontractors, and employees of contractors and su~ contr~c'lors . employed cn the l~~s ~~ the, disp~saJ, of any authorbed office.: of the Department DC A,riculture for the purpose DC fiChUnC lorest, brush, or crass Cires on or oricinatinc on the lands or on adjacent areas or caused by the necligence of the lessee or permittee or his employees, contractors, subconlractors and emplQyees of contractors and subcontractors, with the understandint thal payment for such sen'ices shall be made at rates to be determined by the authorized representative DC the Secretary DC _

A Ericu1ture, which rates shaU not be less tha.n the . cunent rates of pay pre\lailin, in the viCinity for services of • similar character: ProviJeJ, that if the le-ssee or permittee, ·his employ~s,· contractors, s:u~ contractors, or employees of contractors or subcontractors, caused Dr could have p;evented the ori,in or spread of said lire or fires, no payment shan be Ina de for services so rendered.

Durin, periods. of ~'erious rire aan,er to lorest.. bNsh. crass, 8S may be specified by 'the authorized ·representalive DC the Secretary oC A &ric:ulture. the lessee or permittee shall prohibit smokinc aDd the buildin, of camp and lunch fires by his employees. contractors, ,subcontractors, and, employees DC contractors or subcon.tractors within the area iDvolved excep, ,at established .camps, and shall enforce this prohibition by all means within his power: Provid~J, that the authorized representative oC the Secretary of Agriculture may designate saCe places where, after an inflammable material has been cleared away, campfires may be built' for the purpose oC hea lint lunches and where, at the ,,?pti9n DC the lessee or permittee, smoking may be pennitted. Of

The lessee or permittee shall not burn rubbish. tra sh. or other inflammable materials ~xcrpl with the consent of the authorized _ fepresentative oC the Secretary oC Agric,uhure and shall not use explosives in such • manner as to scatter inflammable materials "'the sunace of th'e la~d~ during the" forest. brush, or &rass nre season, C%Crpl as authorized to do so Dr on areas approved by such representative.

on

The lessee or pennittee shall build or constNct such fire lines or do such clearin, on the lands IS the authorized representative oC the Secretar)' oC A&riculture decides is essential for Corest. brush. and crass fire preven lion \I,.hich is or may be necessitated b)' the emrnded (.n u.s. C. 43:2 ,1 "ll, J: Junr 2a. 1944 (51 St. t "6~ " 6rl/- J: Se~tember 1. 19.-9 (30 U.S.C. 19:2c); June 3D, 19S( (16 U.S.C. S08b); Dr under th~ authority or an)' 01 th~ Acu cited in Srclion .02 01 th~ Presidenl's Rt'orcaniza,ion Pia,

form of stipulation may be u .. ~d In CDnnection leases and permits issoed under the Acu of .. _,.".ary 25. 1920, as amended (30 U.S.C. 111 rl .u',.); Aurust 7, 19~ 7 (30 U.S.C. 351 1'1 .II'",.); Feb",a". " 1927. . , amended (30 U.S.C. 281 rl .II',. J; AprU 17. J 926 ••• amended (3D U.S.C. 271 rl s" •.); OClober 20, 1914, •• '.

No.3 of 1946 (5 U.S.C.ll3y-16, NOle).

34

C:xa..-C'ise oC th~ priviJe~es.

(7) If lee," perm1tt~ s.h.U constNct aft)' amp o'n the lanc, .. , su en camp shan be located at • place 'approved by' the authorized repn:sentative of the Sr-cretary of Attic:ulture, and such representative -shall hRve authority to requite that such camp be: kept III in a neat and sanitary concSitiolL.

,ibed by this Sease or .nd shall maintain such fire tools at his dqu:u\ers Of at the appropriate locatioD on the t.ands a.: deem~ necessary by such repr~:~ta.UYe..

f·}lIilit.

_ _

.

(

(J) 1ft the location. desi&n. construction and lDainteniltlcc of .U authorized works, ~i1din~. pJants, wa1er~'.ys, r~ads. tele&raph or telephone li~es. pip·eoti.l.~:'. reservoirs, tanks, pumpin, statiOns, or other stNclures .or clearance, the lessee or permittee .shall QQ .11 thine:: reasonably necessary to prevent reduce to t"'~ fullest .:xtent seanin, and erosion, or t~e laada, poltiltion of the 'Inter resourFes and any damace. to tho: 'I.:aters.hed. V,llere construction, ·operation,. Dr 1'1)\ i,\l~nanc:e ( any of the facilities on or connected with this lease or pennit causes damace .to th.c .. atershed or pollution of the water· res.t.urces. the lessee 'or permittee a,rees to repair such damale and t~' take such conective Ireasures to prevent further pollution or damace to ihe watershed .s are deemed necessary by the authorized representative of the Secretary oC A,riculture. .

(8) To comply with ~i1 the rules and ~e,ulations of

or

the Se-eretery A&tieulture covernin& the alUonal forests or other Janos under his jurisdidion which are embraced in this lease or permit..

or

(9) UnJess otherwise ~uthorized, prior to the be:iDninc • DC operaOons to appoint and maintain at .11 times durin& the term of this le-ase or permit a local acent upon whom lIIay be served written orden or notices rcspectin, matters C:ontaine~ ill this stipulation. and to inform the authorized representative of the Sr:cretary o~ A&riculture, in writinc,. or the name and address of such a cent. If. substitute a~ent is appointed, the: lessee or permittee. shall immediately SO inform tht: said representative.

(4) To pay the lessor or pennitter or his tenant or the surface owner Dr his tenant, as the case may be, (or any and .U dama,e to ~~ destruc:tioD or p'roperty cau'sed '--v the lessee's' or permittee's operations hereunder; save and hold the lessor or permitter or the surface owner or their tenants hannless from daraa2e or claims (or dama,e to persons or property resultinc from the lessee's or permittee's operations under this lease or permit.

(10) To address aU !natters relatin, to this stipulatiOJ

an

w

Forest Supervisor Fish1ake National'Forest

at

170 North Main Richfield, Utah 84701

.-

~

(5) To recocnize existinc uses and commitments, in the rorm of Department of A,riculture cra%in~ timber cullin&., and special use permits. water developments. ditch. road, trail, pipelin" telephone line, and fenee lights-of·",,·ay and other similar improvements, and to conduct his operations so as to interfere as little as possible .",'ith th~ tights and privile&es &ranted by these .'. permits or.·with ot.h~r existinc uses~· . . , . (6) To install and maintain cattle cuards to prevent the passate o( livestock in any openings made i~ fences by the lessee or permittee or his. contractors to provide access to the lands covered by 'this leRse Dr permit for automotive and other equipment.

35

who is the authorized represeQ~tive ~'fiPe Secreta, of A,riculturc, or. t~"~eb otheuepresont"aUve .s aUI from time to lime, ~rpesi,nata proSidEd that sue designwtion shall b~ dDr;,..ritin~.nd ~ ~elivered 1 the lesser: or pennitt:f;.m$is .,ent.. ~f"'"'\

~~("') ... , .... ..... :::r--.

-

or1)ie"

~

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--

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.JIr-..,J

(11) If:all Dr 8ny part lands ii'e with§j~ municip watershed, or are. ii\:;i'he opini~ of the ~U'lhori %1 fepresentative . .01... tJii~ Secrcta~. of.. A&ric:uhur primarily valuable {Dr tratershed p~ectioD, the lessl or permittee shall reseed or ot~wise restore tJ ve&e'tativr: cover, as required b)' the authorized repr sentative of the Secretaf')' oC A&riculture, for watersh protection and erosion prevention on any areas damag because of the operation.

UNIT)-]) STATts

...::; w

DEPARnlIm OF TlI1~ n,.tnlOR BUREAU OF IJ\.NO t1ANhCDIC\"T

~"

UtAll !'ThTT. OFFICE Post O[Uce lox Ho. 11.505 Salt LDkc City, Ut~ 84111

Office:

:"' ~~

0:'

S.l~

L:akc

Serial No. ttL 062583

.,

tiObI.FIED COAt LEASt UNDER. SECTION Ac~

of february 2S, 1920 (41

..

Sta~.

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en

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C1.~·:t; Ut~

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1.37), as mntmdc4

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.

,

This lease, entered into on Febru:ry 1, 1973, b7 the United States of Amcric3, thc. lessor. throu~h thc :aurc3.U of Lnnd H:ma&cmcnt. IUld Southern Utah fuel Campzmy of 655 Ycst First South, SaliDA, ,Ut:lh 84654, the lessee. WIl'NESSrm :

'l'HA!, 'mt.E:itW, the le.ssee is

UCN the holder of COAl Lease SL 062583, issued Sc:ptc:mbcr 11, 19l.tl, under the Act of february 2.5. 1920 (41 S~at. 437). cs =endccl, 'Whieh lease, as previously modified, embraces 2,042.77 acres 1.D Sevier County, Utah.

WHD'.EAS" upon applicAtiOn by the. le.s.ce far modifiiatioD of the lease, it has been found that it vill be to the adv~nta;c of tbe leslce and the United States to modify the lease UDder Section 3 of the Act cited to iDclude as additional lands the N;N~:, E?.i~t. Sec. 7. 't. 12 S •• Il. 5 E., SL }ler •• 'Utah,' containins 160.00 aeres.

AND

NOW. tHEREFORE, the lessor, in consideration of the rents ·and royalties to be paid and the covenants to be observed AS set out in .aid le~sc. does hereby Grant and le.ase to the lessee the ~:clusive ri~ht and privilcGe to mine end dispose of all c031 under. upon or in the N~N!t. t~h~~. See. 7, I. 22 S., Il. S E•• SL Mer., UtAh, , subject to the foll~in; conditions:

rms and conditions of this lease in accordance with. inler alia. St'ction 39 or the Mineral Leasing Act. 30 U.S.C. 209.

r,. LOGICAL MINING UNIT (lMU) • Either upon approval by the lessor of the les5et"s application or at the direction of the lessor. this lease shall becomE' an LM lJ or part of an LMU. subject to the proviaions set (orth in the regulations. Sec

Tht" stipulations established in an LMU approval in eUect at th .. timtof L~1l' approval will supersede the relevant inconsistent tt'rms of this lease so lonl( 8S the lease remains committed to the LMU. Jfthe LMU or whil'h this Jease is a part is dissolved. tht' Jease shall then be subject In thto lesSE' terms whirh would h3ve been applied ifthe lease had not bet'n induded in an LMV.

, Sec. 6. DOCUMENTS. EVIDENCE AND INSPECTION - At such times and .. in such Corm a8 lessor may prescribe. lessee shall furnish detailed .talements showing the amounts and quulity of all products removed and sold from the lease. the proceeds therefrom, and the amount used ror production purposes or unavoidably 106t. Lessee shall keep open at all reasonable times for the inspection of any Illy authorized officer orlessor. the leased premisea and aU surface and 1erground improvements, works. machinery. ore stockpiles. equip· ~cm t, and aU books. accounts, rna ps. and records relati ve to operations. lurveys, or investigations on or under the leased lands. Lessee shall allow lessor access to and copying of documents reason· ably necessary to verify lessee compliance 'nth terms and conditions of the lease. While this lease remains in effect. information obtained under this aection shall be closed to inspection by the public in accordance with the Freedom of Information Act (5 U.S.C. 552). Sec. 7. DAMAGES TO PROPERTY AND CONDUCT OF OPERATIONS Lessee shall comply at itsown expense with all reasonable orders ofthe Secretary, respecting diligent operations, prevention of waste. and protection of other resources. Lessee shall not conduct exploration operations. other than casual use. without an approved exploration plan. All exploration plans prior to the commencement of mining operations within an approved mining, permit area shall be submitted to the authorized officer. Lessee shall carryon all operations in accordance with approved methods and practices as prOVided in the operating regulations. having due regard for the prevention of injury to life, health, or property. and prevention of waste. damage or degradation to any land, air, water, cultural, biological. visual, and other resources. includin~ mineral deposits and formations of mineral deposit& not leased hereunder. and to other land uses or users. Lessee shall take measures deemed necessary by lessor to accomplish the inlent of this lease term. Such measures may include, but are not limited to, modification to proposed ailing or design of facilities, timing of operations, and specification of interim and final reclamation procedures. Lessor reserves to itself the i~ht to lease, sell. or otherwise dispose of the surface or other mineral 'plUllll:i in the lands and the right to continue existing uses and to Ithonze future uses upon or in the Icasl'd lands, including issuing leases for mineral deposits not covered hereunder and approving easements or rights·oC·way. Lessor sha II condition such uses to prevent unnecessary or unreasonable interference with rights of lessee as may be consistent with concepts of multiple use and multiple mineral developm en t.

