COMMONWEALTH OF VIRGINIA BEFORE THE DEPARTMENT OF MINES, MINERALS AND ENERGY COMPLIANCE AGREENIENT Purpose and Jurisdiction This is 3 Compliance AGREEMENT entered into between the Department of Mines, Minerals and Energy (DMME), Division of Mined Land Reclamation (DMLR) and the following corporate/business entities collectively hereafter referred to as the Justice Companies A Coal Corporation, Virginia Fuel Corporation, Chestnut Land Holdings, L.L.C., Justice Low Seam Mining, Inc, Meg-Lynn Land Company, 1110., Black River Coal, L.L.C., and Baden Reclamation Company, Inc. The representations and undertakings provided for herein pertain only to the and the Justice Companies. The Justice Companies are permittees for the coal surface mining permits listed on Attachment A. The DMME has become concerned about timely abatement of violations issued to the Justice Companies? permits, timely payment of outstanding civil penalties associated with the violations listed in Attachment B, and the Justice Companies? level of commitment to perform reclamation and maintenance at both active and inactive permit sites. The purpose of this AGREEMENT is to provide assurance to DMME that the current and outstanding violations will be timely resolved, permit site maintenance will be done to prevent future violations, and reclamation of the sites as required in the approved detailed plans of the respective permits will be timely accomplished. This AGREEMENT sets out a plan for abatement of current violations, payment of outstanding civil penalties, and for commitments by the Justice Companies to maintain suf?cient resources in equipment, personnel, and materials to meet the terms of the AGREEMENT and to communicate with DMLR regarding any deviations from the agreed schedule and/or conditions. The Justice Companies agree that is authorized to enforce the Virginia Coal Surface Mining Control and Reclamation Act (Title 45.1, Chapter 19 of the Code of Virginia, as amended) and the Virginia Coal Surface Mining Reclamation Compliance Agreement Justice Companies Page 2 of 20 Regulations The Justice Companies further agree that the failure to comply with outstanding enforcement action, speci?cally failure to abate cessation orders issued under could result in suspension/revocation of permit(s) and/or forfeiture of performance bond under and 4VAC25- 130-800.50 It is the Justice Companies? intent and purpose to enter into this AGREEMENT to address the outstanding reclamation obligations so as to preclude permit revocation(s) or performance bond forfeiture(s). Facts The Justice Companies and DMME agree to the accuracy of the following facts: 1. A Coal Corporation (A Coal) is the current perrnittee of record with the DMLR for active coal surface mining and reclamation operations under permit numbers 1301992, 1102003, 1102028, 1102042, 1302047, 1302048, 1102051, 1102052, 1502053, 1102054, 1502057, and 1102058 in Wise County. 2. Virginia Fuel Corporation (Virginia Fuel) is the current permittee of record with the DMLR for coal surface mining and reclamation operations under Virginia Coal Surface Mining Operation Permit Nos. 1102059, 1202070, 1302069, 1602078, 1602068, 1602071, 1602072, 1702073, 1602074, 1202076, 1102077, 1202075. Operations are located in Lee, Wise, and Dickenson Counties 3. A Coal conducts coal surface mining operations under Baden Reclamation Company, Inc. (Baden Reclamation) Permit No. 1101953 in Dickenson County. 4. Justice Low Seam Mining, Inc. (Justice Low ?Seam) is the current perrnittee of record with the DMLR for coal surface mining and reclamation operations under Virginia Coal Surface Mining Operation Permit No. 1102079 in Tazewell County. Compliance Agreement . Justice Companies Page 3 of 20 Meg-Lynn Land Company, Inc. (Meg-Lynn) is the current perrnittee of record with the DMLR for coal surface mining and reclamation operations under Virginia Coal Surface Mining Operation Permit Nos. 1 101800 and 1 101824. As listed in Attachment B, DMLR has issued enforcement action and civil penalties to the Justice Companies? permits for violations of the and/or approved permit requirements. Meg-Lynn?s Permit No. 1101824 was issued Notice of Violation No. JRJ0001143 (violation 1 of 1) on September 17, 2013, requiring the operator to back?ll all existing highwall required to be eliminated, regrade and seed all disturbed areas on the permit. No mining activity has occurred on the permit since March 2013, and the 6 month temporary