COMMONWEALTH OF KENTUCKY ENERGY AND ENVIRONMENT CABINET Oftlc3 aT Adffllnl~lr;lllv@ 'rlaa'ongs FILE NOS. ACC-43377 AOF-45466 AOF-45467 CBA-29690 CCA-28054 CCA-28056 CCA-43221 CCA-44919 COA-41939 DSMII002 FCO-42233 FCO-42739 FCO-43377 FCO-43422 FCO-43801 FCO-43801A FCO-43802 FCO-43804 FCO-43805 FCO-43806 FCO-43807 FCO-44036 FCO-44128 FCO-44130 FCO-44137 FCO-44138 FCO-44140 FCO-44141 FCO-44189 FCO-44190 FCO-44191 FCO-44192 FCO-44223 FCO-44265 FCO-44329 FCO-44330 FCO-44332 FCO-44332A FCO-44334 FCO-44357 FCO-44359 FCO-44359A FCO-44415 FCO-44430 FCO-44431 FCO-44432 FCO-44433 FCO-44434 FCO-44439 FCO-44448 FCO-44449 FCO-44450 FCO-44451 FCO-44452 FCO-44470 FCO-44489 FCO-44490 FCO-44491 FCO-44523 FCO-44526 FCO-44554 FCO-44555 FCO-44556 FCO-44623 FCO-44624 FCO-44663 FCO-44676 FCO-44727 FCO-44728 FCO-44729 FCO-44729A FCO-44730 FCO-44749 FCO-44750 FCO-44751 FCO-44752 FCO-44753 FCO-44754 FCO-44755 FCO-44756 FCO-44757 FCO-44758 FCO-44759 FCO-44760 FCO-44761 FCO-44762 FCO-44772 FCO-44773 FCO-44774 FCO-44777 FCO-44778 FCO-44840 FCO-44843 FCO-44845 FCO-44926 FCO-44930 FCO-44931 FCO-44932 FCO-45051 FCO-45069 FCO-45070 FCO-45071 FCO-45072 FCO-45072A FCO-45073 FCO-45073A FCO-45074 FCO-45088 FCO-45152 FCO-45153 FCO-45488 FCO-45489 FCO-45490 FOV-43421 FOV-43422 FOV-43810 FOV-44036 FOV-44128 FOV-44129 FOV-44133 FOV-44137 FOV-44140 FOV-44142 1 k\UG 15 FOV-44188 FOV-44193 FOV-44194 FOV-44195 FOV-44196 FOV-44197 FOV-44198 FOV-44199 FOV-44200 FOV-44201 FOV-44203 FOV-44209 FOV-44213 FOV-44214 FOV-44216 FOV-44218 FOV-44219 FOV-44220 FOV-44224 FOV-44255 FOV-44259 FOV-44260 FOV-44261 FOV-44262 FOV-44263 FOV-44264 FOV-44265 FOV-44267 FOV-44268 FOV-44269 FOV-44328 FOV-44331 FOV-44332 FOV-44333 FOV-44354 FOV-44355 FOV-44356 FOV-44357 FOV-44358 FOV-44363 FOV-44365 FOV-44370 FOV-44415 FOV-44430 FOV-44431 FOV-44432 FOV-44433 FOV-44434 FOV-44435 FOV-44436 FOV-44437 FOV-44438 FOV-44439 FOV-44440 FOV-44441 FOV-44442 FOV-44443 FOV-44444 FOV-44445 FOV-44446 FOV-44447 FOV-44448 FOV-44453 FOV-44471 FOV-44472 FOV-44473 FOV-44474 FOV-44489 FOV-44490 FOV-44491 FOV-44517 FOV-44518 FOV-44519 FOV-44520 FOV-44521 FOV-44522 FOV-44523 FOV-44524 FOV-44525 FOV-44526 FOV-44527 FOV-44528 FOV-44529 FOV-44554 FOV-44555 FOV-44608 FOV-44609 FOV-44611 FOV-44612 FOV-44624 FOV-44625 FOV-44626 FOV-44627 FOV-44628 FOV-44663 FOV-44674 FOV-44675 FOV-44676 FOV-44677 FOV-44678 FOV-44679 FOV-44727 FOV-44728 FOV-44729 FOV-44732 FOV-44738 FOV-44739 FOV-44740 FOV-44741 FOV-44742 FOV-44745 FOV-44746 FOV-44747 FOV-44748 FOV-44763 FOV-44775 FOV-44776 FOV-44842 FOV-44844 PAC-42959 PAC- 44441 PAC-43402 PAC-43421 PAC-43801 PAC-43802 PAC-43804 PAC-43805 PAC-43806 PAC-43807 PAC-44039 PAC-44133 PAC-44138 PAC-44169 PAC-44189 PAC-44190 PAC-44191 PAC-44192 PAC-44193 PAC-44194 PAC-44197 PAC-44198 PAC-44199 PAC-44200 PAC-44209 PAC-44210 PAC-44213 PAC-44214 PAC-44216 PAC-44218 PAC-44219 PAC-44220 PAC-44223 PAC-44224 PAC-44255 PAC-44259 PAC-44260 PAC-44261 PAC-44262 PAC-44263 PAC-44264 PAC-44265 PAC-44267 PAC-44268 PAC-44269 PAC-44300 PAC-44324 PAC-44328 PAC-44332 PAC-44334 PAC-44336 PAC-44355 PAC-44356 PAC-44357 PAC-44358 PAC-44362 PAC-44363 PAC-44365 PAC-44370 PAC-44415 PAC-44431 PAC-44432 PAC-44433 PAC-44434 PAC-44436 PAC-44438 PAC-44439 PAC-44440 PAC-44443 PAC-44444 PAC-44446 PAC-44447 PAC-44448 PAC-44449 PAC-44451 PAC-44452 PAC-44453 PAC-44471 PAC-44472 PAC-44474 PAC-44489 PAC-44490 PAC-44491 PAC-44499 PAC-44517 PAC-44518 PAC-44519 PAC-44520 PAC-44521 PAC-44522 PAC-44523 PAC-44524 PAC-44525 PAC-44526 PAC-44527 PAC-44554 PAC-44562 PAC-44593 PAC-44609 PAC-44611 PAC-44612 2 PAC-44624 PAC-44639 PAC-44663 PAC-44674 PAC-44676 PAC-44678 PAC-44679 PAC-44681 PAC-44727 PAC-44728 PAC-44730 PAC-44732 PAC-44739 PAC-44740 PAC-44741 PAC-44742 PAC-44745 PAC-44746 PAC-44748 PAC-44749 PAC-44750 PAC-4475:1 PAC-44752 PAC-44753 PAC-44754 PAC-44755 PAC-44756 PAC-44757 PAC-44758 PAC-44759 PAC-44760 PAC-44761 PAC-44762 PAC-44763 PAC-44772 PAC-44773 PAC-44774 PAC-44775 PAC-44776 PAC-44778 PAC-44780 PAC-44840 PAC-44842 PAC-44844 PAC-44845 PAC-44925 PAC-44926 PAC-44930 PAC-44931 PAC-44932 PAC-44985 PAC-44996 PAC-44998 PAC-44999 PAC-45000 PAC-45001 PAC-45004 PAC-45012 PAC-45013 PAC-45014 PAC-45019 PAC-45020 PAC-45021 PAC-45022 PAC-45023 PAC-45024 PAC-45025 PAC-45026 PAC-45027 PAC-45028 PAC-45029 PAC-45030 PAC-45040 PAC-45041 PAC-45050 PAC-45051 PAC-45055 PAC-45069 PAC-45070 PAC-45071 PAC-45072 PAC-45073 PAC-45074 PAC-45087 PAC-45118 PAC-45125 PAC-45126 PAC-45127 PAC-45128 PAC-45129 PAC-45130 PAC-45138 PAC-45145 PAC-45146 PAC-45152 PAC-45153 PAC-45158 PAC-45170 PAC-45264 PAC-45272 PAC-45298 PAC-45321 PAC-45323 PAC-45343 PAC-45344 PAC-45346 PAC-45354 PAC-45356 PAC-45357 PAC-45358 PAC-45367 PAC-45368 PAC-45369 PAC-45370 PAC-45371 PAC-45372 PAC-45374 PAC-45375 PAC-45376 PAC-45377 PAC-45382 PAC-45383 PAC-45384 PAC-45386 PAC-45387 PAC-45389 PAC-45390 PAC-45391 PAC-45392 PAC-45393 PAC-45394 PAC-45400 PAC-45404 PAC-45435 PAC-45438 PAC-45439 PAC-45440 PAC-45441 PAC-45442 PAC-45443 PAC-45444 PAC-45455 PAC-45456 PAC-45485 PAC-45488 PAC-45490 PAC-45493 PAC-45494 PAC-45496 PAC-45497 PAC-45499 PAC-45502 PAC-45533 PAC-45545 PAC-45546 PAC-45547 PAC-45582 PAC-45599 PAC-45600 PAH-42233 PAH-42739 PAH-42958 PAH-42959 PAH-43377 PAH-43422 PAH-43971 PAH-44036 PAH-44038 PAH-44123 PAH-44129 PAH-44130 PAH-44137 PAH-44140 PAH-44141 PAH-44142 PAH-44203 PAH-44282 PAH-443 01 PAH-44329 PAH-44330 PAH-44331 PAH-44333 PAH-44354 PAH-44359 PAH-44359A PAH-44361 PAH-44430 PAH-44435 PAH-44442 PAH-44445 PAH-44450 PAH-44463 PAH-44464 PAH-44470 PAH-44473 PAH-44529 PAH-44555 PAH-44556 PAH-44608 PAH-44623 PAH-44627 PAH-44628 PAH-44675 PAH-44729A PAH-44738 PAH-44747 PAH-44777 PAH-44790 PAH-44843 