Sec. 8. PROTECTION OF DIVERSE INTERESTS, AND EOUAL OPPORTU· NITY· Lessee shall: pay when due all taxes legalJy assessed and levied under the laws of the State or the United States; accord all employees complete freedom o(purchase; pay all wages at lease twice each month in law(ul money of the Unite-d Slates; maintain a SB(t> working environment in accordance with standard industry practices; restrict the workday to not more than 8 hours in anyone day (or underground worker., except in emergencies; and take measures necessary to protect the health and safety of the public. No person under the age of 16 years .hall be employed in any mme below the surface. To the extent that laws of the State in which the lands ure situated are more restrictive' than the provisions in this paragraph, then the State law8 apply.

Lessee will comply with all provisions of Executive Order No. 11246 of ~eplember 24. 1965. as amended, and the rules. regulations, and relevant orden of the Secretary of Labor. Neither lessee nor lessee's aubcuntractors .hall maintain segregated facilities.

Sec. 15. SPECIAL STIPULATIONS...... ;:

. ...

.....

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Sec. 9. (8) TRANSFERS This lease may be transferred in whole or in part to any person, association or corporation qualified to hold luch leaae interest.

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o

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This lease may be transferred in whole or in part to another pu blic body or to a person who will mine the coal on behalf of. and for the use of, the public body or to a person who for the limited purpose of crealing a security interest in favor of a lender agrees to be obligated to mine the coal on behalf of the public body. This lease may only be transferred in whole or in part to another small business qualified under 13 eFR 121. Transfers of record title. working or royalty interest must be approved in accordance with the regulations.

(b) RELINQUISHMENT· The lessee may relinquish in writing at any time all rights under this lesseor any portion thereofa8 provi~ed in the regulations. Upon lessor's acceptance of the relinqui8hment, lessee shall be relieved of all future obligations under the lease or the relinquished portion thereof, whichever is applicable. Sec. 10. DELIVERY OF PREMISES. REMOVAL OF MACHINERY. EOUIPMENT. ETC. - At such time as all portions of this lease are returned to lessor. lessee shall deliver up to lessor the land leased. underground timbering. and such other supports and structures necessary for the preservation of the mine workings on the leased premises or deposits and place all workings in condition for suspension or abandonment. Within 180 days thereof. lessee shall remove from the premises all other structures, machinery, equipment, tools, and materials that it elects to or as required by the authorized officer. Any such structures. rna· chinery. equipment. tools. and materials remaining on the leased lands beyond J 80 days. or approved extension thereof•• haH become thp property of the lessor. but lessee shall either remove any or all such property or shall continue to ~ liable for the coat of removal and disposal in the amount actually incurred by the lessor. If the aurface is owned by third parties.les8or shall waive the requirement for removal. provided the third parties do not object to such waiver. Lessee IIhall, prior to the termination of bond liability or at any other time when required and in accordance with all applicable law8 and regulations, reclaim aU lands the surface of which h as been disturbed, dispose of all debris or solid waste, repair the offsite and onsite damage caused by lessee's activity or activities incidental thereto. and reclaim access roads or trails. Sec. 11. PROCEEDINGS IN CASE OF DEFAULT - Iflcssee fails to comply with applicable laws. existing regulations. or the t.enns, conditions and stipulations orthis lease, and the noncompliance continues for 30 days afler written notice thereof, this lease shall be subject to cancellation by the lessor only by judicial proceedings. This provision shall not be construed to prevent the exercise by lessor of any other leJt:al and equitable remedy. including waiver of the default. Any such remedy or waiver shall not prevent later cancellatiun for the same default occurring at any other time. Sec. 12. HEIRS AND SUCCESSORS-IN·INTEREST • Each obligation of this lease shall extend to and be binding upon, and every Mnefit hereof shall inure to, the heirs, executors. administrators, successors. or .ssiRns of the respet- nt"Ct'~~3:"\' and c-nr.ye!!ien! Ir. tne exe:"':!se o!'t:;e rights a~ci priviieges ~teci . !uoj~ tc

::.e cundltions nerelr.

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~ , ~ , lal PRODUC; . ~~ ROYAL~=S - Tnt" royalt\ .. nHij ht- 8 pt-~ ' '. fi.l u:' the va i UfO 01 loe cuai as set i :- :-..:: ~n tnt- rt-,:w;.allunb , ~,\, altles a: ... : ~~ tu iessor tn€ fina l ca- ul the ~:::::: SUt'Ct."t"Ol::;': tnt" CRIE'nOar mOI: '.:-. ::-. which the r(waity o:J::lZauon e::-:-:-..:es ,

: ' "'DVANCE ROYAL 7,=5 - L·por. ~:.;esl b:-' tnt" i ~ , the 8uthonz~ may accept. fc: a lotal of r. :.; ~ ~o!"t" than : " \'f'srs. thl" paymen: .,:' a::vance fovailles Ir. j le~ of cont::::.;l""i Opt'fHt ltln c-onslstE'nt "'It~ ~~~ ations'. The advance royai;,. s::aij be ba~ on a pt'rcent of ti; ... of a m!nimur:: r:,,;:nDef ~:' :..:ns detE'~:n~ In thE' mar.ne!' -: .shed by the acvance royai:- ~iatlClf~~ :r. effet.:;I: .... __

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~mai: bU"ln~" uO ' ~"",r s acc-t'!):.anc-t' 01 lnt- rehnq ulsnmenl. ,~~~. ..na!j ~ :!'IIf",,'M r: ~.I future 'J:);:"atwns under the iease \..Ir ::-.:; "llnQu;snr-a ;-1'Ur.;~,:1 ::-.... :tvl. v.r.: c:;en'r :s appiic.l:I.oie.

305oe-ci :::::"':Ig CJr cieslgn :-acilities. timing of operan0ns . =.:-.:: .;~:::.:a::r.;-. 1/:' anc ::na i ~ ! amation proce6ures_ i-essor :-:~!>' es t.C ::..sel:- ::'e :0 iease. se.ii. c· ~ otherv.. ise cil~pose of t::e sur:a~ c, otr.E-!' :-:-::r.e:-ai _ ~ 5o::..s :r. tne lanes and the ngnt to con::nue er-snn~ t:5~ ar.c to ii~:-~onze fu .. ure t;ses upon or in the leaseci ian::£.. :::ciud:r.~ :.ssu:ng :cases i0r mmerai aeposits not covere6 ;-.ereu::::e!' anc anprov:ng easements or ri!'nt.s-of·way. Lessor shall conditior: s;;::: '.:ses to !)~event ~:::-:e. . :,....~ ~ ;ll ; ,.., u.::>a~ _. . -: Ir .~~ "'ks L..v. . . ,....mmonly en~' ~ ' ·"'·ere'i v •...... . , .. .::>l ..... IUl I I....Iv i -:::;; ........ I I::> or l.O II aL.. I I """,~ .• l ... o'ur,'ng s r'!·e -

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unde~~~::.J:;:::

min ing operations.

The ::3: :::: :8naucting th e inven7~)' : rre:J?r i n~ rcnc;;.:s. ?nd C8r rying out m.it i :;::.:~~ ~7e.SIJ~eS sha !! =e :::~e cy :1e Lessee. Stipuiation =2.

If there ·s

~eason tJ believe that Threatened

of

En~an~ere.j

(T&E) species of

c : c~:s or 2-.1:mals.

or rr. : ;~2::· ;-':· jird s:Jecies c; high Federa l ir.~ e:est C:::..1r in t~e area. the Lessee S:-:2:: be ~9'Juired to CC~:..l:~ en intE:.sive fielj inventJ::" Qf the crea t: ~· e distumed andior impacte::. ~ie i~','entory sha il :e ·: :::juctea by a a~alified s~eclalis: and a reDJ:-: C7 findings wiii be prep2~~::. ,!..., s:an will be D~e:2:ed ~aki::;: recOl.lmenda:10ns fOI :~e nro:ecti::l:l 07 these species or aCli:- :-,eces.sary to mitig2.:~ ::-:e disturbance.

./

Stipulation #3. The Lessee shall be required to perform a study to secure adequate baseline data to quantITy the existing suriace resources 0:1 and adjacent to the iease a:-ea. Existing data may be used if such data are adequate for the intended purposes. The study shall be adequate to locate, quantify, and demonstrate the interrelati:Jnship of the geology. ::~ography. surface and groundwater hydrology. vegetation and wiidltfe. Baseline data will be established so that future programs of observation can be incorporated at regu lar intervals for c::"i1pariso~.

Stipulation #4. Powerlines used i:1 conj unc~;:Jn with the mining of coal fr::7i this lease shall be constructed so as to provide adeqt;are protect:s:l 7:Jr raptors and other large birds. \Vhen feasible, powerlines will be located at least 100 yards flom public roads.

Stipulation #5. The limited area 2.'!aiiable for mine raciiit ies at the coal o:;:::::>p, steeD topography, adverse winter weather. and physical limitatIons on the size and design :: access roads. are factors which will determine the u!umate size :: ~hs suriace area utilized fer ~B mine. A site-specific environmental analysis \':ill h,:~ prepaied ::r each new mine site deve l ~:=-nent an~ for major improvements to existing deve I0pr:len!s to exarr: !:le alternatives and mitiga:e confiicts.

Stipulation #6. Consideration wi ii be given tJ site selection to red:Jce ad':e:se visuai impacts. Where alternative sites are 2'v'2!1alJls. and eacr: altemative is technicaliy fcas:~le, the alternative involving the least damage tJ tr,,:; scenery anci ether resources shall be sele::e-:L Permanent structures and facilities will be des;gncd. and sc ree~ ~ n~ techniques employej :: reduce \'isual impacts. and where rossible i1r.hievp- a fi n~1 l03n'JSC8D8 c0m.pa!ib 1t? v{!!h the :oat!..!::!! 5!...!!'T0!...!!!di!!gs. The creation 0! unusual. obJectionable . 01 Linnatural landforms and vege!2:ve lancsC@)e feat~res will be avoided.

Stipulation #7. The Lessee shali be requirelj to establish a monitoring system to locate. measure and quantify the progressive and final effects of underground mining activities en the topographic surtace, underground and suriace nyorology and vegetation. ~e monitoring system shall utilize techniques which ,,','iil orovide a c:ntinuing reco~d cf cha:1~ over tlme and an analytical method and measuremen: of 2 number ci paints over the lease 2:-ea. The monitoring shall incorporate and be an extension of the baseiine data.

Stipulation #8.



The lessee shall proviae for the suppression and contra! of 'bgitive dustLQJ~~~r .l\c~tl~ handling and storage facilities. On Forest Deveiopment R~ds (FOR), e share of road maintenance by a commensurate share agreement if a s nifi is generated that is not related to their activities.

Stipulation #9. Except at specifically apprc';ea lxations. underground mining operations shall be conducted in such a manner so as to :;~event surface subsidence that would: (1) cause t1e creation of hazardous conditions suc~ as catential escarpment failure and landslides. (2) cause damage to existing surface structures. ='10 :3) damage or alter the flow of perennial streams. The Lessee shall provide specific meas:.res tor the protection of escarpments. and detennine corrective measures to assure that r.::..:ar:l'::Js conditions are not created.

Stipulation #10. In order to avoid surface : :3t'UrDanCe on steep canyon slopes and to preclude the need for surface access, all surface :~=2KC:.ltS for ventiiation tunnels shall be constructed from inside the mine, except at specific ac;:· ~o\'ed locations.