cessation expired on September 14, 2013. The abatement date to comply with JRJ0001143 was December 17, 2013. Meg-Lynn has not complied with the NOV. Cessation Order No. JRJ0001307 (violation 1 of 1) on December 18, 2013 for failure to comply with JRJ0001143, violation 1 of 1. A Coal?s Permit No. 1101905 was issued Notice of Violation No. JRJ0001187 (violation 1 of 1) on October 8, 2013, requiring the operator to back?ll all existing highwall required to be eliminated, regrade and seed all disturbed areas on the permit. No mining activity has occurred on the permit since April 2013, and the 6 month temporary cessation expired on October 5, 2013. The abatement date to comply with JRJ0001187 was set for January 8, 2014. A Coal has not complied with the NOV. Cessation Order Nif Jail??ggviolation 1 of 1) on January 13, 2014 for failure to comply with JRJ0001187, violation 1 of 1. A Coal?s Permit No. 1101914 was issued - Notice of Violation No. CEV0008373 (Violation 1 of l) on August 13, 2012, requiring the construction of ponds 4A through 4F and maintenance of other ponds. All Compliance Agreement .Justice Companies Page 4 of 20 10. required work has been completed, except for the ?nishing work on the spillways of Ponds 4A and 4F, The abatement date has been extended to February 1, 2014. A Coal has not fully complied with the NOV. Notice of Violation No. CEV0008858 (violation 1 of 2) on September 25, 2013, requiring the operator to construct and/ or reconstruct all diversion ditches on the hollow ?lls identi?ed. The abatement date of CEV0008 858 (violation 1 of 2) has been extended to March 24, 2014. A Coal has not fully complied with the NOV. Notice of Violation No. CEV0008882 (violation 1 of 1) on October 16, 2013, requiring the company to take all necessary measures so as to bring back?lling and regrading to a current status. No mining activity has occurred on the permit since April 2013, and the 6 month temporary cessation expired on October 5, 2013. The abatement date to comply with CEV0008882 was set for January 14, 2014. A Coal has not complied with the NOV. Cessation Order No. (violation 1 of 1) on January 15, 2014 for failure to comply with CEV0008882, violation 1 of 1. Baden Reclamation?s Permit No. 1101953 was issued Notice of Violation No. WAC0009176 (violation 1 of 3) on June 24, 2013, requiring the back?ll and regrade of the highwall in Area 4. The abatement date was set for September 19, 2013. The NOV was not complied. (b)Notice of Violation No. WAC0009303 (violations 1 and 2 of 2) on September 5, 2013, requiring submittal of revision to revise the plans? cross sections and to back?ll and regrade Area 1 or submit notice of temporary cessation. No mining activity has occurred on the permit since before August 2013. The NOVs were not complied by the set abatement dates of Oct. 9, 2013 and Dec. 3, 2013, respectively. Cessation Order No. WAC0009342 (violation 1 of 1) on September 24, 2013 for failure to comply with WAC0009176, violation 1 of 3? requiring the back?ll and regrade of the highwall in Area 4. A show cause order was issued October 10, 2013 to determine whether the permit should be suspended or revoked. Compliance Agreement .Justice Companies Page 5 of 20 11. 12. Cessation Order No. WAC0009427 (violation 1 of 1) on November 22, 2013 for failure to comply with WAC00093 03, violation 1 of 2, requiring submittal of revision to revise the plans? cross sections. - Cessation Order No. WAC0009454 (violation 1 of 1) on December 6, 2013 for failure to comply with WAC0009303, violation 2 of 2 - to back?ll and regrade Area 1 or submit notice of temporary cessation. Notice of Violation No. WAC0009455 (violation 2 of 4) on December 6, 2013 requiring maintenance of Haulroads and and had the set abatement date of January 3, 2014. Cessation Order No. WAC0009500 (violation 1 of l) on January 8, 2014 for failure to abate WAC0009455, violation 2 of 4. A Coal?s Permit No. 1101954 was issued Notice of Violation No. JRJ0001179 (violation 1 of 1) on October 8, 2013, requiring the operator to back?ll all existing highwall required to be eliminated, regrade and seed all disturbed areas on the permit. No mining activity has occurred on the permit since March 2013, and the 6 month temporary cessation expired on September 23, 2013. The abatement date to comply with JRJ0001179 was set for January 8, 2014. A Coal has not complied with the Cessation Order No. (violation 1 of 1) on January 13, 2014 for failure to abate JRJ0001179, violation 1 of 1. A Coal?s Permit No. 1301992 was issued 4 Notice of Violation No. JRJ 0000169 (violation 1 of 1) on February 21, 2012 requiring the compliance with Revision Nos. 1005008 and 1002560 reclamation of silos disturbed area. The abatement date was extended several times ?'om May 29, 2012 to May 30, 2013. Two of the six silos were demolished. Cessation Order No. JRJ0000976 (violation 1 of 1) on June 4, 2013 for failure to comply with JRJ0000169. A Coal has not fully complied with the CO. Compliance Agreement .Justice Companies Page 6 of 20 13. 