PAH-45052 PAH-45053 PAH-45054 PDH-44670 PDH-44673 PDH-45075 PDH-45075 PHA-44555A TRH-42739 860-0502 860-0503 860-0504 860-0505 860-5337 860-5338 860-5339 860-5340 860-5341 860-5342 860-5343 860-5345 860-5346 860-5347 860-5349 860-5350 860-5351 860-8020 860-9015 860-9016 866-5151 866-5152 867-0498 877-0206 877-0207 898-0775 898-0861 898-0881 898-0882 898-0883 898-0884 PERMIT NOS. 813-0260 813-0354 813-0363 813-5032 813-7036 813-8028 813-8032 813-8033 836-5580 848-0221 848-0230 848-0234 848-0249 848-0264 848-0270 848-0273 848-0274 848-0275 848-0277 848-0278 848-0282 848-0283 848-0315 848-0316 848-0317 848-5459 848-5460 848-5462 848-5463 848-5485 848-5505 848-5506 848-5507 848-5508 848-5509 848-5510 848-5511 848-5512 848-5513 848-7024 848-7027 848-7036 848-8069 848-8076 848-8082 848-9022 848-9025 848-9028 3 NON-COMPLIANCE NOS. NC 23-2443 NC 23-0113 NC 23-0222 NC 23-0228 NC 23-0229 NC 23-0392 NC 23-0508 NC 23-0516 NC 23-0609 NC 23-0610 NC 23-0865 NC 23-0934 NC 23-0935 NC 23-0936 NC 23-0937 NC 23-1064 NC 23-1087 NC 23-1375 NC 23-1388 NC 23-1395 NC 23-1409 NC 23-1513 NC 23-1531 NC 23-1563 NC 23-1570 NC 23-1576 NC 23-1582 NC 23-1692 NC 23-1729 NC 23-1798 NC 23-1800 NC 23-1809 NC 23-1828 NC 23-1833 NC 23-1835 NC 23-1880 NC 23-1922 NC 23-1935 NC 23-1936 NC 23-1951 NC 23-1952 NC 23-1961 NC 23-1964 NC 23-1973 NC 23-1974 NC 23-1976 NC 23-1978 NC 23-1992 NC 23-1993 NC 23-2019 NC 23-2020 NC 23-2023 NC 23-2037 NC 23-2039 NC 23-2040 NC 23-2041 NC 23-2046 NC 23-2056 NC 23-2060 NC 23-2075 NC 23-2076 NC 23-2077 NC 23-2078 NC 23-2094 NC 23-2099 NC 23-2111 NC 23-2155 NC 23-2164 NC 23-2165 NC 23-2166 NC 23-2167 NC 23-2267 NC 23-2282 NC 23-2283 NC 23-2285 NC 23-2303 NC 23-2305 NC 23-2338 NC 23-2339 NC 23-2344 NC 23-2345 NC 23-2346 NC 23-2361 NC 23-2365 NC 23-2366 NC 23-2367 NC 23-2375 NC 23-2378 NC 23-2387 NC 23-2388 NC 23-2441 NC 23-2442 NC 23-2444 NC 23-2445 NC 23-2463 NC 23-2464 NC 23-2476 NC 23-2503 NC 23-2521 NC23-2560 NC 23-2561 NC 23-2564 NC 23-2565 NC 23-2572 NC 23-2573 NC 23-2574 NC 23-2578 NC 23-2598 NC 23-2621 NC 23-2623; NC 23-2711 NC 23-2712 NC 23-2741 NC 23-2742 NC 23-2743 NC 23-2744 NC 23-2745 NC 23-2746 NC 23-2747 NC 23-2748 NC 23-2749 NC 23-2750 NC 23-2751 NC 23-2752 NC 23-2753 NC 23-2754 NC23-2755 NC 23-2756 NC 23-2757 NC 23-2758 NC 23-2760 NC 23-2761 4 NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC 23-2762 23-2763 23-2764 23-2765 23-2849 23-2850 23-2851 23-2852 23-2853 23-2854 23-2855 23-2857 23-2858 23-2860 23-2861 23-2862 23-2863 23-2864 23-2865 23-2866 23-2927 23-2957 23-2967 23-2973 23-2974 23-2975 23-2976 23-2977 23-2978 23-2979 23-2980 23-2981 23-2982 23-2983 23-2984 23-2985 23-2986 23-2987 23-2993 23-2994 23-2997 23-2998 23-3011 23-3020 NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC 23-3025 23-3026 23-3027 23-3028 23-3029 23-3030 23-3031 23-3032 23-3050 23-3051 23-3052 23-3053 23-3054 23-3055 23-3056 23-3057 23-3058 23-3059 23-3060 23-3081 23-3082 23-3106 23-3107 23-3108 23-3109 23-3110 23-3111 23-3112 23-3113 23-3114 23-3115 23-3116 23-3117 23-3118 23-3119 23-3120 23-3121 23-3122 23-3123 23-3144 23-3145 23-3146 23-3150 23-3151 NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC 23-3168 23-3182 23-3183 23-3184 23-3185 23-3186 23-3187 23-3188 43-1046 43-1312 43-1535 43-1591 43-1762 43-1785 43-2003 43-2008 43-2069 43-2190 43-2465 43-2721 43-2783 43-2805 43-2815 43-2816 43-2853 43-2858 43-2859 43-2875 43-2877 43-2911 43-2912 43-2913 43-2920 43-2924 43-2939 43-2942 43-2947 43-2986 43-2992 43-2993 43-3014 43-3058 NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC 43-3063 43-3067 43-3068 43-3073 43-3093 43-3095 43-3096 43-3097 43-3098 43-3099 43-3100 43-3106 43-3107 43-3121 43-3122 43-3123 43-3124 43-3128 43-3129 43-3130 43-3131 43-3132 43-3133 43-3153 43-3154 43-3171 43-3195 43-3210 43-3211 43-3212 43-3226 43-3227 43-3228 43-3229 43-3230 43-3231 43-3233 43-3234 43-3235 43-3236 43-3248 43-3250 NC 43-3251 NC 43-3272 NC 43-3273 NC 43-3412 NC 43-3417 NC 43-3419 NC 43-3420 NC 43-3421 NC 43-3422 NC 43-3423 NC 43-3424 NC 43-3435 NC 43-3539 NC 43-3544 NC 53-1328 NC 53-1346 NC 53-1347 NC 53-1775 NC 53-1813 NC 53-2026 NC 53-2038 NC 53-2053 NC 53-2056 NC 53-2072 NC 53-2260 NC 53-2393 NC 53-2664 NC 53-3048 NC 53-3244 NC 53-3276 NC 53-3278 NC 53-3282 NC 53-3286 NC 53-3287 NC 53-3288 NC 53-3289 NC 53-3291 NC 53-3328 NC 53-3378 NC 53-3381 NC 53-3469 NC 53-3476 5 NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC 53-3532 53-3559 53-3577 53-3583 53-3612 53-3645 53-3649 53-3652 53-3654 53-3670 53-3688 53-3760 53-3761 53-3764 53-3765 53-3766 53-3767 53-3768 53-3769 53-3770 53-3773 53-3774 53-3778 53-3789 53-3790 53-3847 53-3853 53-3996 63-0798 63-1959 63-2001 63-2024 63-2025 63-2111 63-2131 63-2157 63-2163 63-2289 63-2317 63-2318 63-2326 63-2340 NC 63-2408 NC 63-2445 NC 63-2446 NC 63-2447 NC 63-2448 NC 63-2468 NC 63-2504 NC 63-2508 NC 63-2512 NC 63-2521 NC 63-2546 NC 63-2550 NC 63-2554 NC 63-2558 NC 63-2579 NC 63-2580 NC 63-2594 NC 63-2596 NC 63-2597 NC 63-2624 NC 63-2640 NC 63-2641 NC 63-2642 NC 63-2643 NC 63-2649 NC 63-2650 NC 63-2663 NC 63-2664 NC 63-2668 NC 63-2707 NC 63-2708 NC 63-2711 NC 63-2712 NC 63-2713 NC 63-2714 NC 63-2741 NC 63-2753 NC 63-2772 NC 63-2786 CESSATION ORDER NOS. CO 23-0031 CO 23-0032 CO 23-0034 CO 23-0035 CO 23-0036 CO 23-0037 CO 23-0038 CO 23-0039 CO 23-0040 CO 23-0041 CO 23-0042 CO 23-0043 CO 23-0044 CO 23-0045 CO 23-0127 CO 23-0128 CO 23-0137 CO 23-0138 CO 23-0139 CO 23-0140 CO 23-0141 CO 23-0142 CO 23-0144 CO 23-0161 CO 23-0162 CO 23-0163 CO 23-0164 CO 23-0165 CO 23-0282 CO 23-0311 CO 23-0368 CO 23-0442 CO 23-0443 CO 23-0444 CO 23-0497 CO 23-0498 CO 23-0499 CO 23-0500 CO 23-0501 CO 23-0502 CO 23-0503 