Stipulation #11. If removal of timber is re:~:re(j i:x cleanng of construction sites. etc .. such tmber shall be removed in accordance \'.'11:1 ~~l2 reguiations of the surface management agency.

Stipulation #12.

e

The coal contained within. =.::0 aillhorizej for mining under this lease shall be extracted onty by underground mining methc::;s.

Stipulation #13. Existing Forest Service c .....·ned a:- permitted surface improvements will need to be protected, restored. or replaced to pr8'/ioe for the continuance of current land uses.

Stipulation #14.

1:1 order to protect big-ga~e ~''';:'1:enng areas. elk calving and deer fawning areas. sage grouse strutting areas. and other ~::::y ·.... iidlife habitat andior activities. specific surface uses outside the mine development area may be curtailed during specified periods of the year. Stipulation #15. Support facilities. structures. e:J~lpment. and similar developments will be removed tom the lease area within two years after ~e fi~KiI termination of use of such faciirnes. This provision shall apply unless the requirement of Sect~:1 10 of the lease forms is applicable. Disturbed areas and tho areas previously occupied by such facilities \vill be stabilized and rehabir at ~ !~ I"~., .... ~t9 reestablished, and the areas returned to a pre-mining use. lWC()R\P("~\1V~: >.: .

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Stioulation #16. The Lessee. at the conclusion of the mining operation, or at other times as su:iace disturbance related to mining may occur. will replace all damaged, disturbed or displace-:J ~mer monuments (section comers. 1/4 corners etc.). their accessories and appendages (viimess trees. bearing trees. etc.). or restore them to their original condition and location. or at othe~ ixations that meet requirements of the rectangular surveying system. This work shall be conaucted at the expense of the Lessee. by a professional land surveyor registered in the State ~f Utah. and to the standards and guidelines found in the Manual of Surveying InstructiJns. Unrtea S~tes Department of the Interior.

Stipulation #17. The Lessees. at their expense. will be res:Jonsible to replace any surface wa7er and/or developed ground-water source identified f8r protec:IJn. that may be lost or adverseiy affected by mining operations, with water from an alterna:e source in sufficient quantity and quality to maintain existing riparian habitat, fishery habitat. :: vestock and wildlife use, or other i ~d uses (authorized by 36 CFR 251).

Stipulation #18.

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STIPULATION FOR LANeS OF THE NATIONAL FOREST SYSTEM UNO£:::1 JURISDICTION OF THE DEPARTI,,1ENT OF AGRICULTURE

The iicensee:permittee/lessee must

co~:;:y with all the rules and regulations of !he Secretary of

Agriculture set forth at Title 36. Chapter II. of the Code of Federal ReguJatio~s governing the use and management of the National Forest System (NFS) when not inconsistent with the rights granted by the Secretary of the Interior i~ the iicensejpermit~ease. The Secre:ary of Ag;iculture's n.Ii~5 8n rj r~gulations must be c0~p!!etj with far (1) all use and occL!par.cy (;f t~e NFS pri~r !~ ap~rovai of a permit/operation pian ty the Secretary of the Interior. (2) ~ses of all existing ir:1:Jrovements. such as Forest Deveic::~ent F.oads. within and cutsiae I:--:8 area iicensed. permitted or leased by the Secretary 0; ~ne Interior. and (3) use and occu~ancy of the NFS not authorized by a permit/operating plan a:;Jrcved by the SecretalY of the Imsrio!'".

All matters related to this stipulation are to be addressed to: r=:)~est Supervisor Mant-LaSal National Forest 599 Viest Price River Drive Price. Utah 84501 Telepnone: 435-637-2817

Stipulation #19. ABANDONMENT OF EQUIPMENT: The lessee.:oper2:or is responsible tor comp;:ance and reporting regarding toxic and hazardous material and sub.s:ances under Federal Law and ail associated amendments and regulations for the handling of s~:h materials on the land s:.;~ace and in underground mine workings The lessee.'oper3.:Qr must remove mine ec=u:pment and materials not needed for continued operations. roof SJpport and mine safety tr:m underground workings prior to abandonment of mine sections. Exceptions can be approved ty the Authorized Officer (BLM) in consultation with the suriace manc.~ement agency. Any on-s:~e djsposal of non-coal waste must c:)mply with 30 CFR § 817.89 an: must be approved by the regulatory authority responsible for the enforcement of the Suriace f\r~ing Control and Reclam3.!iGn Act (30 U.S.C. 1201, et seq.). Creation of a situation that wou:d prevent removal of such material and equipment by retreat or abandonment of mine sections \'.ithout prior authorization wouid be considered noncompliance with lease terms and conditions anj subject to appropriate pe!lalties under the lease. All safe and accessible areas shall be inspec:ed prior to being sealed. The lessee shall notify the Autho:ized 05cer in \'/riting 30 days DriD!" to the sealing of any areas in the mine and state the reas:~ for cics:.Jre. Priaf to sea!.s being ;::.;: into piace. the lessee shall inspec: the area and certify hrough do:~mentation any eJuipment"~achinery, hazardous substances, anj used oil that is intencied to be : ~ft underground. 1.1e Aut.n:~:zed Officer may participate in this inspection. The purpose DT this ir,soection will be: (1) to prc..~je documentation for compliance with 42 U.S.C. 9620 section 120 : h) and State Managemen: Ruie R-315-15, and to assure that certification will be meaningful at :.~e time of lease relinquis:J:-71ent. (2) to document the inspection with a mine map ShD\';ing 10c3.:!Dn of equipmenrmachinery (,model. type of fluid. amount remaining, batteries etc.) tha~ is prapc3~.j to be left unjerground. ::--, addition, these items will be photographed at the lessee's expense and shall be submitted to t:e Authorized Officer as part of the certification. WASTE CeRTIFICATION: The lessee shall :~ovide on a year:y basis a~: Drior to lease relinquishment. certification to the lessor :~3t. base: :J:Jon a coma!ete search :; all the operator's records for the mine and u~on their kno'.':iedge C7 :Jast operatiJJ;s. there nas :een no hazardous substances defined as per (40 CFR 302.'::) or uss-j oil as per Utah State MaG2;ement Rule R-315-15. deposited wilhin the lease, either on the surface or underground. or that ail remedial action necessary has been taken to protect h~rr.an he2th and the environment with respect to any such substances remaining on the property. The baDe-Up documentation to be pr~vided shall be descnbed by the less Dr prior to the first cenif:cation a;-:j shall inciude all doCUme:1:3tion appiicable to the Emergency Planning and Community Righ:-t0-know Act (EPCRAL =ublic Law 99-499), Title III of the Superfund Amendments and Reauthorization Act of 1986 or equivalent.

Stipulation #20.

The parties recc~n i ze that under en approved R2P2. cond i:j:)~s may require a IT. ~::.. : . . : :1 rJy t"ie operator/l essee of t~at plan . 1:1 the event a coal bed or p:)rtion thereof is not to :s ;;lInea or is rendered unmlnab!e by the operation. the ooerator shall su:)mit aD:;ropriate justific2: ; J~, :J obtain approval by the Authorized O:i;cer to leave such reserves unmined. Upon a~:' ~ '3.1 by tie Authorized Officer. such coa l teds or portions thereof shall not be subject tc : ::-:1 ages as described abo\·e. :=~:1her. nOlhi:lg in this sect:on shall preV8:lt the c:::erator/lesse€ frCrii exerC!Sing its right to reiinQuis!i all or a p:~ion cf the lease as autho~zed by statute and reg~ ::-:~ . In. In the event the AUl.~~rized 07fic:er determines that the R2P2 as aC;Jroved will not c::::'in MER as the result of chan~ed conditions. the Authorized Officer will give proper notIce to the operator:lessee as rsquired u:-;jer applica~!e regulations. The Au!horized Offjce~ ..i1 order a modification if necessary. ide:.ti~,'ing adjitional reserves ::: be l'"I, ;ned in order t: ::. ··. 3in MER. Upon a fi nal aJm:n:s!:'"ative 0;- j ~: i c:ial ruling upholding such an ordered modification. any reserves left unminea (wast~j) under ::--; ~ plan will be subject to damages as describe·: .- the first paragraph unoer ~~:s section . Subjec~ to the ~;;ht :: appea r :-:ereinafter set torth. paymerl: of ths value of the royalty 0:1 such unmine.j reco\'eras:e coal reserves shall become due and oayab:e upon determi:1c.~ion by the Author;ze·j 07fIcer t:--.:it the Ct.)2 i reserves have been rendered unminabie or at such tIme mat me lessee :'2.S Ge~:~s::"ated ail '''';:-:\','iiii ngness to extract the c:al.

-ro,r ....... -c ·n ' - ; on e,"h -n o'ec'~-vmen· ",; ~e T 'ne '-;::. L' ,i " , ,,.......-\. I! c::. . ::;: l · I'S r~""''' r-' l er .,v v , l·ssu·lng • a v'n· , I... ~ l t:: •~ .;"'n ~ • requI·n·"'o r-' a. " tv, li I MMS deman:: :::" s:;ch royalties. Jr by issuing a notice of n:)n-con;:i:ance. A decision or notice of non-cc:noiiar.:e :ssued by t;-Ie iessor ~h3t payment is d:Je under :~is stipuiation is appeaiable as al iowed t~; i2\·.·. J I ......"

...., "'"

I ..." •

• .::: ;

I I -'

United States Department of the Interior BUREAU OF LAND MANAGEMENT

TAKE PR1DE " INAMERJCA

Utah State Oflice P.O. Box 45155 Salt Lake City, UT 84145-0155 http://www.blm.gov IN REPLY REFER TO:

3452 UTU-76195 (UT-923)

DEC 2 0 2006

ArkJana

CERTIFIED MAIL - Return Receipt Requested

JAN 04 ?Oyj DECISION Canyon Fuel Company. LLC c/o Ark Land Company City Place One, Suite 300 St. Louis, Missouri 63141

Coal Lease UTU-76195

ReCeived INCORPORATED

MAY 2 2 2007

Partial Coal Lease Relinquishment Accepted

Div. of Oil, Gas & Mining On March 27. 2006, partial relinquishment of the above noted Federal coal lease was filed in this office by Canyon Fuel Company, LLC, the Lessee of record. A total of 1477.0 acres were requested to be relinquished, and 5,694.66 acres would remain under lease. No mining has occurred within this portion of the lease, and a modification to the Resource Recovery and Protection Plan (R2P2) for this lease was signed November 17, 2006, eliminating plans to mine this area. After reviewing the administrative record for this lease, BLM will accept the partial relinquishment requested. In accordance with 43 CFR 3452.1-3, the relinquished lands described below are hereby accepted as of March 27, 2006. BLM has detennined that this relinquishment is in the public interest. that the accrued rentals and royalties have been paid, and that all obligations of the lessee under the regulations and the tenns of the leases have been met. The relinquished lands are subject to any reclamation actions deemed necessary under the requirements of the SMCRA permit. Application for refund of excess rental paid after the acceptance date should be made directly to the Minerals Management Service, Solid Minerals Staff. MS390B2, Box 25165, Denver, CO 80225. The lessee is obligated to resolve any discrepancies in payments to MMS that may be identified subsequent to this decision. The relinquished and retained lands are described as follows: Coal lease UTU-76195: Relinquished Lands T. 20 S., R. 5 E., SLM Sec. 35, S2NE, SENW, NESW, S2SW, SE; Sec. 36, W2SW, SESW.

T. 21 S., R. 5 E., SLM Sec. I, lots 3, 4, S2SW, SWSE; Sec. 2, lots 1, 2, SESE; Sec. 12, NE, NW, NESW, SE;

Retained Lands T. 21 S., R. 6 E.~ SLM Sec. \9, lots 3, 4. E2SW~ Sec. 30, lots 1-3, E2NW, NESW.

T. 21 S., R. 5 E .. SLM Sec. 2, lots 3, 4. S2SW, SWSE; Sec. 10, E2; Sec. 11, all;

Sec. 13,NE.