14. 15. (0) Determination of bond forfeiture on June 11, 2013 for failure to reclaim the silos and disturbed areas. A Coal?s Permit No. 1102042 was issued Notice of Violation No. STJ 0008546 (Violation 1 of 1) on June 4, 2013 requiring the operator to bring the back?lling and grading to a current status. No mining activity had occurred on the permit during temporary cessation status, which the 6 month limit expired on May 16, 2013. The abatement date to comply with STJ0008546 was September 23, 2013. A Coal did not comply with the NOV. Cessation Order No. (violation 1 of 1) on October 3, 2013 for failure to comply with STJ 0008546. A show cause order was issued November 12, 2013 to determine whether the permit should be suspended or revoked. Va. Fuel?s Permit No. 1102059 was issued Notice of Violation No. HGC0010204 (violation 1 of 1) on September 6, 2013 requiring the return of suf?cient equipment and personnel to resume back?lling of the ?nal pit. No work had been conducted to back?ll the ?nal pit since June 25, 2013. The abatement date to comply was set for October 20, 2013. Va. Fuel did not comply with the NOV. Cessation Order No. HGC0010329 (violation 1 of 1) on November 21, 2013 for failure to abate HGC0010204. A Coal?s Permit No. 1502053 was issued Notice of Violation No. LJJ0000693 (violation 2 of 2) on October 22, 2013 requiring the operator to reclaim the facility according to the approved plans. N0 mining activity has occurred on the permit since the 6 month temporary cessation expired on May 30, 2013. The abatement date to comply with LJJ 0000693 was set for January 23, 2014. A Coal has not complied with the NOV. Compliance Page 7 of 20 16. 17. 18. 19. Agreement Justice Companies A Coal?s Permit No. 1502057 was issued Notice of Violation No. KC0000619 (violation 3 of 3) on September 16, 2013, requiring the operator to back?ll all remaining highwalls required to be eliminated, regrade, and seed all disturbed areas. No mining activity has occurred on the permit since the 6 month temporary cessation expired on May 18, 2013. The abatement date to comply with JKC0000619 was set for December 16, 2013. A Coal has not complied with the NOV. Va. Fuel?s Permit No. 1602071 was issued Notice of Violation No. JRJ0001317 (violation 1 of l) on December 30, 2013 requiring the operator to back?ll all existing highwall required to be eliminated, regrade, and seed all disturbed areas on the permit. No mining activity has occurred on the permit since June 2013, and the 6 month temporary cessation for the 17.72 acres expired on December 20, 2013. The abatement date to comply with was set for March 28, 2014. Va. Fuel?s Permit No. 1602078 was issued Notice of Violation No. JRJ0001315 (violation 1 of 1) on December 30, 2013 requiring the operator to back?ll all existing highwall required to be eliminated, regrade, and seed all disturbed areas on the permit. No mining activity has occurred on the permit since June 2013, and the 6 month temporary cessation for the 80.3 acres expired on December 20, 2013. The abatement date to comply with JRJ0001315 was set for March 28, 2014. As noted in Attachment B, the Justice Companies have an outstanding ?nal civil penalties obligation totaling $118,630.00 as of January 8, 2014. As provided under and the failure to submit a ?nal civil penalty is subject to issuance of a show cause order. Compliance Agreement .Justice Companies Page 8 of 20 AGREEMENT DMME and the Justice Companies by their signatures to this AGREEMENT agree as follows: This AGREEMENT addresses the violations identi?ed herein in Facts 7 through 19. Nothing in this AGREEMENT precludes DMME from taking any lawful action(s) regarding additional or subsequent violations after the date of entry of this AGREEMENT or expiration and non-compliance with any expired or expiring Notice of violation cited herein. The Justice Companies shall submit to DMME by January 16, 2014 a