CO 23-0504 CO 23-0505 CO 23-0506 CO 23-0507 CO 23-0508 CO 23-0509 CO 23-0510 CO 23-0511 CO 23-0587 CO 23-0660 CO 23-0661 CO 23-0662 CO 23-0663 CO 23-0664 CO 23-0665 CO 23-0666 CO 23-0667 CO 23-0668 CO 23-0669 CO 23-0670 CO 23-0671 CO 23-0697 CO 23-0698 CO 23-0699 CO 23-0705 CO 23-0706 CO 23-0707 CO 23-0708 CO 23-0709 CO 23-0710 CO 23-0711 CO 23-0712 CO 23-0713 CO 43-0017 CO 43-0018 CO 43-0405 CO 43-0407 CO 43-0428 CO 43-0429 CO 43-0510 CO 43-0514 CO 43-0569 CO 43-0587 6 CO 43-0595 CO 43-0620 CO 43-0621 CO 43-0726 CO 43-0727 CO 43-0850 CO 43-0851 CO 43-0859 CO 43-0860 CO 43-0970 CO 43-1037 CO 53-0078 CO 53-0079 CO 53-0107 CO 53-0108 CO 53-0109 CO 53-0338 CO 53-0393 CO 53-0394 CO 53-0415 CO 53-0416 CO 53-0485 CO 53-0486 CO 53-0487 CO 53-0489 CO 53-0490 CO 53-0491 CO 53-0526 CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO 53-0530 53-0534 53-0550 53-0570 53-0868 63-0044 63-0045 63-0046 63-0047 63-0048 63-0049 63-0050 63-0205 63-0259 63-0296 63-0297 63-0298 63-0393 63-0440 63-0441 63-0443 63-0497 63-0539 63-0544 63-0599 A&G COAL COMPANY, BEECH CREEK COAL, FOUR STAR RESOURCES, GREENTHORN, LLC, INFINITY ENERGY, KENTUCKY FUEL CORPORATION, SEQUOIA ENERGY, STRONG BROTHERS MINING, and VIRGINIA FUEL CORPORATION VS. PETITIONERS AGREED ORDER RESPONDENT ENERGY AND ENVIRONMENT CABINET I. IDENTIFICATION OF PARTIES WHEREAS, the Respondent, the Energy and Environment Cabinet, Department for Natural Resources (the "Cabinet"), is charged with the statutory duty of enforcing KRS Chapter 350 and the regulations adopted pursuant thereto; WHEREAS, the companies identified in the caption above and described below are referred to collectively as the Justice entities (hereinafter "Justice" or "Petitioners") because each company shares common ownership or control links with Mr. James C. Justice, II, or has become closely associated with such a company on certain Kentucky underground or surface mining permits. II. SUBJECT COMPANIES, PERMITS & ENFORCEMENT ACTIONS a. A&G COAL CORPORATION WHEREAS, the Petitioner, A & G Coal Corporation (hereinafter "A & G") is a Virginia corporation with a known address of Post Office Box 1010, Wise, Virginia 24293, a principal office at 302 South Jefferson Street, Roanoke, Virginia 24011, and a registered agent of CT Corporation, 306 West Main Street, Suite 512, Frankfort, Kentucky 40601. A & G is authorized to conduct coal mining operations in the Commonwealth of Kentucky, and at all times pertinent to these actions transacted business in the Commonwealth of Kentucky; 7 WHEREAS, A & G is authorized to conduct coal mining operations through the Cabinet's issuance of Permit No. 867-0498, and is the current permittee and operator of this permit; WHEREAS, the following Notices of Non-Compliance (hereinafter "NCs") and Cessation Orders (hereinafter "COs") have been issued for violations on Permit No. 867-0498: NC No. 53-3559 and CO No. 53-0393 (the subject ofPAC/PAH/FCO/FOV-44137 and Franldin Circuit Court Action 14-CI-00847), NC No. 53-3645 and CO No. 53-0534 (the subject of PAC/FCO/FOV-44663), NC No. 53-3652 and CO No. 53-0550 (the subject of PAC/FCO45071), NC No. 53-3847 and CO No. 53-0570 (the subject of PAC/FCO-45490), NC No. 533048, NC No. 53-3853 (the subject ofPAC-45533), NC No. 53-3583 and CO No. 53-0394 (the subject ofPAC/FCO/FOV-44357 and Franklin Circuit Court Action 14-CI-00847), NC No. 533649 and CO No. 53-0530 (the subject of PAC/FCO-44845), NC No. 53-3670 (the subject of PAC-45055), and NC No. 53-3688 (the subject ofPAC-45138); b. BEECH CREEK COAL (KENTUCKY FUEL, OPERATOR) WHEREAS, Beech Creek Coal (hereinafter "Beech Creek") is a Kentucky limited liability company with a known address of 32601 Highway 194 E, Phelps, Kentucky 41533, and a registered agent of W. Keith Hall at that address. Beech Creek is authorized to conduct coal mining operations in the Commonwealth of Kentucky, and at all times pertinent to these actions transacted business in the Commonwealth of Kentucky; WHEREAS, Beech Creek is authorized to conduct coal milling operations through the Cabinet's issuance of Permit No. 898-0775; WHEREAS, the approved operator on Permit No. 898-0775 is Kentucky Fuel Corporation, a Justice entity; 8 WHEREAS, the following NCs and COs have been issued for violations on Permit No. 898-0775: NC No. 53-3282 and CO No. 53-0490 (the subject ofPACIFCO-44778); NC No. 53-3766; NC No. 53-3774; NC No. 53-3996; NC No. 53-1813 (the subject of PACIPAH-44790); NC No. 53-3760 and CO No. 53-0489 (the subject of PAC/PAH/FCO- 44777); NC No. 53-3761 (the subject of PACIFOV/PAH-44776); NC No. 53-3789; NC No. 533790; NC No. 53-2038 and CO No. 53-0868 (the subject of PACIPAH -44038); NC No. 532664 and CO No. 53-0078 (the subject of PAC-44919); NC No. 53-1347 (the subject of PACIPAH/FOV-44203); NC No. 53-3276 (the subject of PAC/PAHlFOV-44354); and NC No. 53-3612 (the subject ofPAC/PAH/FOV-44627); c. FOUR STAR RESOURCES WHEREAS, the Petitioner, Four Star Resources (hereinafter "Four Star") is a Kentucky limited liability company with a known address of Post Office Box 838, Middlesboro, Kentucky 40965, a principal office at 302 South Jefferson Street, Roanoke, Virginia 24011, and a registered agent of CT Corporation, 306 West Main Street, Suite 512, Frankfort, Kentucky 40601. Four Star is authorized to conduct coal mining operations in the Commonwealth of Kentucky, and at all times pertinent to these actions transacted business in the Commonwealth of Kentucky; WHEREAS, Four Star is authorized to conduct coal mining operations through the Cabinet's issuance of Permit Nos. 848-0249, 848-0277, 848-0278, and 848-7027, and is the current permittee