Sec. 12, S2SW, NWSW; Sec. 13, NW, S2; Sec. 14, all; Sec. 15, E2; Sec. 22, E2; Sec. 23, all; Sec. 24, all; Sec. 25, N2, N2S2; Sec. 26, N2, NESW, E2NWSW, SE.

Containing 1,477.00 acres more or less Sevier County, Utah

Containing 5,694.66 acres more or less Sevier & Emery Counties, Utah

This decision may be appealed to the Interior Board of Land Appeals, Office of the Secretary, in accordance with the regulations contained in 43 CFR, Part 4, and the enclosed Form 1842-1. If an appeal is taken, your notice of appeal must be fi led in this office (at the above address) within 30 days from receipt of this decision. The appellant has the burden of showing that the decisjon appealed from is in error. If you wish to file a petition (pursuant to regulation 43 CFR 4.21 )(58 FR 4939, January 19, 1993) (request) for a stay (suspension) of the effectiveness of this decision during the time that your appeal is being reviewed by the Board, the petition for a stay must accompany your notice of appeal. A petition for a stay is required to show sufficient justification based on the standards listed below. Copies of the notice of appeal and petition for a stay must also be submitted to each party named in this decision and to the Interior Board of Land Appeals and to the appropriate Office of the Solicitor (see 43 CFR 4.4] 3) at the same time the original documents are filed in this office. If you request a stay, you have the burden of proof to demonstrate that a stay should be granted. Standards for Obtaining a Stay Except as otherwise provided by law or other pertinent regulation, a petition for a stay of a decision pending appeal shall show sufficient justification based on the following standards: (1) (2) (3) (4)

The relative harm to the parties if the stay is granted or denied, The 1ikelihood of the appellant's success on the merits, The likelihood of immediate and irreparable harm if the stay is granted. and Whether the public interest favors granting the stay.

If you have further questions call Bill Buge at (801) 539-4086.

Kent Hoffman Deputy State Director Lands and Minerals Enclosure 1. Form 1842-1

INCORPORATED

MAY 2 2 2007 Div. of Oil, Gas &Mining

cc : Resource Development Coordinating Committee, ATTN: Mineral Leasing Taskforce, 116 State Capital Building, Salt Lake City, Utah 84114 MMS, MRM, Solid Minerals Staff, Attn: Patrick Mulcahy, MS390B2, Box 25165, Denver, CO 80225·0165 Ms. Mary Ann Wright, Associate Director, Mining, UDOGM, P.O. Box 145801, Salt Lake City, Utah 84114-5801 Ms. Alice Carlton, Forest Supervisor, Manti La Sal National Forest, 599 West Price River Drive, Price, Utah 84501 Price Field Office (Attn: Steve Rigby)

INCORPORl~.T~~

MAY 2 2 2007 Div. of Oil, Gas & Mining

UNITED STATES

·Fohn 1842-1 (September 2005)

DEPARTMENT OF THE INTERIOR BUREAU OF LAND MANAGEMENT

INFORMATION ON TAKING APPEALS TO THE INTERIOR BOARD OF LAND APPEALS DO NOT APPEAL UNLESS 1. This decision is adverse to you.

AND 2. You believe it is incorrect

IF YOU APPEAL, mE FOLLOWING PROCEDURES MUST BE FOLLOWED I. NOTlCEOF

APPEAL..._.... w_ •••

l. WHERE TO FILE NOTICE OF APPEAL.._ ....... _.-

WIllI copy TO SOLlCITOIL 3. STATEMENT OF REASONS

WITH COpy TO

SOUCrrOR. ............... _.. ·.·····.. ··

A penoo served with the decisico beiDa appealed mwt InIDIIDit the aotice of appeal iD time for it to be fiIaI ia cbe oftice wbcrc it is required to be filed widUn 30 days after the d.te of service. If. dcciaioa iii publisbcd u. Ibc FEDERAL REOISl'ER, a pcnoIl DOt served widl die ckcisioo must tnDstnit a notice of appeAl ill time fer it II) be filed wIthiu 30 Uys aftu the 11m ofpublic:aticG (43 CFJt 4.41 1 md 4.413).

Bwcau ofLaad Maoqcmeat. UI3h Slate Office, P. O. Box 4S1SS. SallL.akc City. Ulall 84145-0151 Qt . 8wau 01 Laud M.ma&cman. Utah Slate 0fficIc., 440 West 200 Soudl, Suire 500. Salt Lake City, UIab 14101 aad

JtqicaaI Solicicor, Room 6201, ) 25 South $"* Street. Salt Late Cit)'. U1aII 84111 W'rtbiD 30 days u= film& the Notice of Appeal. file. compJctc sQtcmeAt ofdlc rcuoaa why you aR ~iD.. Thia must be filed with the UDiIicid Stata DepartmcZJl of the Iutmor. Office of Hnrinp aDd Appeals. latcrior Bo.rd a( Lad Appc:ab. SOl N. QuiDq Street. MS loo-QC. ArliDJtOD. Virgillia 22201. If you fully Jtatr:d yOUI' rasoas jQr appcaliDc wbaa filiDa die Notice of Appeal, DO additiGoaJ stalaDCat as ~cssary (43 CFR 4.4) 2 aod 4.413).

aad Rqioaa! SoliciUlr', Room 6201. 125 South Stare Stn:et, SalII...ak.c City. UCoib 8411 J

4. ADVERSE PARTIES.............···.

WitbiD 1S dayI after each documcm is filed, each advcrIc JIIIIfY oamccl ia !be ciccisioa md the R.epooaJ Solicitor oc FWd Solicitor' haviD, j\IriIdic:Ucm aver the State ill wbkh tile appeal arose: must be served wilb a copy of (a) the Notiec of Appeal, (b) the s~ of buoa.s, mel (c) arq otbct ~ filed (43 O'R 4.413). If tbe dcc:iaioa CU&CCIDI the UK aod dispositioD of pahIic laack, iDcNdio,lmd ~tiou.s UDIkr the Alub Native C1aima ScuJemcat Act., • ~ KIVice wiD be m.dc upoa the Auociamd SolicilDr. Divi5iaa of Laud _ W&tt% Rcsoun:el. Office of the Sotic:iIcr. U.s. Depwaam of the Intc::riOC', W~ D.C. 20240. If 11K dcc:isico aJDCaDS the IlSe aDd disposiaiotG 01 miocnJ ~ service will made upOIl Cbc AsIoc:ia~ Solicitor, DivisiOQ of MiDcraI Rc:soun:cs. Offi

I nu

11

I

UU MIl

l-AX NUl

P. 04

_. panels is not recoverable. The environmental effects of the modification were analyzed in a Detennination ofNEPA Adequ:tcy (DNA) document dated July'31;2003.

Reserves: There is a change in reserves of approximately 180,600 tons due to geologic factors offset by mining underneath the East Fork of Box Canyon for this modification:

R2P2 effect on coa] reserves with changes to 3LPE and 4LPE panels

3LPE

Original

South

3LPE

Block

Stream Block

4LPE

4LPE Stream

Block

8,629,800

0

-876,400

6,163,000

0

.70AOO

5~960,900

665,399

939,900

6,163,000

438.000

0

PJan NewP1an

Muddy Creek Break out

Total

13,986~800

·14,167,199

Difference



180,600

Conditions of Approval: 1. Pull extraction under the perennial stream in the East Fork of Box Canyon is not authorized until a pennit revisjon is approved by the Utah Division of Oil, Gas, and Mining as provided jn 30 CPR 944.3 AnicJe VI D. In order to be consistent with the tenns and conditions of federal coal lease UTU-7619S, this approval must incorporate appropriate monitoring requirements and implementation of a mitigation plan to nrininuze impacts to the perennial stream jn the East Fork of Box Canyon in accordance with the provisions of SMCRA. 2. Before initiating ]ongwall Inining under the perennial stream in the East Fork of Box Canyon, the company must submit to BLM and receive approval for a plan outlining the steps to be taken and timing to ensure that the JongwalJ mines the area under the stream with minimal interruptions in longwall face advance.

3. Following completion of mining under the East Fork of Box Canyon, the company must provide BLM copies of monitoring and mitigation repons required under rhe provisions of SMCRA.



4. Within 90 days after approvaJ of the modification, the company must submit a modification request to address mining the o]ock(s) of coal north of or inhy the sand channel or provide justification why it cannot be economically mined.

DIVOF OIL GAS & MINING

FAX NO.

P. 05

MER and Mineral Lease Act Analysis:

our

Based on analysis of the North (or inby) Block being uneconomic to mine from 3LPE or 4LPE ]ongwall panels, and with the conditions of approval as stated, we determine that this moclific3rion achieves Maximum Economic Recovery and meets the regulations at 43 CPR 3480 and the Mineral Leasing Act of 1920 as amended, and is consistent With the lenns of federal coal lease UTU-7619S. For further infoIDl8tion, please contact George Tetrault (435) 636-3604 or Stan Perkes at (801) 539-4036. . Sincerely,

~!~~

Chief, SoHds Minerals Branch

Enclosures I ..Map 1 (1 pg)





bee: UT-070, Gtetreau1t:sa: 05113/03 SUFCOlPinestract\LinkCanyon

If\lCCj;Fi

DIV OF OIL GAS & MINING

..-.



SUFCOMINE Keg

Keg

Approval

Under mining at

East Fodc of Box Canyon 3rd and «h Left lDngwaU~

SOIIIh IIIoc*

m U;

KEY

r--

:)

.:l

lba"--"".·····~

Sand Channel

.

~b

o

'"

\:..,.:-

(.

Q ".

(/)

~

"

.~

tr,'];

Perennial S\IUm\



----------



_

--------------------------------.

Worksheet Documentation of Land Use Plan Conformance and NEPA Adequacy (DNA) U.S. Department of the Interior Bureau of Land Management (BLM)

Note: This worksheet is to be completed consistent with the policies stated in the Instruction Memorandum entitled "Documentation of Land Use Plan Confonnance and National Environmental Policy Act (NEPA) Adequacy" transmitting this worksheet and the "Guidelines for Using the DNA Worksheet" located at the end of the worksheet. (Note: The signed CONCLUSION at the end of this worksheet is part of an interim step in the BLM's internal analysis process and does not constitute an appealable decision.) A. BLl\1 Office: USO, Solids Minerals Group B. Lease/Serial/Case Fi1e No. Federal Coal Lease UTU-76195

Proposed Action Title/Type: Minor Modification to an approved Resource Recovery and Protection Plan to ful1y extract coal underneath a 143.25 acre portion of the East Fork of Box Canyon Creek Drainage.



Location of Proposed Action: East Fork of Box Canyon, Sevier County Utah Description of the Proposed Action: Canyon Fuel LLC, and Southern Utah Fuel Company (SUFCO) have submitted a minor modification to the Resource and Recovery and Protection Plan (R2P2) that inc1udes a proposal to fu11y extract coal in three mine panels from one seam underneath a 143.25 acre portion of the East Fork of Box Canyon Creek Drainage in Sevier County Utah. The East Fork of Box Canyon contains a stream that is perennial across the first panel and partially into the second panel. The second panel would also subside a portion of the East Fork of Box Canyon that does not contain a perennial stream. The Forest Service has identified this area as a "perennial1y functioning" drainage and have indicated their desire to protect it from potential impacts of full extraction mining. The third panel would subside two stock ponds known as the Joes Mills ponds. Because of changes in the mining plan, the proposal would increase coal recovery by approximately 3-4 Million tons of federal coal. Such a change is nonnally considered as a minor modification to an existing mining plan and categorically exc1uded under BLM's NEPA policy (BLM Categorical Exc1usions, 516DM Chapter 6, Appendix 5.4 F.(8)).