list of those permits identi?ed in Facts I and 13?18 that it has chosen to remain in temporary cessation status. Upon execution of this AGREEMENT, the Justice Companies will submit within 15 days of this signed AGREEMENT, permit revision applications to the DMLR for the permits that will continue in temporary cessation status that shall, pursuant to Va. Code 45.1 -2 70.3F calculate the total estimated cost of reclamation for all portions of the permitted sites which have been and continue to be in temporary cessation for greater than six months. Upon the approval of each revision application, the determined cost bond amount in a form required by 4VAC25- shall be submitted for that permit to the DMLR within 15 days of the revision?s approval. The DMLR may reduce the cost estimate to the applicable Pool Bond level once coal surface mining operations have been reactivated for mining with the necessary spread(s) of equipment at the respective permit for no less than 60 continuous days. The permits in Facts 7-1 1 and 13-18 that will no longer remain in temporary cessation status shall be reactivated for mining with the appropriate spread(s) of equipment (per the respective approved permit?s plans) within 30 days of the executed AGREEMENT or reclamation of the disturbed areas will commence as noted in Attachment with the equipment listed in Attachment Compliance Agreement . Justice-Companies Page 9 of 20 D. Justice Companies shall maintain suf?cient resources in equipment, personnel, and materials to meet the terms of this AGREEMENT and to immediately communicate in writing with DMLR (to the attention of the Division Director) regarding any deviation(s) from the agreed schedule (Attachment D) and/or conditions of this AGREEMENT. In the event equipment malfunction occurs, the Justice Companies shall cause the prompt repair of said equipment necessary for compliance with this AGREEMENT or replacement of such with equivalent functioning equipment Within ?ve (5) working days. The appropriate ?eld inspectors and supervisors will be provided a copy of the executed AGREEMENT and shall monitor the compliance activities and progress for each applicable permit. The Inspector will notify the appropriate authorized Justice Companies? representative(s) of the status of progress and any concern regarding compliance for each respective permit. Each site visit will be documented by inspection report that the Inspector will send by electronic mail to the authorized representative(s) of the Justice Companies. A minimum of 1 inspection per month per permit will be conducted by the DMME Inspector. The DMME Inspector may conduct other site Visits/inspections on an irregular basis to document compliance progress on each respective permit. ?eld and management staff will be available to discuss the status of compliance work under the AGREEMENT with the Justice Companies representative(s) as requested. This AGIUEEMENT does not apply to the required maintenance and monitoring that the Justice Companies must continue to conduct on each permit as set forth in the respective approved permit?s plans. The Justice Companies shall complete the reclamation of Permit No. 1301992 in accordance with Attachment Item #3 by no later than June 30, 2014. The Compliance Agreement . Justice Companies Page 10 of 20 will initiate performance bond collection in the event the company fails to meet any interim phase/obj ective per Item unless the DMLR has ?rst been suf?ciently and timely informed of the reasons for such delay and has agreed to such. J. The Justice Companies shall submit the outstanding ?nal civil penalty total of $118,630 per Fact #19 to the DMLR with its submittal of the AGREEMENT to DMLR for the approval and signatures. Payment shall be made by cashier?s or certi?ed check made payable to the ?Treasurer of Virginia? and be submitted to the attention of the Hearings and Legal Services Of?cer. K. In the event the Justice Companies fail to comply with any provision of this AGREEMENT, without the prior consent or approval of the DMME, the DMME shall proceed with action to revoke and render a bond forfeiture determination of the particular permit(s). The Justice Companies shall have the right to request, in writing, administrative review of any subsequent show cause order or bond forfeiture determination within the applicable time limits set under the L. The Justice Companies agree by their authorized representative?s signature hereto that they have