and operator on these permits; WHEREAS, the following NCs and COs have been issued for violations on Permit No. 848-0249: NC No. 23-2564 and CO No. 23-0161 (the subject ofPACIFCO-45072), CO No. 23-0164, and CO No. 23-0311 (the subject of FCO-45072A), NC No. 23-2094 and CO 9 No. 23-0044 (the subject of PAC/PAH/FCO-44843), NC No. 23-1576 (the subject of PACIPAH/FOV-44142), NC No. 23-2574 (the subject of PAC-45369), NC No. 23-2711 (the subject ofPAC-45597), NC No. 23-2099 (the subject ofPAC-44925), NC No. 23-2443 and CO No. 23-0038 (the subject of PAC/FCO/FOV-44489), NC No. 23-2503 (the subject of PACIFOV44679), and NC No. 23-2560 and CO No. 23-0041 (the subject ofPAC/FCO-44773); WHEREAS, the following NCs and COs have been issued for violations on Permit No. 848-0277: NC No. 23-2565 and CO No. 23-0163 (the subject ofPACIFCO-45153), NC No. 23-2572 (the subject ofPAC-45371), NC No. 23-2997 (the subject ofPAC-45588), NC No. 23-2444 and CO No. 23-0039 (the subject ofPAC/FCO/FOV-44490), and NC No. 23-2521 and CO No. 23-0042 (the subject ofPAC/FCO-44774); WHEREAS, the following NCs and COs have been issued for violations on Permit No. 848-0278: NC No. 23-2573 (the subject of PAC-45370), NC No. 23-2712 (the subject of PAC-45595), NC No. 23-2442 and CO No. 23-0040 (the subject of PAC/FCOIFOV44491), and NC No. 23-2561 and CO No. 23-0043 (the subject ofPAC/FCO-44772); WHEREAS, the following NCs and COs have been issued for violations on Permit No. 848-7027: NC No. 23-2441 and CO No. 23-0162 (the subject of PAC/FCOIFOV- 44415), and NC No. 23-2623; d. GREENTHORN, LLC WHEREAS, the Petitioner, Greenthorn, LLC (hereinafter "Greenthorn") is an inactive Kentucky limited liability company with a known address of Post Office Box 340, London, Kentucky, 40743, and a registered agent of William G. Brown at 420 Tobacco Road, London, Kentucky 40741. Greenthorn was authorized to conduct coal mining operations in the 10 Commonwealth of Kentucky and at all times pertinent to this action transacted business in the Commonwealth of Kentucky. WHEREAS, was authorized to conduct coal mmmg operations through the Cabinet's issuance of Permit No. 898-0861. Permit No. 898-0861 was subsequently transferred from Greenthom to Kentucky Fuel Corporation, becoming Permit No. 898-0884. Prior to the transfer, the approved operator of this permit was Kentucky Fuel; WHEREAS, the following NCs and COs have been issued for violations on Permit No. 898-0861: NC No. 53-1775 and CO No. 53-0079 (the subject of PACIPAHlFCO44130); NC No. 53-2393 and CO No. 53-0526 (the subject ofPACIPAHlFCO-44556); NC No. 53-1328 (the subject of PACIPAHlFOV-44129); NC No. 53-3291 (the subject of PAC; FOV44216); NC No. 53-3381 (the subject of PACIPAHlFOV-44445; and NC No. 53-3577 (the subject ofPACIPAHlFOV-44628); e. INFINITY ENERGY, INC WHEREAS, the Petitioner, Infinity Energy, Inc. (hereinafter "Infinity") is a Kentucky corporation with a known address of Post Office Box 838, Middlesboro, Kentucky 40965, a principal office at 302 South Jefferson Street, Roanoke, Virginia 24011, and a registered agent of CT Corporation, 306 West Main Street, Suite 512, Frankfort, Kentucky 40601. Infinity Energy is authorized to conduct coal mining operations in the Commonwealth of Kentucky, and at all times pertinent to this action transacted business in the Commonwealth of Kentucky. WHEREAS, Infinity is authorized to conduct coal mining operations in the Commonwealth of Kentucky through the Cabinet's issuance of Permit Nos. 848-0221, 848-0282, 11 and 848-0283, and at all times pertinent to this action transacted business in the Commonwealth of Kentucky; WHEREAS, Infinity was authorized to conduct coal mining operations in the Commonwealth of Kentucky through the Cabinet's issuance of Permit Nos. 848-0234 and 8480264. Both of these permits have been granted complete bond releases; WHEREAS, the following NCs and COs have been issued for violations on Permit No. 848-0221: NC No. 23-3025 (the subject of PAC-45382) and NC No. 23-3030 (the subject ofPAC-45599); WHEREAS, the following NCs and COs have been issued for violations on Permit No. 848-0234: NC No. 23-1835 (the subject ofPAC/PAH-44463); NC No. 23-1952 (the subject ofPAC/PAH-44464); NC No. 23-0935 (the subject ofPAC/PAH/FOV-44331); NC No. 23-0229 and CO No. 23-0139 (the subject of PAC-43906); NC No. 23-1729 and CO No. 230138 (the subject of PAC/FCO-43807); NC No. 23-1833 and CO No. 23-0140 (the subject of PAC-43981); and NC No. 23-0222 and CO No. 23-0137 (the subject ofPAC/FCO-43806); WHEREAS, the following NCs and COs have been issued for violations on Permit No. 848-0264: NC No. 23-0516 and CO No. 23-0141 (the subject of PAC-44086); NC No. 23-0865 and CO No. 23-0128 (the subject of PAC/FCO-43805); NC No. 23-0228 and CO No. 23-0142 (the subject of PAC/FCO-44223); NC No. 23-1692 and CO No. 23-0127 (the subject ofPAC/FCO-43804); NC No. 23-1880 (the subject ofPAC/PAH-44282); and NC No. 23-0934 (the subject of PAC/PAH/FOV-44333); WHEREAS, the following NCs and COs have been issued for violations on Permit No. 848-0282: NC No. 23-3026 (the subject of PAC-45375); NC No. 23-2375 (the 12 subject of PACIFOV-44677); NC No. 23-3031 (the subject of PAC-45600); and NC No. 233028 (the subject of PAC-45496); WHEREAS, the following NCs and COs have been issued for violations on Permit No. 848-0283: NC No. 23-2303 and CO No. 23-0144 (the subject of PAC/FCOIFOV44526); NC No. 23-2305 (the subject of PACIFOV-44678); NC No. 23-3027 (the subject of PAC-45376); NC No. 23-3032 (the subject ofPAC-45582); and NC No. 23-3029 (the subject of PAC-45497); f. KENTUCKY FUEL CORPORATION WHEREAS, the