In the original R2P2, the company did not plan on full-extraction mining under the drainage in the East Fork of Box Canyon. However, due to unanticipated geologic conditions, they have requested approval to subside these areas. In the record of decision consenting to leasing the lands in question, the Forest Supervisor of the Manti-La Sa] National Forest provided the following:

DIV OF Oil GAS & MINING

ATTACHMENT 1-6

e-

1 consent to the ELM leasing the Pines Coal Lease Tract. My consent is conditioned on inclusion o/stipulations derived in part/rom the Forest Plan, as detailed in Appendix D of the FEIS, and upon ensuring that subsequent mining will meet the performance standards o/the applicable mining regulations. Specific terms and conditions o/my consent are given in items 1 and 2 below. 1. For the perennial streanlS in Box Canyon and The East Fork 0/ Box Canyon, Alternative C is the selected alternative. Stipulation 9 from the Forest Plan will be implemented, thus these streams l'vill be protected/rom mining that would cause subsidence. Lease Stipulation 9, that was forwarded by the Forest Service in their consent to the lease included language that a110ws the stream to be undermined under certain conditions. Stipulation 9. Except at specifically approved locations, underground mining operations shaH be conducted in such a manner so as to prevent surface subsidence that would: (1) cause the creation of hazardous conditions such as potential escarpment failure and landslides, (2) cause damage to existing surface structures, or (3) damage or alter the flow ofpereJll1ial streams. The Lessee shall provide specific measures for the protection of escarpments, and determine corrective measures to assure that hazardous conditions are not created.



This stipulation requires specific approval before any subsidence could occur that would damage or alter the flow of perennial streams. However; no further approval would be required if the mining would not damage or alter the flow of the stream. This DNA is heing prepared to determine whether any impacts mining may cause due to the full extraction of the coal resource in this small area have been adequately analyzed in the existing NEPA documents. The proposed action does not present environmental concerns that have not been addressed previously, in the leasing EIS.

A pplicant (if any): Canyon Fuel Company, Skyline Mine

B. Confornlance with the Land Use Plan (LUP) and Consistency "'ith Related Subordinate Jnlplementation Plans LUP Name Land and Resource Management Plan, Manti-La Sal National Forest, (] 986) (Forest Plan). Date Approved . November] 986 Other document *List applicable LUPs (e.g., Resource Management Plans or app1icable amendments). Forest Plan, Page 111-72 "Avoid and mitigate detrimental disturbance to riparian area by mineral activities. Initiate timely and effective rehabiHtation of disturbed sites."

-.

Forest Plan Forest-wide Management Direction for Riparian, Flood Plain & Wetlands Management Page 111-3 1,02 "Give preferential consideration to riparian area dependent resources in cases of

INC()RPC;RATED

SEP 3 0 2003 DIV OF OIL Gt"S g Mlr"IING

2.

ATIACHMENT 1-6

-e-

irresolvable resource conflicts" Page III-22, 08 '"Manage ,vaters capable of supporting self-sustaining fish populations to provide for those populations". Page III-36,Ol ,d,(5) "Coal leases may be denied or limited by special stipulations where operations would result in unacceptable or immitigable impact on wildlife or fisheries" and "Proposed management activities which may cause unfavorable conditions in existing fisheries will include mitigation measures." Forest Plan Forest-wide Management Direction for Minerals Management Leasables Page III-35,O 1 "negative recommendations, denials, or consent for leasing, permitting, or licensing will be based on site-specific environmental assessments using appropriate standards and guidelines. StipUlations for these actions should minimize andlor mitigate effects or conflicts with other resource uses and should return disturbed lands to conditions compatible with the emphasis of the management unit or adjacent management unit. The Forest Plan Maps indicate that the management emphasis for the area in question is range and timber. **List applicable activity, project, management, water quality restoration, or program plans.

o The proposed action is in confonnance with the applicable LUPs because it is specifically provided for in the following LUP decisions:

e

Riparian Area Direction: Minerals - Avoid and mitigate detrimental disturbance to the riparian area by mineral activities. Initiate timely and effective rehabilitation of disturbed sites. Where possible, locate mineral activities outside the riparian unit. Range Direction: Minerals - Provide appropriate mitigation measures to assure continued livestock access and use. Timber Direction: Minerals - No specific direction is given. General Big Game Winter Range: Minerals - Modify, delay, or deny mineral leasing, exploration, and/or surface occupancy, where applicable, if they cause unacceptable stress on big game or unmitigated damag~ to their habitat.

c. Identify the applicable NEPA document(s) and other related documents that cover the proposed action. List by name and date all applicable NEPA documents that cover the proposed action.

The Pines Tract Project Final Environmental Impact Statement (FEIS), US Forest Service and BLM, January 1999.

-e

Record of Decision, Pines Tract Project, US Forest Service, January 1999 Record of Decision, Pines Tract Project, Bureau of Land Management, February 1999

INCORPOHfJ..TED

3 ATTACHMENT 1-6

-.

Fluid Flow Characterization of the Castle Gate Sandstone, Southern Wasatch Plateau, Utah; Interpretation of Reservoir Partitioning Through Penneability and Porosity Analysis, Brian J. Black, Masters Thesis, Brigham Young University, December 2000 Probable Hydrologic Consequences of Longwall Mining of the 3 Left Panel Modification Area at the SUFCO Mine, Petersen Hydrologic, Erik C. Petersen P.G., and Kelly L. Payne P.G., April, 2003 3 Left Pines East Stream Buffer Subsidence Proposal, Canyon Fuel Company L.L.C., April 2003 Site Visit to the East Fork of Box Canyon, Letter, Erik C. Petersen, May 2003 National Register of Historic Places MOO Agreement No. 00-MU-11 041 000-017, dated May 2000

D. NEPA Adequacy Criteria 1. Is the current proposed action substantia))y the same action (or is a part of that action) as previously analyzed?





Documentation of answer and explanation: YES The proposed action of mining under the East Fork of Box Canyon was analyzed in the Final Environmental Impact Statement for the Pines Tract Project. The issue is undermining and subsiding the perennial and "perennia11y functioning" (ephemeral) portions of the East Fork of Box Canyon. The issue is subsidence of the East Fork of Box Canyon creek. In the first rd ]ongwall pane1 (3 Left) the stream is mainly in the Blackhawk formation and is perennial for the entire length of the pane1. In the second panel the stream is in the Castle Gate fonnation and is

DIV OF Oil G~'IS & MINING

4 ATTACHMENT 1-6

-e

e

]\1ap 1 Project Area Geology

only perennial for a smal1 portion of the drainage length. In the third 10ngwal1 panel only has two smal1 stock ponds in the area. 'When an area is subsided, two types of surface cracks can occur. Transient cracks that form paranel to the ]ongwal1 face and cracks that form perpendicular to the longwall face over the gateroads. Both types of cracks are relatively shal10w surface features and have been observed in the field to extend to depths of generaJ1y Jess than 30 feet. The limited cracks that occur in the bottom of drainages appear to close relatively quickly and fin up with sediment and other debris. Cracks that occur in the bottom of the streams could temporarily interrupt streamflow, but flow would resume once the cracks have fi])ed with water or organic material. If this natural mitigation does not occur in a timely fashion, then the the stream flow could be restored sooner by placing material in the stream channel. The FEIS discussed this issue at great length and addressed potential impacts and mitigation as fol1ows: "However, clays in the Blackhawk Fonnation shales and mudstones swel1 when wetted and anneal mininginduced fractures. Thus, the downward migration of ground waters is naturally mitigated. This occurrence is suggested by the fact that the discharge from mined-out longwall areas in the SUFCO Mine and other Wasatch Plateau mines consistently decrease with time. (FEIS page 3-45). Mayo and Associates (1997b) conclude that if tension fractures occur in the Castlegate Sandstone in the bottom of the canyons, streamflow and water from colluvial groundwater systems may be temporarily diverted into the bedrock underlying the canyon. Once fracturesfill with sediments and water, movement of water in the fracture wiI1 be essential1y static and streamflow and colluvial ground water systems would no longer be directly affected. It is not expected that tension cracks will extend downward into the 5

Sf? 3 U20D3 DIV OF OIL GAS & MINING

AITACHMENT 1-6

Blackhawk formation (FEIS, Page 3-48).

-eo

e

Tension cracks are possible in the upper Blackhawk Fonnation. Because the fonnalion consists of interbedded shale, mudstone, and sandstone layers, tension cracking should be less severe in the Blackhawk Fonnalion than in the Casdegate Sandston~. If tension cracks fonn, they will most likely fonn in the sandstone horizons ofthe fonnation. Shale layers have the ability to translate stress laterally and should not experience tension cracks, and may help, to some degree, mitigate tension crack formation in th.e sandstones. The consequence of tension cracks in the Blackhawk Fonnation is the possible diversion of streamflow into sandstone horizons. Because the East Fork of Box Canyon is a natural ground water discharge location, it is possible that the sandstone horizons that are exposed in East Fork Box Canyon area saturated and would not accommodate significant quantities of surface water. The thickness of sandstone channels in the upper Blackhawk Fonnation is about 50 feet (Marleyet aI., 1979) What this means is that the maximum vertical distance that water could travel is 50 feet. Any intercepted water would then likely be translated horizontally down gradient, which in East Box Canyon is also down stream so the discharge would occur where the bottom the of sandstone channel outcrops in the stream channel (FEIS page 3-55). This environmental analysis has shown that direct impacts to groundwater resources resulting from underground coal mining in the Project Area would be negligible. However, Under Alternative Band Alternative D, there is a potential for diversion of some surface water from pererutial streams into bedrock. This impact is expected to be of short temporal duration, perhaps less than a year, but could last up to 2 years (FEIS, Page 3-48). Therefore, depending upon the location, season, duration and extent, both temporary and pennanent tension cracking within the upper reaches of East Fork could affect its flows. The exact magnitude and duration of the effects depends upon various factors, at least some of which are not predictable or quantifiable (Mayo and Associates 1997b). However, given the assumptions cited above on crack width and healing rate, these effects would be estimated to generally and typicalIy limited to less than a six-month period forthe temporary, transient wave type of cracks. Given the typical tension crack widths and time for initiation projected by Agapito (1997) and a typical average healing rate cited by Dimick (1991), even flow disruptions caused by the more pennanent cracking would have the potential to cease within 1 year after undennining, but may take up to 2 years. Ahhough experience indicates that the cracks are likely to either self-close or be filled over time with sediments/debris, a low potential exists for penn anent cracking that either does not infill, or takes much longer to do so than has been observed elsewhere. This potential may be Jow given; the narrowness of the predicted crack widths (intuitively, the sma]]er the crack width, the more easily it can be filled with available material and the Jess likely it is to extend for great depths); the noted availability of sediments and organic matter (which may increase after subsidence as canyon slopes experience instability); and the hydrogeologic characteristics of the channel substrate. If the channel cracks during periods oflow flow, there is a higher probability that all flow could be intercepted as the baseflows are less than 20 gpm, and would thus remove the sediment transport source. Additionally, at low or base flow periods, the creek carries minimal sediment that would be available for fracture filJing. Cracks may also form in series, where numerouS cracks develop over an area. This also presents a higher risk to intercepting stream flow. (FEIS page 3-70).

The loss of hydrologic function of hydric soils (18.6 acres) due to aheration of the surface and shal10w groundwater flows by subsidence-induced fractures would be short tenned. Most of the fractures would be filled by natural sedimentation andlor swelling for the clays in the rock stratas, thus restoring the natural hydrologic function. The short-tenn Joss would be quick1y restored naturally and should not irreversibly affect riparian or wetland vegetation communities (FEIS page 3-89).

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The floor of East Fork Box Canyon is built up from co]]uvium that has accumulated against the face of the escarpment. The groundwater that seeps throughout the sedimentary rocks maintains a most soil condition in these colluvial deposits well above the level attributed to the creek flow. This zone, often as much as 20 feet above the creek level, supports riparian species. Therefore, the diversion of the surface flow of the perennial waters in East Fork Box Canyon would not impact these "perched" riparian zone that are

ATTACHMENT 1-6

DIV OF OIL GA.S & MINING

recharged from groundwater seeping into the canyon above the creek level (FEIS page 3-101) Monitoring of the surface flows over the life of mine would provide detection of surface water diversion of ephemeral or perennial drainages and of springs or seeps. Tension cracks that do occur in these areas which result in diversion of surface flow could be sealed with bentonite. Restoring the flow in this manner would maintain the vegetation communities associated with these water sources. Monitoring of ponds to assess mining induced damage and the repair necessary should also be implemented (FEIS page 3-190).