received full and fair process in this matter including all due process rights guaranteed under the constitutions of the United States and the Commonwealth of Virginia, as well as those rights extended by Virginia?s Administrative Process Act, and the sections following it, as well as the as currently amended. The Justice Companies hereby waive the right to any hearing or other administrative proceeding authorized or required by law or regulation herein regarding the issuance of the enforcement action and civil penalties listed in Facts 7-19 herein. Nothing, however, in this AGREEMENT shall be construed as a waiver of the right to any administrative proceeding for, or to judicial review of, any action taken by DMME to enforce this AGREEMENT. Compliance Agreement . Justice Companies Page 11 of 20 M. The Justice Companies and DMME agree that no alteration may be made to this or approved addendums hereto, unless it is in writing, agreed upon by the parties, and executed by authorized representatives of the respective parties. N. Nothing herein affects or shall be construed to affect authorized enforcement actions by any other federal, State, or local regulatory authority. 0. If any provision in the AGREEMENT is found unenforceable for any reason, the remainder of the AGREEMENT remains in full force and effect. Compliance Agreement Justice Companies Page 12 of 20 Signatory Page By signature below, the Justice Companies voluntarily accept this AGREEMENT. 332% #71 Fri Date Name: ames C. Justice, Title: Executive Vice President For: James C. Justice Companies, Inc. By signature below, the Director for the Division of Mined Land Reclamation acknowledges receipt of the signed AGREEMENT from The Justice Companies. By: 311 aux/x Rand}; Casey Date Title: Director, For: Division of Mined Land Reclamation By signature below, I hereby approve and accept this AGREEMENT, effective this date. By: 296/4944 Title: Bradley C. Date Deputy Directo For: Department of Mines, Minerals and Energy Compliance Agreement Justice Companies Page 13 of 20 Attachment Permittee CSMO Permit A Coal Corporation 1101905 1101914 1101917 1101918 1101954 1101975 1101991 1301992 1 102003 1102028 1 102042 1302047 1302048 1102051 1102052 1502053 1102054 1502057 1102058 Airway Resources, L.L.C. 1301742 Baden Reclamation Company, Inc. 1101953 Cane Patch Mining Company, Inc. 1101554 Chestnut Land Holdings L.L.C. 1302066 Justice Low?Seam Mining, Inc. 1 102079 Meg~Lynn Land Company, Inc. 1101800 1101824 Virginia Fuel Corporation 1102059 1602068 1202070 1602071 1602072 1702073 1602074 1 602078 4 Compliance Agreement. Justice Companies Page 14 of 20 Attachment Outstanding Violations and Final Civil Penalties Permit - Company (3011 PSC- Issued DescriptiOn 1301742 Airway Resources L110000452 I A0 I Penalty of $38.5 LLC 1 101800 Meg-Lynn Land LJ10000149 WM Penalty of $420 CO. Inc. 1 101800 Meg-Lynn Land L110000149 HR Penalty of $495 Co. Inc- 1101824 Meg-Lynn Land .TRJ0001143 BR 17?Sep?13 17-Dec-13 back?lling regrading seed Co. Inc. disturbed areas. i1101824 Meg-Lynn Land BR 18-Dec-13 NA Fta JRJ0001143 BR -, Co. Inc. 1101822 A Coal Corp. [Du-10003825 [ss Penalty 615440 1101905 A Coal Corp. BR 08-Oct?13 11-Jan-14 TC expired 10/5/13 1101905 a Coal Corp. 11110001032 RV [11611111601522.500 1101914 A Coal Corp. CEV0008858 DS I 25-Sep-i 3 2-Dec-13 [diversions breached 101914 A Coal Corp. CEV0008882 BR 16-Oct-13 14-Jan-14 TC expired 1015/ 13 back?lling L: regrading 1101953 Baden Reclamation WAC0009176 l-lR Penalty of $440 Co. inc. 1 1101953 Baden Reclamation BR Penalty of $790 Co. Inc. 1101953 Baden Reclamation A0 05-Sep-13 15 -Nov-13 WAC0009220 not complied - Co. Inc. revision 1101953 Baden Reclamation WAC00093 03 BR 05?Sep-13 3-Dec-l3 failure to submit TC notice Area 1 Co. inc. 1101953 Baden Reclamation WAC0009342 BR 24-Sep-13 NA fta NOV WA00009176 ER in area 4 Co. Inc. . .- Show Cause Order Oct. 10, 2013 11101953 Baden Reclamation A0 11122113 NA Fta WAC0009303 A0 Co. Inc. 1101953 Baden Reclamation WAC0009454 BR 5-Dec-13 NA Fta WA00009303 BR Area 1 Co. Inc. 1 1101953 Baden Reclamation WAC0009455 A0 4-Dec-13 3?Jan-14 Anniversary materials Co. Inc. 1101953 Baden Reclamation WAC0009455 HR 4-Dec-l3 3?Jan-14 Haulroad Co. Inc. 1101953 Baden Reclamation WAC000945 5 SM 4-Dec-13 3-Jan-14 Permit Sign Co. Inc. 1101954 A a Coal Corp. JRJ0000859 [Penalty of $225 1101954 A a Coal Corp. 11110001016 RV [Penalty of $515 1101954 A a Coal Corp. 11110001179 BR 08-Oct-13[ 11-Jan-14 expired 9/23/13 [1 101975 A a Coal Corp. L110000475 [11v [Penalty of $515 [1301992 A a Coal Corp. JRJ0000169 21-Feb-12 30-May-13 [Remove silos [1301992 A a Coal Corp- [11110000976 14-Jun-13l NA [Fta NOVJRJ0000169 A0 silos [1102003 A a; Coal Corp. A0 [Penalty 015290 1102023 a Coal Corp. [11110000941 A0 [Penalty of $270 1 102028 Coal Corp. [11110001034 Penalty of $22,500 . 