Petitioner, Kentucky Fuel Corporation (hereinafter "Kentucky Fuel" or "KFC") is a Delaware corporation with a known address of Post Office Box 130, Mousie, Kentucky, 41839, a principal office 302 South Jefferson Street, Roanoke, Virginia 24011, and a registered agent of CT Corporation, 306 West Main Street, Suite 512, Frankfort, Kentucky 40601. WHEREAS, Kentucky Fuel is authorized to conduct coal mining operations in the Commonwealth of Kentucky through the Cabinet's issuance of Permit Nos. 813-0354,8130363,813-5032,813-7036,813-8028, 813-8032, 813-8033, 836-5580, 860-0502, 860-0503, 8600504, 860-0505, 860-5337, 860-5339, 860-5340, 860-5342, 860-5343, 860-5345, 860-5346, 8605347, 860-5349,860-5350,860-5338, 860-5341,860-5351,860-8020, 860-9015,860-9016,8770206, 877-0207, 898-0881, 898-0882, 898-0883, and 898-0884, and at all times pertinent to this action transacted business in the Commonwealth of Kentucky. WHEREAS, the following NCs have been issued for violations on Permit No. 813-0363: NC No. 63-2446 (the subject of PACIFOV-44447) and NC No. 63-2714 (the subject of PAC-44998); 13 WHEREAS, the following NCs have been issued for violations on Permit No. 813-5032: NC No. 63-2707 (the subject of PAC/FOV-44775), NC No. 63-2317 (the subject of PAC/FOV-44441), and NC No. 63-2713 (the subject ofPAC-44999); WHEREAS, the following NCs and COs have been issued for violations on Permit No. 813-7036: NC No. 63-2624 (the subject of PAC/FOV-44740) and CO No. 63-0047 (the subject ofPAC/FOV-44740), NC No. 63-2554 and CO No. 43-0970, NC No. 63-2504 (the subject ofPAC-45400), NC No. 63-2447 (the subject ofPAC/FOV-44444) and NC No. 63-2772 (the subject ofPAC-45004); WHEREAS, the following NCs have been issued for violations on Permit No. 813-8028: NC No. 63-2024 (the subject of PAC/PAH/FOV-44442) and NC No. 63-2642 (the subject ofPAC-45545); WHEREAS, the following NCs have been issued for violations on Permit No. 836-5580: NC No. 43-3014 and NC No. 43-2986 (the subject ofPAC-44362); WHEREAS, the following NCs and COs have been issued for violations on Permit No. 813-8032: NC No. 63-2663 (the subject ofPAC/FOV-44741) and CO No. 63-0048 (the subject ofPAC-44741), NC No. 63-2448 (the subject ofPAC-44780), NC No. 63-2512 (the subject ofPAC-44562), NC No. 63-2546 and CO No. 63-0044 and CO No. 63-0045 (the subject ofPAC/FCO/FOV-44624), NC No. 63-2708 (the subject ofPAC/FOV-44844); NC No. 63-2786 and CO No. 63-0050 and CO No. 63-0205 (the subject of PAC-44985); NC No. 63-2468 (the subject of PAC-45272); NC No. 63-2318 (the subject of PAC-44443); NC 63-2579 and CO No. 63-0046 (the subject of PAC/FOV -44732); NC No. 63-2580 (the subject of FOV/PAC-44739); NC No. 63-2711 (the subject ofPAC-45000); NC No. 63:-2163 (the subject ofPAC-45050); 14 WHEREAS, the following NCs and COs have been issued for violations on Permit No. 813-8033: NC No. 63-2664 and CO No. 63-0049 (the subject ofPAC/FOV-44742); NC No. 63-2340 (the subject of PAC/FOV -44446); and NC 63-2712 (the subject of PAC/FOV45001); WHEREAS, the following NCs and COs have been issued for violations on Permit No. 860-5339: NC No. 43-2859 and CO No. 43-0428 (the subject ofPAC/FCO-44449); NC No. 43-3229; and NC No. 43-3128 and CO No. 43-0851 (the subject of PAC/FOV/FCO44433); WHEREAS, the following NCs have been issued for violations on Permit No. 860-0503: NC No. 43-3131 (the subject ofPAC/FOV-44437); NC No. 43-3226 (the subject of PAC-45125); NC No. 43-3227 (the subject of PAC-45343), NC No. 43-3235, and NC 43-2913 (the subject ofPAC-44593); WHEREAS, the following NCs and COs have been issued for violations on Permit No. 860-0502: NC No. 43-3419; NC No. 43-2816 (the subject ofPAC-44169); NC No. 43-3100 (the subject of PAC/FOV -44263), and NC No. 43-3153 and CO No. 43-0860 (the subject ofPAC/FCO/FOV-44439); WHEREAS, the following NCs have been issued for violations on Permit No. 860-0504: NC No. 43-3423, NC No. 43-3122 (the subject ofPAC/FOV-44267); and NC No. 433171 (the subject ofPAC/FOV-44519); WHEREAS, the following NCs have been issued for violations on Permit No. 860-5343: NC No. 43-3250 and NC No. 43-2911 (the subject ofPAC/FOV-44214); WHEREAS, the following NCs have been issued for violations on Permit No. 860-5337: NC No. 43-3420 and NC No. 43-3099 (the subject ofPAC/FOV-44262); 15 WHEREAS, the following NC has been issued for violations on Permit No. 8605338: NC No. 43-3073; WHEREAS, the following NC has been issued for violations on Permit No. 8605341: NC No. 43-3236; WHEREAS, the following NCs have been issued for violations on Permit No. 860-5340: NC No. 43-3230, NC No. 43-3093 (PACIFOV-44259) and NC No. 43-3211 (the subject ofPACIFOV-44520); WHEREAS, the following NCs have been issued for violations on Permit No. 860-5347: NC No. 43-3231, NC No. 43-3096 (PACIFOV-44260) and NC No. 43-3212 (the subject ofPACIFOV-44521); WHEREAS, the following NCs and COs have been issued for violations on Permit No. 860-0505: NC No. 43-1535 and CO No. 43-0429 (the subject ofPAC/FCO-44451); NC No. 43-1785 and CO No. 43-0405 (the subject of PACIPAH-44361); NC No. 43-2008 and CO No. 43-0407 (the subject of PAC/PAH-44301); NC No. 43-2858 and CO No. 43-0620 (the subject ofPACIPAHIFCO-44450); NC No. 43-3435; NC No. 43-3098 and CO No. 43-0859 (the subject of PACIFCOIFOV-44265); NC No. 43-2805 (the subject of PAC-44300); and NC No. 43-3129 and CO No. 43-0850 (the subject ofPACIFCOIFOV-44434); WHEREAS, the following NCs and COs have been issued for violations on Permit No. 877-0207: NC No. 43-1591 and CO No. 43-0587 (the subject of PACIPAH/FCOIFOV-43422); NC No. 43-2003 and CO No. 43-0569 (the subject ofPACIPAH43971); NC No. 43-3058 