This issue is also addressed in the Probable Hydrologic Consequences (PHC) analysis that is part of the mine pennit. The PHC states, "Based on empirical observations and rock mechanic analysis (Goodrich and Agapito, 1997), it is confidently anticipated that fractures that fonn in the stream substrate would have sma]) apertures (usually less than ~ inch) because of lateral confining pressure present in the interior of the canyon (i.e. although the rock fractures, there is little space created.) An of these findings support the idea that the stream channels could be undennined with a low probability of affecting the stream. If impacted, the impacts would be short tenn in nature and would mitigate natural1y. If natural mitigation wi]] not produce the desired condition in a timely . manner, other mitigation measures are available as stated in many place in the FEIS.

2. Is the range of alternatives analyzed in the existing NEPA document(s) appropriate with respect to the ('urrent proposed action, given current environmental concerns, interests, resource ,'alues, and circumstances? Documentation of answer and explanation: YES •

The range of alternatives analyzed in the NEPA document for the Flat Canyon FEIS include: A) No Action or No mining; B) Lease the proposed areas with Standard BLM Least Tenns and Conditions (No special lease stipulations would be attached to the lease); C) Lease the proposed areas with Standard BLM Least Terms and Conditions, and Special Coals Lease StipUlations for Protection of Non-Coal Resources (which would not a110w subsidence of escarpments and perennial drainages in the analysis area). D) Lease the proposed area with Standard BLM lease Tenns and Conditions and Special Coal Lease StipUlations for Protection of Non-Coal Resources, al10wing subsidence of perennial drainages and escarpments in the analysis area. (Pine Tract Project FEIS, USFS and BLM, Jan 1999). A combination of alternatives C and D were selected by the Forest Service in consenting to the issuance of the coal lease and the lease was issued with the stipulations they identified. The range of alternatives that incJuded an analysis of the effects of subsiding the streams adequately covered the proposed action.



3. ]s the existing analysis adequate and are the concJusions adequate in Ught of any new infornlation or circumstance!lincluding, for exanlple, riparian proper functioning condition IPFC] reports; rangeland health standards assessments; Unified Watershed Assessnlent categorizations; inventory and monitoring data; most recent Fish and Wildlife Service lists of threatened, endangered, proposed, and candidate species; most recent BLM lists of sensitive species)? Can you reasonably conclude that all new information and all ne,,' circumstances are insignificant '''ith regard to analysis of the proposed action? 7 AITACHMENT 1-6

DIV OF OIL GAS & MINING

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Documentation of answer and explanation: YES The publication of the Pines Tract Project FEIS is current, (January 1999). Observations made during subsidence of the Main Fork of Box Canyon which is adjacent to the East Fork of Box Canyon substantiate the analysis in the FEIS with regards to subsidence cracks. The FEIS is further supplemented by Probable Hydrologic Consequences (PHC) report that is part of the mine pennit. Observations from the subsided areas above the SUFCO mine (Mayo and Associates 1997a, 1997b) suggest that the sma11-aperture cracks that do form in the channel substrate will be "deadend" fractures that will Jikely fiJI in with sediment rapidly (within a few weeks). Observations also suggest that these tension cracks do no extend below the surface more that a few tens of feet. Field observations in East Fork indicate that the stream in the 3 Left panel modification area visibly transports sandy and silty sediment that would readily fill any tension cracks that would form. Additional1y, the presence of swe11ing clays in the Blackhawk Formation would readily seal tension fracture to heal to prevent water transmittal from the surface to deeper horizons (PHC, p. 17-18).



Subsequent to the FEIS, part of the project area, including portions of the East Fork of Box Canyon, were identified as possible habitat for the Mexican spotted owl Historically, the Mexican spotted owl (MSO) ranged from southern Mexico to the Colorado Plateau in southern Utah. Very few owls are found in the canyonlands area as compared to forested sites in Arizona and New Mexico. The project area is not in the Critical Habitat area as designated by the United State Fish and Wild1ife Service (FWS). DeGraaf, [and others], 1991, indicated that," In the Southwest, spotted owls are commonly found in forested mountain tablelands and canyons from 5,500 to 9,000 feet(1,676~2,743 m)". The project area ranges from 8000 to 8400 feet and is therefore in the upper elevations of the species range. Impacts to raptors including Bald Eagle, Northern Goshawk, Peregrine Falcon, and the Flammulated Owl were analyzed in the FEIS for the Pines Tract Project. The FEIS determined that an impact to the surface hydrology which might reduce the riparian area, could, reduce foraging habitat for these species. Escarpment issues were discussed in the FEIS. The Recovery plan for the MSO states that "owls occur primarily in steep~wal1ed, rocky canyons". The FEIS (p 3-17) states," These combined factors [convex~shaped, shallower canyon and exposure] suggest that cliffs in Box Canyon and the East Fork of Box Canyon [interior cliffs] should be less susceptible to mining~induced instability compared with the observations made during test mining in Quitchupah Canyon [exterior cliffs]". Underground mining has occurred under the ephemeral portion of the Main Fork of Box Canyon. There were approximately 3 escarpment failures in the entire area covering approximately 6000 linear feet of escarpment. This equates to approximately 3% of the linear c1iffface that was affected. Therefore the statements in the FElS are substantiated because of the smal1 amount of c1ifffailure that would be encountered. Even if owls are present, the probability of an owl nest being affected by subsidence would be minima1. Surveys are being conducted in the project area and in potential habitat areas that are in a 2 mile radius of the "Muddy" coal tract. To date no owls have been found. MSO generally utilize the same territory year after year. Mining is proposed take place between mid September and the end of December. The nesting season for the MSO is from March through August. The mining period for the first panel to be undennined would be outside of the nesting period and would not interfere with nesting. The surface over the remaining panels will have been fully surveyed by the time mining is initiated. The FEIS relied upon historical records and a 1997 r. f· 1ir~', ;

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DIV OF OlL GAS & MINING

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• aeria1 survey for documentation of the types ofwiJdlife in the area. MSO were not reported in the survey. MSO surveys have been conducted in and around the project area according to the Fish and Wildlife Service protocol, under contract from the Manti LaSal National forest. Four surveys were conducted in 2002 and one survey has been conducted in 2003. So Jar no owls have been found. Three remaining surveys win be completed by late Aug 2003. Figure J 1\ISO 2002 and 2003 Survey Area



Because the impacts have a1ready been analyzed for raptors and disclosed to the public, and the MSO were not found in the 1997 or subsequent surveys, no additional NEPA analysis or public notification is necessary because the impacts listed in the FEIS would be the same for the MSO as other raptors. BLM infonnal1y consulted with Fish and Wildlife Service on June 30, 2003. The FWS does not oppose having the project go fonvard based on the infonnation gathered to-date on the MSO. The FWS requests that the remaining MSO surveys take place. If

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DIV OF OIL GAS & MINING

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MSO are located, then the nonnal Section 7 consultation would be initiated for protection of the species. (If a proposed Federal action may affect a listed species or designated critical habitat, fonnal consu1tation is required (except when the Senrices concur, in writing, that a proposed action His not likely to adversely affect" listed species or designated critical habitat). [50 CFR §402.02, 50 CFR §402.13]). The National Register of Historic Places requirements has been complied with under Memorandum of Agreement between the USDA-Manti-LaSal National Forest, The Utah State Historic Preservation Officer, Canyon Fuel Company L.L.C., and the Utah Division of Oil, Gas and Mining regarding the SUFCO mine (Agreement No. OO-MU-] ]04]000-017 and finally signed May 30, 2000). 4. Do the methodology and analytical approach used in the existing NEPA document(s) continue to be appropriate for the current proposed action?

Documentation of answer and explanation: YES

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.The methodology and analytical approach used in the Pines Tract Project FEIS and the other studies are the current scientific methodologies that are available for predicting impacts due to subsidence. Actual information was gathered from the mine on subsidence. The company has been using longwall techniques for over 10 years. There is no current technical analysis that could be made that would be superior or negate the findings of the FEIS or the technical studies. Both Government and private industry have reviewed the analysis techniques and all involved have accepted them. The bottom line is that the surface impacts from the action are not different than what was analyzed in the Pines Tract Project FEIS NEPA document. 5. Are the direct and indirect impacts of the current proposed action substantially unchanged from those identified in the existing NEPA document(s)? Does the existing NEPA document sufficiently analyze site-specific impacts related to the current proposed action?

Documentation of answer and explanation: YES The FEIS stated that the cracks in the stream should seal within one to two years. By sealing the cracks the creek should return to its original flow. The Probable Hydrologic Consequence (PHC) Report dated April 10, 2003 states" It should be noted that whether the 3 Left panel modification area is '



mined or not, tension fractures in the vicinity of the 3 Left panel will Jikely fonn. As currently pennitted, the longwal1 pane1 wil1 tenninated adjacent to the East Fork Creek, which wil1 create a pennanent tension zone. Open fracture willlike1y fonn at that location as well as at the location where mining of the panel is later resumed on the other side of the creek. Ifa continuous progression of the 3 Left panel occurs, subsidence effects are more unifonn and many of the anticipated open tension cracks in the vicinity of the 3 Left panel modification area will likely not fonn". "Where differential subsidence of the land surface occurs in stream drainages, there is the potential for the temporary increase of sediment yield in these drainages. This potentia] impact is primarily the result of subsidence induced gradient changes along areas of differential subsidence. However, this effect is generally expected to be short lived ..

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10 ATTACHMENT 1-6

DIV OF OIL GAS & MINING



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6. Can you conclude ,vithout additional analysis or information that the cumulative inlpacts that ,,'ould result from inlpJenlentation of the current proposed action are substantially unchanged fron} those analyzed in the existing NEPA document(s)?

Documentation of answer and explanation: YES All impacts have been addressed in the Pines Tract Project FEIS including cumulative impacts. The estimated impacts if the creek was intercepted by cracks would be short term and it was estimated that it COUld. last Up to 2 years (mitigation could dramatically shorten that time period). If not all cracks hea1ed, this would mean that the vegetation would be stressed as if it were a drought year in the place where water was intercepted. Cracks would heal and fill up with material and water as'material become available. The cracks are of limited length and depth. At the mining depth that the company is looking at the cracks will not intercept the mine workings and the water wi]] not drain into the mine. Because the rock where the cracks may form do not accept water very readily, the water wi]] sit in the cracks until flow resumes or it will be available for plant use, or it will reappear down stream.



Ground Water (FEIS p. 3-55- 3-56) Cumulative Impacts, " . . . there is a potential for diversion of some surface water from pereIll1ial streams into bedrock. This impact is expected to be of short temporal duration, perhaps less than a year, but could last up to 2 years". Residual Adverse Impacts, "No residual adverse impacts to groundwater resources overlying the mine workings are anticipated. Although under Alternative B and Alternative D there is a potential for diversion of some surface water resources into bedrock, this impact is expected to be of short tenn duration, perhaps less than a year, but could last up to 2 years". " .. IrreversiblelIrretrievable Conunitment of Resources (P-3-56) ~~ . . . No irreversible or irretrievable commitment of groundwater resources that occur nearsurface in active groundwater systems that supply base flow to perennial creeks is anticipated~. " Surface Water (FEIS p. 3-80- 3-81) ". . . Cumulative Impacts, Under Alternative Band D, changes to the flow regimes in the Main and East Fork of Box Canyon could occur if subsidence-caused tension cracks intercept flow. . . Residual Impacts, "Under alternatives Band D, the risk of continued effects of flow depletion in localized stretches of pereIll1ial streams should the predicted healing of tension cracks not occur, or bentonite repair he impossible or ineffective". Irreversible/Irretrievable Commitment of Resources (p. 3-81) "No surface water would directly be corrunitted for use in this project Soils (FEIS p 3-89) Hydrologic function of hydric soil (18.6 acres) due to alteration of the surface and shallow groundwater flows by subsidence-induce fractures would be short-termed. Most of the fracture would be fined by natural sedimentation andlor swe1ling of the cJays in the rock stratus, thus, restoring the natural hydrologic function. The short-term loss would be quickly restored naturally and should not irreversibly affect riparian or wedand vegetation communities". (P. 3-91) Cumulative Effects " ... The cumulative effect upon soil resources would be 140.5 acres of short-tenn disturbance that would be fully recJaimed, . . . Short Term Uses vs. Long Term Productivity "the mining of coal would not significantly reduce the productivity of the soils in the Project Area. "

Vegetation (FEIS p. 3-101) " . . . Approximately 18.9 acres ofwetlands/riparian areas could be affected. Impacts



would be temporary, until cracks area either naturally or artificially sealed. Depending upon the season, potential impacts are expected to be short-term, likely occurring for one growing season, but up to 2 years in some cases". . . Residual Adverse Impacts (p. 106) "No residual adverse impacts to the vegetation resource are anticipated from any of the alternative analyzed above . . . ".'4. Short Term Uses vs. LODs-Term Productity, (p 3-106) " . . . in addition, INCORPOHl\TED II AITACHMENT 1-6



a maximum of 24 acres of riparian vegetation could be impacted as a result of mining -induced ground movements . These impacts would be short-tenn (less than 2 years at a given disturbance site) and temporally distributed over the life of the mine. The sites would be reclaimed, or in the case of ground movement effects, revegated by natural means. The long-tenn productivity of the area as vegetation habitat would not be reduced".