1992 939a: Compliance Agreement Justice Companies Page 15 of 20 Permit Company . C0151 - Issued Description I 1102042 A 31 C001 Corp. 3110003543 RV Peualtv 01 5495 11102042 A Coal Corp. 3110003546 1 11111 31-May-13 23-Sep-13 113110111111 regrade 11102042 A 81; 0001 Corp. 13110003746 11311 03001-131 NA 1110 311 11 102052111 61. Coal Corp. CEV0008746 1A0 1 1Peualtv 015405 11102052 (100113010. ICEV0008746 111V 1 1 Penaltv 01 $555 11102052 A 13001 Corn. 1 1031101103799 111 1 Penalw 01322500 11102052 A (2001 Corp. 1311 1 1136001151 01 5405 11502053 1A (3001 Corp. 1 1311 22?Oct?13 23-Jan-14 111: expired 5/30/13 11 1 02054 Coal Corp. 1L110000420 [Penalty 013225 11502057 A C001 Corp. 1101130003501 A0 IPenalty 015310 11502057 A 31 Coal Corn. IJKC0000428 RV 1 IPenaltv 01 $440 11502057 A Coal Corp. 1IKC000619 1311 1 16-Sep-131 16-Dec?13 TC expired 5113113 000111111 regmde 11502057 A Coal Corp. 1 ss 16-Sep-131 16?Dec-13 Ponds A3 A5 need clean out 11102053 A Coal Corp. 11110000417 1 111 lPenalty 01 3270 11102053 A 31 Coat Corp. 1510000597 1111 1 IPenally 015310 1102059 A Coal Corp. 111V 1 IPenalty 01 $770 1102059 A Coal C011). 1 HGC0010160 111v 1 Penalty 01317250 11020591116. Fuel Corp. HGC0010204 1BR 06-Sep-13l 20-Nov-13 0001111113; regrade 11020591Va. Fuel Corp. 1HGC0010329 1BR 21-Nov-13l NA 110 HGC0010204 1311 1602063 Va. Fuel Corp. 3110003550 11111 Penalty 015495 1602063 Va. Fuel Corp. 111V 1 Penalty 01522500 16020711Va. Fuel Corp. 11110001317 1 11111 30-Dec-13 23-Mar-14 TC expired 12115113 17020731110. Fuel Corp. 101130003422 1 11111 Penalty 01 $675 116020741170. Fuel Corp. 11110000939 1 A0 13000113: 013310 116020741170. Fuel Corp. KXC0008424 1 HR Penalty 013495 1160207311111. Fuel Corp. 11110001315 1 BR 30?Dec-13 28-Mar-14 TC expired 12120113 1602073 Va. Fuel Corp. 11110000933 11v Penalty 015515 1102079 Justice Low Seam TMM0008380 111 Penalty 01 $335 Mining, Inc. 1102079 Justice Low Seam RT Penalty of $850 Mining, Inc. 1402094 Black River Coal TMM0008631 A0 10-Dec-13 311?14 Failure to submit anniversary fees . LLC 1402094 Black River Coal TMM0003657 A0 3-100-14 NA Fta "1101010003631 A0 LLC Compliance Agreement .Justice Companies Page 16 of 20 Attachment Eguinment 1 - D-6 Bulldozer 1 - Bulldozer 1 - 155 Bulldozer 1 275 Bulldozer 2 Articulated Trucks 2 325 Komatsu Hydraulic Excavators 1 - 320 Komatsu Long Arm Excavator Work Crew/Operators Minimum of 35 hours/person/week Minimum of 140 hours/person/month Compliance Agreement .Justice Companies Page 17 of 20 L2.) Attachment Reclamation Schedule Permit No. 1102042 Beginning the week of January 6, 2014, a 325 Komatsu excavator and D-8 Caterpillar bulldozer will commence operation to reclaim all disturbed areas of the permit in accordance with the approved permit plans. The pieces of equipment and personnel shall be operated as a unit for not less than 140 hours per month (35 hours per week). An articulated truck (3 0-35 ton capacity) will be provided as necessary to accomplish the required back?lling and regrading in an expeditious manner. Seeding will follow highwall elimination as it progresses. Temporary seeding will be conducted if directed by the DMLR Inspector on reclaimed areas until such time that permanent seeding may be accomplished (commencing March 15, 2014). It is anticipated that reclamation of the disturbed areas will be completed by August 1, 2014. Permit No. 1101953 Beginning no later than the week of January 20, 2014, a 325 Komatsu excavator and 155 Komatsu bulldozer will commence operation to reclaim all disturbed areas of increment Areas 1 and 4 in accordance with the approved permit plans. The pieces of equipment and personnel shall be operated as a unit for not less than 140 hours per month (35 hours per week) for January 2014, the unit will be used for 105 hours. For the other increment areas that are in temporary cessation status of 6 months or longer, the Justice Companies shall submit the applicable cost bonds under Va. Code 45.1- 2703 and Item of the AGREEMENT. Temporary seeding will be conducted if directed by the DMLR Inspector on reclaimed areas until such time that permanent