and CO No. 43-0727 (the subject of PAC-45170); NC No. 43-3068 (the subject of PAC-45344); NC No. 43-3421; and NC No. 43-2993 and CO No. 43-0595 (the subject ofPACIFCOIFOV-44432); 16 WHEREAS, the following NCs and COs have been issued for violations on Permit No. 898-0881: NC No. 53-3378 and CO No. 53-0338 and CO No. 53-0416 (the subject of PAC/PAH/FCO-44359 and PAH/FCO-44359A); NC No. 53-3770; NC No. 53-3278 and CO No. 53-0486 (the subject of PAC/PAH/FCO/FOV-44430); NC No. 53-3764 (the subject of PAC45041); NC No. 53-2056 (the subject of PAC-45624); NC No. 43-2069 and CO No. 53-0485 (the subject of PAC/FCO/PAH-44623); NC No. 53-3289 (the subject of PAC/PAH-44123); and NC No. 53-3532 (the subject ofPAC-44529); WHEREAS, the following NCs and COs have been issued for violations on Permit No. 898-0882: NC No. 53-3287 and CO No. 53-0107 (the subject of FCO/FOV-44128); NC No. 53-3769; NC No. 53-3778; NC No. 53-1346 and CO No. 53-0487 (the subject of PAC/PAHlFCO/FOV-44140); NC No. 53-3476 and CO No. 53-0491 (the subject ofPAC/FOV44472); NC No. 53-3765 (the subject of PAC-45040); NC No. 53-3244 (the subject of PAC44358); NC No. 53-2072; NC No. 53-3773 (the subject of PAC-45126); and NC No. 53-3469 (the subject ofPAC/PAH/FOV-44473); WHEREAS, the following NCs and COs have been issued for violations on Permit No. 860-9015: NC No. 43-3106 (the subject of PAC-45354); NC No. 43-3248 (the subject of PAC-45493); NC No. 43-3272; NC No. 43-2465 (the subject of PAC/FOV -44268); NC No. 43-2877 (the subject of PAC/FOV-44370); NC No. 43-2853 and CO No. 43-0018 (the subject ofPAC/FOV-44365); and NC No. 43-3063 (the subject ofPAC-44524); WHEREAS, the following NCs and COs have been issued for violations on Permit No. 860-9016: NC No. 43-3107 (the subject of PAC-45346); NC No. 43-3233 (the subject ofPAC-45494); NC No. 43-3273; NC No. 43-1312 (the subject ofPAC-44324); NC No. 43-2721 (the subject of PAC/FOV-44269); NC No. 43-2783 and CO No. 43-0017 (the subject 17 of PACIFCO-44334); NC No. 43-2920 (the subject of PACIFOV-44471), NC No. 43-1762 (the subject ofPACIPAH-42959), and NC No. 43-3095 (the subject ofPACIFOV-44525); WHEREAS, the following NCs and COs have been issued for violations on Permit No. 877-0206: NC No. 43-3067 (the subject of PAC-45298); NC No. 43-3422; NC No. 43-1046 (the subject ofPAC-44639); and NC No. 43-2992 and CO No. 43-0726 (the subject of .PACIFCOIPOV -444~1); WHEREAS, the following NCs and COs have been issued for violations on Permit No. 860-5342: NC No. 43-2815 and CO No. 43-0621 (the subject ofPACIFCO-44452); NC No. 43-3424; NC No. 43-3121 (the subject ofPACIPAH-44264); and NC No. 43-3154 (the subject ofPACIFCO-44440); WHEREAS, the following NCs have been issued for violations on Permit No. 860-5346: NC No. 43-3251, NC No. 43-3123 (PAC-44336) and NC No. 43-3130 (the subject of PACIFOV-44436); WHEREAS, the following NCs have been issued for violations on Permit No. 860-8020: NC No. 43-3228, NC No. 43-3097 (PACIFOV-44261) and NC No. 43-3210 (the subject ofPACIFOV-44522); WHEREAS, the following NCs have been issued for violations on Permit No. 860-5350: NC No. 43-3234, NC No. 43-2912 (PACIFOV-44213) and NC No. 43-3132 (the subject ofPACIFOV-44453); WHEREAS, 'the following NCs and COs have been issued for violations on Permit No. 860-5349: NC No. 43-2939 and CO No. 43-0510 (the subject of PAC/PAHIPCO- 44329); NC No. 43-2947 and CO No. 43-1037 (the subject of PACIFOV-44674); NC No. 43- 18 2942 and CO No. 43-0514 (the subject ofPAC/FCOIFOV-44448); NC No. 43-3539 (the subject ofPAC-44321); and NC No. 43-3544; WHEREAS, the following NCs have been issued for violations on Permit No. 860-5351: NC No. 43-3417, NC No. 43-3133 (PACIFOV-44438) and NC No. 43-3124 (the subject ofP AC/FOV-44328); WHEREAS, the following NCs have been issued for violations on Permit No. 860-5345: NC No. 43-3412, NC No. 43-2190 (PACIFOV-43421), NC No. 43-2875 (PACIFOV44133), NC No. 43-2924 (PACIPOV-44255), and NC No. 43-3195 (the subject of PAC/FOV44518); WHEREAS, the following NCs and COs have been issued for violations on Permit No. 898-0883: NC No. 53-2053 and CO No. 53-0109 (the subject ofPACIPAH/FCO44330); NC No. 53-3767; NC No. 53-3286 and CO No. 53-0415 (the subject ofPACIPAH/FCO44470); NC No. 53-2260 (the subject of PAC-44625); NC No. 53-3288 and CO No. 53-0108 (the subject of PACIPAH/FCO-44141); and NC No. 53-3328 (the subject of PACIPAH/FOV44435); WHEREAS, the following NCs have been issued for violations on Permit No. 898-0884: NC No. 53-3768; NC No. 53-3654; and NC No. 53-2026 (the subject of PACIFOV44738); WHEREAS, the following NCs have been issued for violations on Permit No. 813-0354: NC No. 63-2643 and NC No. 63-2640' (the subject ofPAC-45546); WHEREAS, Kentucky Fuel is the approved operator on Permit Nos. 813-0260, 898-0861, and 898-0775; 19 g. SEQUOIA ENERGY, LLC WHEREAS, the Petitioner, Sequoia Energy, LLC (hereinafter "Sequoia") is a Kentucky limited liability company with known addresses of Post Office Box 838, Middlesboro, Kentucky 40965 and 966 KY 990, Coalgood, Kentucky 40818, a principal office at 302 South Jefferson Street, Roanoke, Virginia 24011, and a registered agent of CT Corporation, 306 West Main Street, Suite 512, Frankfort, Kentucky 40601. Sequoia is authorized to conduct coal mining operations in the Commonwealth of Kentucky, and at all times pertinent to this action transacted business in the Commonwealth of Kentucky; WHEREAS, Sequoia is authorized to conduct coal mining operations through the Cabinet's issuance of Permit Nos. 848-0230, 848-0270, 848-0273, 848-0274, 848-0275, 8485459,848-5460,848-5462,848-5463,848-5485, 848-7024, 