Wildlife (P. 3-]20) The impacts to amphibians. . . Therefore, the magnitude of impacts to amphibians has potential to be grater under this alternative". Residual Adverse Impacts, (P.3-]22) " . . . No residual adverse impacts to the wildlife resources are anticipated from any of the selectable alternatives analyzed above. . . ' . ".Short Term Uses vs. LongTennProductivity (p 3-123) " . . . in addition, a maximum of24 acres of riparian vegetation could be impacted as a result of mining -induced ground movements. These impacts would be short-term (less than 2 years at a given disturbance site) and temporally distributed over the life of the mine. The sites would be reclaimed, or in the case of ground movement effects, revegated by natural means. The long-term productivity of the area as wildlife habitat would not be reduced". Special Species Status (p. 3-150) Based on hydrologic and subsidence studies, [subsidence of perennial streams] is not expected to impact species status species". Short Tenn Uses vs. Long Term Productivity, (p. 3-151) "Unless water resources are affected by subsidence, productivity of most habitats should not be affected .. ." Range Cumulative Effects, (P-3-191) the cumulative effect to the range resources within the Emery C&H Allotment consist of the residual effects from past actions, current effects from present actions, and anticipated effects from reasonably foreseeable future actions. Residual Adverse Impacts, (p 3-192) No residual adverse impacts to the range resource are anticipated from any of the selected alternatives analyzed above".





7. Are the public involvement and interagency review associated with existing NEPA document(s) adequately for the current proposed action? Documentation of answer and explanation: YES The NEPA documents addressed in this analysis had adequate public participation. It was as follows: January 29, 1998, NOI was published in the Federal Register.requesting comments. Apri114, 1998, Amended NOI was published in the Federal Register requesting comments. September 25, 1998, Draft EIS was submitted for review and Public comment. January 25, 1999, Manti-LaSal National Forest Record of Decision February 22, 1999, Utah State Office, BLM Record of Decision March 3, 1999, Fair Market Value and Environmental Dpcumentation Public Hearing

The Forest Service was requested to comment on this modification on February 27, 2003. They responded to BLM on May 8, 2003 with the following comments. The FS decision on the 1easing of the tract inc1uded a statement by the FS that, "This decision does not approve mining that wou1d cause subsidence or surface disturbance", However, the' Forest Service did consent to the modification of the lease with the stipulations thatexisted on the lease. 1) The Forest Service stated; "The proposed modification does demonstrate that a portion of the west longwall panel would subside a stream channel segment in the Blackhawk . Fonnation where the potential effects could be less than concluded in the ROD." It\jC

Title 18 U.S.C. Section 1001, makes it a crime for any person knowingly and willfully to make to any department or agency of the United States any false , fictitious or fraudulent statements or representations as to any matter within its jurisdiction.

INCORPORATED

FEB 0 1 2011 Div. of Oil, Gas &. Mining





SPECIAL STIPULATIONS FOR UTU-63214 MODIFIED COAL LEASE

1. The Regulatory Authority shall mean the State Regulatory Authority pursuant to a cooperative agreement approved under 30 CFR

PaJi 745 or in the absence ofa cooperative agreement, Office of Surface Mining. The authorized officer (AO) shall mean the State

Director, Bureau of Land Management. The AO of the Surface Management Agency shall mean the Forest Supervisor, Forest Service. Surface Management Agency for private surface is the Bureau of Land Management. For adjoining private lands with Federal minerals and which primarily involve National Forest Service issues, the Forest Service will have the lead for environmental analysis and when necessary, documentation in an environmental analysis and, when necessary, documentation in an environmental assessment or environmental impact statement. 2. The AO, of the Bureau of Land Management, Office of Surface Mining (Regulatory Authority) and the Surface Management Agency (Forest Service) respectively, shall coordinate, as practical, regulation of mining operations and associated activities on the lease area. 3. In accordance with Sec. 523 (b) of the " Surface Mining Control and Reclamation Act of 1977," surface mining and reclamation operations conducted 011 this lease are to conform with the requirements of this Act and are subject to compliance with the Office of Surface Mining Regulations, or as applicable, a Utah program equivalent approved under cooperative agreement in accordance with Sec. 523(c). the United States Government does not warrant that the entire tract will be susceptible to mining. 4. Federal Regulations 43 CFR 3400 pertaining to Coal Management make provisions for the Surface Management Agency, the surface of which is under the jurisdiction of any Federal agency other than the Department of Interior, to consent to leasing and to prescribe conditions to insure the use and protection of the lands. All or part of this lease contains lands the surface ofwhich are managed by the United States Department of Agriculture, Forest Service, Fishlake National Forest.

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he fa !lowing stipu lations pertain to the Lessee responsibi lity for mining operations on the lease area and on adjacent areas as may be specifically designated on National Forest System lands. 5. Before undertaking activities that may disturb the surface of previously undisturbed leased lands, the lessee may be required to conduct a cultural resource inventory and a paleontological appraisal ofthe areas to be disturbed. These studies shall be conducted by qualified professional cultural resource specialists or qualified paleontologists, as appropriate, and a report prepared itemizing the findings. A plan will then be submitted making recommendations for the protection of, or measures to be taken to mitigate impacts for identified cultural or paleontological resources. If cu Itural resources or paleontological remains (fossils) of significant scientific interest are discovered during operations under this 6htQf I al lease, the lessee prior to disturbance shall, immediately bring them to the attention of the appropriate aut ill R remains of significant scientific interest do not include leaves, ferns, or dinosaur tracks commonly encountered £luring underground mining operations.

FEB 0 1 2011

The cost of conducting the inventory, preparing reports, and carrying out mitigating measures shall b

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6. If there is reason to believe that Threatened or Endangered (T&E) species of plants or animals, or migratory bird species of high Federal interest occur in the area, the Lessee shall be required to conduct an intensive field inventory of the area to be disturbed and/or impacted. The inventory shall be conducted by a qualified specialist and a report offindings will be prepared. A plan will be prepared making recommendations for the protection of these species or action necessary to mitigate the disturbance. The cost of conducting the inventory, preparing reports, and carrying out mitigating measures shall be borne by the lessee.



7. The Lessee shall be required to perform a study to secure adequate baseline data to quantity the existing surface resources on and djacent to the lease area. Existing data may be used if such data are adequate for the intended purposes. The study shall be dequate to locate, quantity, and demonstrate the interrelationship of the geology, topography, surface and ground water hydrology, vegetation and wildlife. Baseline data will be established so that future programs of observation can be incorporated at regular intervals for comparison.

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8. Powerlines used in conjunction with the mining of coal from this lease shall be constructed so as to provide adequate protection or raptors and other large birds. When feasible , powerlines will be located at least 100 yards from public roads. 9. The limited area available for mine facilities at the coal outcrop, steep topography, adverse winter weather, and physical limitations on the size and design of the access road, are factors which will determine the ultimate size ofthe surface area utilized for the mine. A site specific environmental analysis will be prepared for each new mine site development and for major modifications to existing developments to examine alternatives and mitigate conflicts. 10. Consideration will be given to site selection to reduce adverse visual impacts. Where alternative sites are available, and each alternative is technically feasible , the alternative involving the least damage to the scenery and other resources shall be selected. Permanent structures and facilities will be designed, and screening techniques employed, to reduce visual impacts, and where possible achieve a final landscape compatible with the natural surroundings. The creation of unusual , objectionable, or unnatural land forms and vegetative landscape features will be avoided. 11. The Lessee shall be requ ired to establ ish a monitoring system to locate, measure, and quantify the progressive and final effects of underground mining activities on the topographic surface, underground and surface hydrology and vegetation. The monitoring system shall utilize techniques which will provide a continuing record of change over time and an analytical method for location and measurement of a number of points over the lease area. The monitoring shall incorporate and be an extension of the baseline data. 12. The lessee shall provide for the suppression and control of fugitive dust on haul roads and at coal handling and storage facilities. On Forest Development Roads (FDR), lessees may perform their share of road maintenance by a commensurate share agreement if a significant degree of traffic is generated that is not related to their activities.



13. Except at specifically approved locations, underground mining operations shall be conducted in such a manner so as to prevent surface subsidence that would : (I) cause the creation of hazardous conditions such as potential escarpment failure and landslides, (2) cause damage to existing surface structures, and (3) damage or alter the flow of perennial streams. The lessee shall provide specific neasures for the protection of escarpments, and determine corrective measures to assure that hazardous conditions are not created. 14. In order to avoid surface disturbance on steep canyon slopes and to preclude the need for surface access, all surface breakouts for ventilation tunnels shall be constructed from inside the mine, except at specifically approved locations. 15. Ifremoval of timber is required for clearing of construction sites, etc. , such timber shall be removed in accordance with the regulations of the surface management agency. 16. The coal contained within , and authorized for mining under this lease, shall be extracted only by underground mining methods. 17. Existing Forest Service owned or permitted surface improvements will need to be protected, restore' the continuance of current land uses.

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FEB 0 1 2011

18. In order to protect big game wintering areas, elk calving and deer fawning areas, sagegrouse str wildlife habitat and/or activities, specific surface uses outside the mine development area may be curt the year. 19. SuppOJi facilities, structures, equipment, and similar developments will be removed from the lease area within 2 years after the final termination of use of such facilities. This provision shall apply unless the requirement of Section 10 of the lease form is applicable. Disturbed areas and those areas previously occupied by such facilities will be stabilized and rehabilitated, drainages reestablished, and the areas returned to a premining land use.



20. The Lessee at the conclusion ofthe mining operation, or at other times as surface disturbance related to mining may occur, will replace all damaged, disturbed, or displaced corner monuments (section corners, quarter corners, etc.) their accessories and ppendages (witness trees, bearing trees, etc.), or restore them to their original condition and location, or at other locations that meet he requirements of the rectangular surveying system. This work shall be conducted at the expense of the Lessee, by BLM to the standards and guidelines found in the Manual of Surveying Instructions, U.S. Department of Interior.



21. The Lessee, at his expense, will be responsible to replace any surface and/or developed ground water sources identified for rotection, that may be lost or adversely affected by mining operations, with water from an alternate source in sufficient quantity and quality to maintain existing riparian habitat, fishery habitat, livestock and wildlife use, or other land uses (authorized by 36 CFR 251 ). 22. The Licensee/Permittee/Lessee must comply with all the rules and regulations of the Secretary of Agriculture set forth at Title 36, Chapter II, of the Code of Federal Regulations governing the use and management of the National Forest System (NFS) when not inconsistent with the rights granted by the Secretary of the Interior in the license/permit/lease. The Secretary of Agriculture's rules and regulations must be complied with for (1) all use and occupancy of the NFS prior to approval ofa penn it/operation plan by the Secretary of Interior, (2) uses of all existing improvements, such as Forest Development Roads, within and outside the area licensed, permitted or leased by the Secretary of Interior, and (3) use and occupancy of the NFS not authorized by a penn it/operation plan approved by the Secretary of the Interior. All matters related to this stipulation are to be addressed to: Forest Supervisor Fishlake National Forest 115 East 900 North Richfield, Utah 84701 Telephone No. : 435-896-9233 who is the authorized representative of the Secretary of Agricu Iture.