seeding may be accomplished (commencing March 15th). The Justice Companies shall comply with WAC0009455 (violations later than January 3, 2014 or by any extension date granted by the Inspector. Failure to comply would result in the issuance of the appropriate failure to abate cessation. Permit No. 1301992 Drilling of the four (4) standing silos in preparation of demolition will begin the week of January 13, 2014 and will be completed by the week of March 10, 2014. Demolition of the 4 silos will occur the week of March 17, 2014. The reclamation of the demolished silos, debris, and disturbed areas will be completed by June 30, 2014. The ?nal regrade con?guration will be covered with suitable material that will establish a root zone and vegetation. The Justice Companies will notify of the blasting/demolition contractor as soon as the contract between the contractor and the Justice Companies is executed. Permit No. 1102059 The Justice Companies is currently in negotiations to obtain a sublease agreement with Alpha Natural Resources for additional coal reserves adjacent to this permit. As no mining has occurred on this permit since June 25, 2013, the Justice Companies shall submit the applicable cost bonds under Va. Code 45.1-270.3 and Item of the AGREEMENT for this permit. Compliance Agreement Justice Companies Page 18 of 20 5. Permit No. 1101824 and 1101905 - Beginning the week of January 13th, a 155 Komatsu and a 275 Komatsu, will be in operation on these permit areas eliminating highwall as well as performing ?nal reclamation on the down slope areas. The pieces of equipment and personnel shall be operated as a unit for not less than 140 hours per month (35 hours per week) for January 2014, the unit will be used for 105 hours. In the event reclamation operations are not commenced by the beginning of February 2014, and due to the fact that no mining has occurred in over 6 months, the Justice Companies shall submit the applicable cost bonds under Va. Code 45.1-2703 and Item of the AGREEMENT for these permits. Temporary seeding will be conducted if directed by the DMLR Inspector on reclaimed areas until such time that permanent seeding may be accomplished (commencing March 15th). The anticipated completion deadline of reclamation is the end of July, 2014. If due to unforeseen events such as adverse weather or safety issues at this site, the Justice Companies will immediately (within ?ve working days) submit to DMME an explanation of the events that caused the delay(s) and an anticipated timeframe to restart reclamation work at the site (due to the unexpected delay) and any impact to the original completion date of July 2014. If deemed necessary for stabilization temporary seed mixes may be applied to prevent erosion on ?nal graded areas during the winter. 6. Permit No. 1101914 The Justice Companies plan to begin reclamation on this permit commencing the beginning of no later than the week of January 13, 2014. A Caterpillar D- 6 bulldozer, Kornatsu 325 excavator, and a 35 ton haul truck with support of an additional bulldozer will be in operation. The pieces of equipment and personnel shall be operated as a unit for not less than 140 hours per month (35 hours per week) for January 2014, the unit will be used for 105 hours. In the event reclamation operations are not commenced by the beginning of February 2014, and due to the fact that no mining has occurred in over 6 months, the Justice Companies shall submit the applicable cost bonds under Va. Code 451?2703 and Item of the AGREEMENT for this permit. Temporary seeding will be conducted if directed by the DMLR Inspector on reclaimed areas until such time that permanent seeding may be accomplished (commencing March 15th). The anticipated completion deadline of reclamation is the end of June 2015, as additional reserves remain. If due to unforeseen events such as adverse weather or safety issues at this site, the Justice Companies will immediately (within ?ve working days) submit to DMME an explanation of the events that caused the delay(s) and an anticipated timeframe to restart reclamation work at the site (due to the unexpected delay) and any impact to the original completion date of July 2014. If deemed necessary for stabilization temporary seed mixes may be applied to prevent erosion on ?nal graded areas during the The Justice Companies shall comply with CEV00083 73 (violation 10f 1) by no later than February 1, 2014 or by any extension date granted by the Inspector. Failure to comply would result in the issuance of the appropriate failure to abate cessation order(s). Compliance Agreement . usticevCompanies Page 19 of 20 The Justice Companies shall comply with CEV00088 82 (violation 1 of 1) by no later than March 24, 2014 or by any extension date granted by the Inspector. Failure to comply would result in the issuance of the appropriate failure to abate cessation order. 