848-8069, 848-8076, 848-9022, 8489025, 866-5151, and 866-5152. Sequoia is the current permittee and operator on these permits; WHEREAS, the following NCs and COs have been issued for violations on Permit No. 848-0230: NC No. 23-2023 (the subject ofPACIFOV-44194); NC No. 23-2166 and CO No. 23-0699 (the subject of PACIFCOIFOV-44554), NC No. 23-3051 (the subject of PAC45456), and NC No. 23-3150 (the subject ofPAC-45598); WHEREAS, the following NCs and COs have been issued for violations on Permit No. 848-0270: NC No. 23-0392 and CO 23-0032 (the subject of PACIFCO-44138), NC No. 23-0610 (the subject ofPAC-44038), NC No. 23-1064 and CO No. 23-0036 (the subject of PACIFCO-44191), NC No. 23-1388 and CO No. 23-0034 (the subject ofPACIFCO-44192), NC No. 23-1409 (the subject of PAC/FCO-44189), NC No. 23-1798 and CO No. 23-0031 (the subject of PACIFCO-43802), NC No. 23-1800 (the subject of PACICCA-42745), NC No. 231978 (the subject of PPA/CCA-42941), NC No. 23-2037 and CO No. 23-0035 (the subject of 20 PAC/FCO-44190), NC No. 23-2075 (the subject ofFOV-44188), NC No. 23-1964 and Co Nos. 23-0037 and 23-0045 (the subject of PAC/FCO-44730), NC No. 23-2578 (the subject of PAC45368), NC No. 23-2621 and CO No. 23-0165 (the subject ofFCO-45489), NC No. 23-2998 (the subject ofPAC-45576); WHEREAS, the following NCs and COs have been issued for violations on Permit No. 848-0271: NC No. 23-2267 (the subject of FOV-44195), NC No. 23-2993 (the subject ofPAC-45591) and NC No. 23-3059 (the subject ofPAC-45389); WHEREAS, the following NCs and COs have been issued for violations on Permit No. 848-0273: NC No. 23-2378 (the subject of FOV-44196), NC No. 23-2387 and CO No. 23-0587 (the subject of PAC/PAH/FOV-44747), NC No. 23-2858 (the subject of PAC45444), NC No. 23-2994 (the subject ofPAC-45592); WHEREAS, the following NCs and COs have been issued for violations on Permit No. 848-0274: NC No. 23-1951 (the subject ofPAC/CCA-42855), NC No. 23-2078 (the subject of PAC/FOV-44197), NC No. 23-2365 and CO No. 23-0697 (the subject of PAC/FCO/FOV-44728), NC No. 23-2854 (the subject of PAC-45441), NC No. 23-2864 (the subject ofPAC-45583), and NC No. 23-3050 and CO No. 23-0712 (the subject ofPAC-45 130); WHEREAS, the following NCs and COs have been issued for violations on Permit No. 848-0275: NC No. 23-1935 (the subject of PAC-43517), NC No. 23-2060 (the subject of PAC/CCA-43248), NC No. 23-2344 (the subject of PAC-44178), NC No. 23-2851 and CO Nos. 23-0368 (the subject of PAC/FCO-45088) and 23-0713, NC No. 23-2855 (the subject ofPAC-45372), and NC No. 23-2861 (the subject ofPAC-45584); WHEREAS, the following NCs and COs have been issued for violations on 848- 5459: NC No. 23-1936 (the subject ofPAC/CCA-42818), NC No. 23-2039 (the subject of PAC- 21 43765), NC No. 23-2076 (the subject of PACIFOV-44198), NC No. 23-2367 and CO No. 230709 (the subject ofPACIFOV-44746), NC No. 23-2865 (the subject ofPAC-45585), NC No. 23-3052 (the subject ofPAC-45502), and NC No. 23-3151; WHEREAS, the following NCs and COs have been issued for violations on 8485460: NC No. 23-1993 (the subject of PAC-43774), NC No. 23-1563 and CO No. 23-0698 (the subject ofPACIFCOIFOV-44727), and NC No. 23-2866 (the subject ofPAC-45586); WHEREAS, the following NCs and COs have been issued for violations on 8485461: NC No. 23-0508 (the subject of PAC-43559), NC No. 23-1375 (the subject of PAC43741), NC No. 23-1974 (the subject of PACICCA-42854), NC No. 23-2164 (the subject of PACIFOV-44199), NC No. 23-2927 (the subject of PAC-45593), and NC No. 23-3057 (the subject ofPAC-45386); WHEREAS, the following NCs and COs have been issued for violations on 8485462: NC No. 23-0609 (the subject ofPAC-43560), NC No. 23-1973 (the subject of PACICC A42814), NC No. 23-2165 (the subject ofPACIFOV-44200), NC No. 23-2167 and CO Nos. 230708 (the subject ofPACIFCOIFOV-44555) and 23-0710 (the subject ofPAH-44555A), NC No. 23-2957 (the subject ofPAC-45594), and NC No. 23-3060 (the subject ofPAC-45439); WHEREAS, the following NCs and COs have been issued for violations on 8485463: NC No. 23-0936 (the subject of PACIFOV-44193), NC No. 23-1087 (the subject of PACIFOV-44355), NC No. 23-1809 (the subject of PAC-43442), NC No. 23-1922 (the subject ofPAC-43518), NC No. 23-2046 (the subject ofPAC-43893), NC No. 23-1531 (the subject of PAC-44796), NC No. 23-1570 and CO No. 23-0444 (the subject of PAC-45158), NC No. 231976 and CO No. 23-0443 (the subject of PAC/PAHIFCO-4493 0), NC No. 23-2041 and CO No. 23-0442 (the subject of PACIFCO-44931), NC No. 23-2849 (the subject of PAC-45145), NC 22 No. 23-2852 (the subject ofPAC-45264), NC No. 23-2853 (the subject ofPAC-45394), and NC No. 23-2860 (the subject ofPAC-45587); WHEREAS, the following NCs and COs have been issued for violations on 8485466: NC No. 23-2967 (the subject of PAC-45596), and NC No. 23-3056 (the subject of PAC45384); WHEREAS, the following NCs and COs have been issued for violations on 8485485: NC No. 23-2077 (the subject of FOV-44201), NC No. 23.