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23. Notwithstanding the approval of a resource recovery and protection plan by the BLM, lessor reserves the right to seek damages against the operator/lessee in the event (1) the operator/lessee fails o achieve maximum economic recovery [as defined at 43 CFR §3480.0-5(21)] of the recoverable coal reserves or (ii) the operator/lessee is determined to have caused a wasting of recoverable coal reserves. Damages shall be measured on the basis of the royalty that would have been payable on the wasted or unrecovered coal. The parties recognize that under an approved R2P2, conditions may require a modification by the operator/lessee of that plan. In the event a coal bed or portion thereof is not to be mined or is rendered unminable by the operation, the operator shall submit appropriate justification to obtain approval by the AO to leave such reserves unmined. Upon approval by the AO, such coal beds or portions thereof shall not be subject to damages as described above. Further, nothing in this section shall prevent the operator/lessee from exercising its right to relinquish all or a portion of the lease as authorized by statute and regu lation. In the event the AO determines that the R2P2 modification will not attain MER resulting from changed conditions, the AO will give proper notice to the operator/lessee as required under applicable regulations. The AO will order a new R2P2 modification if necessary, identifying additional reserves to be mined in order to attain MER. Upon a final administrative or judicial ruling upholding such an ordered modification, any reserves left unm ined (wasted) under that plan will be subject to damages as described in the first paragraph under this section. Subject to the right to appeal hereinafter set forth, payment of the value of the royalty on such unmined recoverable coal reserves shall become due and payable upon determination by the AO that the coal reserves have been rendered unminable or at such time that the lessee has demonstrated an unwillingness to extract the coal.

.

he BLM may enforce this provision either by issuing a written decision requiring payment of the MMS demand for such royalties, or by issuing a notice of non-compliance. A decision or notice of non-compliance issued by the lessor that payment is due under this stipulation is appealable as allowed by law.

INCORPORATED

FEB 0 1 2011 Div. of Oil, Gas & Mining

"



4. W ASTE CERTIFICATION: The Lessee shall provide upon abandonment, transfer of operation, assignment of rights, sealing ff a mined area and prior to lease relinquishment, certification to the lessor that, based upon a complete search of all the records for the lease and its associated mine operation(s), and upon Lessee's and the operator's knowledge of past mining operations associated with the lease, there has been no reportable quantities of hazardous substances per (40 CFR 302.4) or used oil [as per Utah State Management Rule R-315-15], discharged, deposited or released within the lease, either on the surface or underground, and that all remedial actions necessary have been taken to protect human health and the environment with respect to any such substances. Lessee must additionally provide to the Lessor a complete list of all hazardous substances and hazardous materials and their Chemical Abstract Registry Numbers, and the oil and petroleum products used or stored on, or delivered to, the lease. Such disclosure will be in addition to any other disclosure required by law or agreement. 25. UNDERGROUND INSPECTION: All safe and accessible areas shall be inspected prior to being sealed. The lessee shall notify the Authorized Officer in writing 30 days prior to the sealing of any areas in the mine and state the reason for closure. Prior to seals being put into place, the lessee shall inspect the area and document any equipment/machinery, hazardous substances, and used oil that is to be left underground. The AO may participate in this inspection. The purpose of this inspection will be: (1) to provide documentation for compliance with 42 U.S.C. 9620 section 120(h) and Utah State Management Rule R-315-15, and to assure that certification will be meaningful at the time of lease relinquishment, (2) to document the inspection with a mine map showing location of equipment/machinery (model, type offluid, amount remaining, batteries etc.) that is proposed to be left underground. In addition, these items will be photographed at the Lessee's expense and shall be submitted to the Authorized Officer as part of the certification. The abandonment of any equipment/machinery shall be on a case by case basis and shall not be accomplished unless the Authorized Officer has granted a written approval. Anyon-lease disposal of non-coal waste must comply with 30 CFR §8 I 7.89 .



6. GOB VENT BOREHOLES. The Lessee shall submit a gob vent borehole plan for approval by the AO as part of an R2P2 for all gob vent boreholes. The plugging portion of the plan must meet 43 CFR 3484. I (a)(3) as a minimum. Ifvariations to the approved plugging procedures are necessary, they shall also be approved by the AO in writing prior to implementation of the procedures. 27. FAIR MARKET VALUE BONUS: Pursuant to 43 CFR 3432.2(c), "the lands applied for shall be added to the existing lease without competitive bidding, but the United States shall receive the fair market value of the lease of the added lands, either by cash payment or adjustment of the royalty applicable to the lands added to the lease by the modification." Therefore, the lessee will pay the fair market value (FMV) bonus payment for the coal resources mined in the area of Federal coal lease modification (SL-062583) Tract 2, in the amount of$155,667, prior to approval of the modification adding Tract 2 to lease SL-062583. A payment of$159,333 will be due prior to one year anniversary of the approval of the modification and a final payment of$163,333 will be required to be paid prior to the second year anniversary of the approval of the modification. Finally, an additional bonus payment will be due for the coal resources mined on the areas comprised of Federal coal lease modification acreage added to coal leases SL- 062583 (Tract 2), UTU-47080 (Tract 2) and UTU-63214 (Tract 3), which exceed 6,930,000 tons mined , at a rate of$.35 per ton for the actual tonnage mined, adjusted annually using the U. S. Bureau of Labor Statistics CPI West Urban Energy Index; or if that index is not available an index that is mutually agreed to by the lessee and the authorized officer will be used . . Payment of this part of the FMV at the specified rate and tonnage mined will be on the schedule required for payment of production royalties to the Minerals Management Service (MMS). The lessee will clearly indicate which portion of the payment is for royalty and what is for the lease bonus payment.

INCORPORATED



FEB 0 1 2011 Div. of Oil, Gas &Mining

i.



" ,

UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF LAND MANAGEMENT MODIFIED COAL LEASE

Serial NO._

UTU-47080_

Date of Lease_October 1, 1981_

PART I. THIS MODIFIED COAL LEASE is entered into on ,by and between the UNITED STATES OF AMERICA, hereinafter called the Lessor, through the Bureau of Land Management, and Canyon Fuel Company LLC clo Ark Land Company City Place One, Suite 300 St. Louis, MO 63141 hereinafter called Lessee. Th is modified lease shall retain the effective date of October 1, 1981 , of the original COAL LEASE UTU- 47080 , and is effective for a period of 10 years from the date of the last lease readjustment, dated October 1, 2001 and for so long thereafter as coal is produced in commercial quantities from the leased lands, subject to readjustment of lease terms at the end of each 10 year lease period thereafter. Sec. 1. This lease is issued pursuant and subject to the terms and provisions of the: (NOTE: Check the appropriate Act or Acts.)



XX Mineral Lands Leasing Act of 1920, as amended, 41 Stat. 437 , 30 U.S.C. 181-287, hereinafter referred to as the Act; _ Mineral Leasing Act for Acquired Lands of 1947,61 Stat. 913, 30 U.S.C. 351-359; and to the regulations and formal orders of the Secretary of the Interior which are now or hereafter in force, when not inconsistent with the express and specific provisions herein . Sec. 2. Lessee as the holder of Coal Lease UTU- 47080, issued effective October 1, 1981 , was granted the exclusive right and privilege to drill for, mine, extract, remove or otherwise process and dispose ofthe coal deposits in , upon, or under the lands described below as Tract 1. The Lessor in consideration offair market value, rents and royalties to be paid , and the conditions and covenants to be observed as herein set forth , hereby grants and leases to Lessee the exclusive right and privilege to drill for, mine, extract, remove, or otherwise process and dispose ofthe coal deposits in, upon, or un~\~~t!s Clesc.ribed belOW as Tract 2. J.~.?

y

O)~ Tract 1:



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' COUNTY OF mE STATE OF

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This instrument was acknowledged before me on the l'l"tt... day of uc:ea-sT:., 2015, by bENE ~lC-LP\U."bl() , its' ,on behalf of ----==~~--------Canyon Fuel Company, LLC, Lessee.

INCORPORATED 3

MAY 3 1 2017 Div. of Oil, Gas & Mining

APPENDIX 1-3 Newspaper Advertisement



'NCORPORATED

FEB 0' 20" OlV. 01 Oii, Gas &. Mining

PUBLIC NOTICE Canyon Fuel Company LLC, 225 North Fifth Street, Suite 900, Orand Junction, CO 81501 has filed an appliAFFIDAVIT OF PUBLICATION cation for a coal mining per.. mit revision under the laws at the State of Utah and the U.S. Office of Surface Mining. ApproVal of. tpis applic~. County of Sevier, State of Utah, SSe tion IS a revIsIon that 1 adding 2,312.74 acres of lease to allow coal mining _opera.. NO 29 lions at the SUFCO MUle to continue within the author. . I, SHALON PUZEY, being first duly @wo I Fuel orTIpan ized leasehold interest and fee lands owned bY Canyon Fuel depose and say 1 am the Legal Secretary Sf 1"'0 Mine Co~pany LLC for a total of 27,605.17 acres. The land on THE RICHFIELD REAPER, a weekly paper having which mining is to continue are located in Sevier County a bona fide circulation of more than 200 and includes parts of the Fishlake Nation8l Forest. The subscribers in the State of Utah, published mine portals are located 30 every Wednesday at Richfield, Sevier County, miles east of Salina, Utah, located within Section 12, Utah, and that said notice was published on rNW 1\41 Township 22· S., Range 1+ E. The approximate.. Utahlegals.com, a website established by the Iy Z,312.74 acre additional leasehold modification Utah Press Association through the collective involves all or part of the folefforts of Utah's newspapers, on the same lowing coal leases which hav~ been as~ed and added to day as the first newspaper publication and the Camton Fuel Comp.any l.LC. Federal Coal Lease SL notice remained on Utahlegals.com until the 062583 (877.06 acres) last day of publication. T. 22 S., R. 4 E., SLM. , Utah Sec. 2, SE1I4J,.S1I2SW1I4; Sec. 3, SEl/4~E1I4' That the notice CANYON FUEL a copy of which Sec. 10, E1I2NEl/4, NE1I4SE1I4' is attached hereto, was published in said Sec. I~J N1I2, N1I2S112; paper for 4 consecutive issues, the Federal Coal Lease U 47080 (795.68 acres) first publication having been made in the issue T. 21 S., R. 4 E., SLM, Utah of the 20 day of OCTOBER 2010, and the Sec. 35,t,E1I2, E1I2SW.,.1(4; T. 22 ~., R. 4 E., SLM, last publication in the issue of the 10 day • Utah of NOVEMBER 2010 that the said notice was Sec. 2, lots 1.. 4 S4I2NE1I4, S1I2NW1I4: published in the regular and entire issue of N1I2SW 114' Sec. 3, NE1I4SE1I4. every number of said paper during the period Federal Coal Lease 'U 63214 (640 acres) of . es and publication, and that the same . I T. 21 S., R. 4 E., SLM, as p hed in the s aper proper and Utah Sec. 26, E1I2, E1I2SW1I4; not in pie ent Sec. 35, NW1I4, W1I2SW 114: After filinS, copies of the permit application will be available for ins~tion at the following locations: Utah Division of OiL. Gas and Mining, 1594 west North Temple, Suite 1210 1 Salt Lake Subscribed and sworn to before me this City, Utah; and SevIer County CoUrthouse, Richfield, Utah. 10 day of NOVEMBER, 2010 Written comments or !l:eQuests for an informal conference regarding this appli. cation may-be addressed Wlth. in 3Q days of'the last publica. tion date of this notice, to the Notary Public U~ Division of Oil, Gas and MinID~., Box 145801 Salt

2010

c::C~c~~____ _

~flij!ty'edU~ 84114;-5801.

sb is. The Richfield mfSlf
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