7. Permit No. 1101954 As no mining has occurred on this permit since March 2013, the Justice Companies shall submit the applicable cost bond under Va. Code 451-2703 and Item of the AGREEMENT for this permit. The cost bond shall remain in place until the Justice Companies dedicate at least a 155 Komatsu Tractor and Caterpillar for reclamation and operate such as a unit for not less than 140 hours per month (35 hours per week). Temporary seeding will be conducted if directed by the DMLR Inspector on reclaimed areas until such time that permanent seeding may be accomplished (commencing March 15th). The anticipated completion deadline of reclamation is the end of June 2015, as additional reserves remain. If due to unforeseen events such as adverse weather or safety issues at this site, the Justice Companies will immediately (within ?ve working days) submit to an explanation of the events that caused the delay(s) and an anticipated timeframe to restart reclamation work at the site (due to the unexpected delay) and any impact to the original completion date of July 2014. If deemed necessary for stabilization temporary seed mixes may be applied to prevent erosion on ?nal graded areas during the Winter. 8. Permit No. 1502057 - As no mining has occurred on this permit since May 2013, the Justice Companies shall submit the applicable cost bond under Va. Code 451-2703 and Item of the AGREEMENT for this permit. The cost bond shall remain in place until the Justice Companies dedicate at least a Caterpillar and 320 Komatsu long-arm excavator for reclamation and operate such as a unit for not less than 140 hours per month (35 hours per week). Temporary seeding will be conducted if directed by the DMLR Inspector on reclaimed areas until such time that permanent seeding may be accomplished (commencing March 15th). The anticipated completion deadline of reclamation is the end of June 2015, as additional reserves remain. If due to unforeseen events such as adverse weather or safety issues at this site, the Justice Companies will immediately (within five working days) submit to DMME an explanation of the events that caused the delay(s) and an anticipated timeframe to restart reclamation work at the site (due to the unexpected delay) and any impact to the original completion date of July 2014. If deemed necessary for stabilization temporary seed mixes may be applied to prevent erosion on ?nal graded areas during the wmter. 9. Permit Nos. 1602071, and 1602078 The Justice Companies intend to utilize existing preparation plant equipment and support equipment from the active surface operation in addition to a Caterpillar bulldozer (with a Komatsu 155 bulldozer to follow) to reclaim these permits and Permit No. 1602068. The company anticipates that it will take 16 months to complete reclamation. The company anticipates beginning reclamation work no later than the week of January 6, 2014 and completing by April 2015. Compliance Agreement Justice Companies Page 20 of 20 In the event reclamation operations are not commenced by the beginning of February 2014, and due to the fact that no mining has occurred in over 6 months on Permit Nos. 1602071 and 1602078, the Justice Companies shall submit the applicable cost bonds under Va. Code 45.1-270.3 and Item of the AGREEMENT for these permits. Temporary seeding will be conducted if directed by the DMLR Inspector on reclaimed areas until such time that permanent seeding may be accomplished (commencing March 15th). The anticipated completion deadline of reclamation is the end of July, 2014. If due to unforeseen events such as adverse weather or safety issues at this site, the Justice Companies will immediately (within ?ve working days) submit to DMME an explanation of the events that caused the delay(s) and an anticipated timeframe to restart reclamation work at the site (due to the unexpected delay) and any impact to the original completion date of July 2014. If deemed necessary for stabilization temporary seed mixes may be applied to prevent erosion on ?nal graded areas during the winter.