-2282 and CO No. 23-0707 (the subject ofPACIFCO/FOV-44523), NC No. 23-2361 (the subject ofPACIFOV-44611), NC No. 23-2862 (the subject ofPAC-45589), NC No. 23-3053 (the subject ofPAC-45499); WHEREAS, the following NCs and COs have been issued for violations on 8487024: NC No. 23-1513 and CO No. 23-0706 (the subject ofPACIFCO-44932), NC No. 23-2863 (the subject ofPAC-45590), and NC No. 23-3054 (the subject ofPAC-45383); WHEREAS, the following NCs and COs have been issued for violations on 8488069: NC No. 23-1828 (the subject ofPACICCA-42817); WHEREAS, the following NCs and COs have been issued for violations on 8488076: NC No. 23-0937 (the subject ofPACIFOV-44224), NC No. 23-1992 (the subject of PAC43579), NC No. 23-2019 (the subject of PAC-43834), NC No. 23-2056 (the subject of PAC43851), NC No. 23-2345 (the subject of PAC-44088), NC No. 23-1582 (the subject of PACIFOV-44745), NC No. 23-2285 (the subject of PACIFOV-44612), NC No. 23-2366 (the subject ofPAC-44681), NC No. 23-2464 (the subject ofPAC-45603), and NC No. 23-3055 (the subject ofPAC-45377); 23 WHEREAS, the following NCs and COs have been issued for violations on 8488077: NC No. 23-2463 (the subject of PAC-45601), NC No. 23-2850 (the subject of PAC45146), and NC No. 23-2857 (the subject ofPAC-45374); WHEREAS, the following NCs and COs have been issued for violations on 8489022: NC No. 23-0113 (the subject ofPACICCA-41867); WHEREAS, the following NCs and COs have been issued for violations on 8489025: NC No. 23-1961 (the subject of PAC-43618), NC No. 23-2020 (the subject of PAC43896), NC No. 23-2040 (the subject of PACICCA-43138), NC No. 23-2111 (the subject of PAC-43775), NC No. 23-2155 (the subject of PAC-43955), NC No. 23-2338 (the subject of PAC-44014), NC No. 23-2346, Imminent Danger CO No. 23-0282 (the subject of PAC/FOV44363), NC No. 23-2283 (the subject of PACIFOV-44609), NC No. 23-2339 and CO No. 230705 (the subject of PACIFCO-44926), NC No. 23-2388 and CO No. 23-0711 (the subject of PAC/PAH-45054), NC No. 23-2598 (the subject of PAC-45604), and NC No. 23-3058 (the subject of PAC-45387); WHEREAS, the following NCs and COs have been issued for violations on 8665151: NC No. 63-2594 (the subject ofPAC-45367), NC No. 63-2596, and NC No. 63-2649 and CO No. 63-0539 (the subject ofPACIFCO-45051); 'WHEREAS, the following NCs and COs have been issued for violations on 8665152: NC No. 63-0798 and CO No. 63-0440 (the subject ofPACIFCO-43801A) and CO No. 630393 (the subject of PACIFCO-43801), NC No. 63-2001 (the subject of PAC-43514), NC No. 63-2326 (the subject ofPAC-43957), NC No. 63-2408 (the subject ofPAC-43936), NC No. 632445 (the subject of PAC-44275), NC No. 63-2521 (the subject of PAC/FOV-44356) NC No. 63-2650 and CO No. 63-0544 (the subject ofPACIFCO-45074), NC No. 63-2508 and CO Nos. 24 63-0441 (the subject of PAC/FCO/FOV-44332) and 63-0443 (the subject of FCO-44332A), NC No. 63-2668 and CO No. 63-0599 (the subject of PAC/FCO-45152), NC No. 63-2753, NC No. 63-2597 (the subject of PAC-45566), NC No. 63-2550 and CO No. 63-0497 (the subject of PAC/FCO/FOV-44729 and FCO-44729A), NC No. 63-2558 (the subject of PAC/FOV-44748), and NC No. 63-2741 (the subject ofPAC-45118); h. STRONG BROTHERS (KENTUCKY FUEL, OPERATOR) WHEREAS, Strong Brothers Mining (hereinafter "Strong Brothers") is a sole proprietorship with an address at 25 Little Creek Road, Jackson, Kentucky 41339 whose business includes the mining of coal; WHEREAS, Strong Brothers is authorized to conduct coal mining operations through the Cabinet's issuance of Permit No. 813-0260; WHEREAS, the approved operator on Permit No. 813-0260 is Kentucky Fuel, a Justice entity; WHEREAS, the following NCs and COs have been issued for violations on 8130260: NC No. 63-2131 and CO No. 63-0259 (the subject of ACCIPACIPAHlFCO-43377 and Franklin Circuit Court action 13-CI-01386), NC No. 63-2289 and CO No. 63-0298 (the subject of PACIPAHlFCO-45069), NC No. 63-1959 and CO No. 63-0296 (the subject of PACIPAHlFCO/FOV-44036), NC No. 63-2025 (the subject of PAC/FOV-44517), NC No. 632641 (the subject ofPAC-45547), NC No. 63-2111 (the subject ofPAC-44996), and NC No. 632157 and CO No. 63-0297 (the subject ofPAC/FCO-45070); i, VIRGINIA FUEL CORPORATION WHEREAS, the Petitioner, Virginia Fuel Corporation (hereinafter "Virginia Fuel") is a Virginia corporation with a known address of Post Office Box 3499, Wise, Virginia 25 24293, a principal office at 302 South Jefferson Street, Roanoke, Virginia 24011, and a registered agent of CT Corporation, 306 West Main Street, Suite 512, Frankfort, Kentucky 40601. Virginia Fuel is authorized to conduct surface mining operations in the Commonwealth of Kentucky, and at all times pertinent to this action transacted business in the Commonwealth of Kentucky. WHEREAS, Virginia Fuel is authorized to conduct coal mining operations in the Commonwealth of Kentucky through the Cabinet's issuance of Permit Nos. 848-0315, 848-0316, 848-0317,848-5505,848-5506,848-5507, 848-5508, 848-5509, 848-5510, 848-5511, 848-5512, 848-5513, 848-7036, 848-8082, and 848-9028, and at all times pertinent to this action transacted business in the Commonwealth of Kentucky; WHEREAS, The following NCs and COs have been issued for violations on Permit No. 848-0315: NC No. 23-2985 and CO No. 23-0669 and CO No. 23-0670 (the subject of PAC/FCO-45073 and FCO-45073A); NC No. 23-2980 (the subject ofPAC-45012); NC No. 233144 (the subject ofPAC/FCO-45607); NC No. 23-3114 (the subject ofPAC-45440); and NC No. 23-2751 and CO No. 23-0507 (the subject ofPAC/FCO-44758); WHEREAS, The following NCs and COs have been issued for violations on Permit No. 848-0316: NC No. 23-2476 and CO No. 23-0660 (the subject of PAC/PAH/FOV44608); NC No. 23-2760 and CO No. 23-0665 (the subject of PAC/PAH-45053); NC No. 232762 (the subject of PAC -45013); NC No. 23-2987 (the subject of PAC-45127); NC No. 233145 (the subject of PAC-45608); NC No. 23-3115 (the subject of PAC-45442); and NC No. 23-2752 and CO No. 23-0508 (the subject ofPAC/FCO-44759); WHEREAS, The following NCs and COs have been issued for violations on Permit No. 848-0317: NC No. 23-2765 (the subject of PAC-45021); NC No. 23-3117 (the 26 subject ofPAC-45392); NC No. 23-3186 (the subject ofPAC-45541); and NC No. 23-2756 and CO No. 23-0497 (the subject ofPACIFCO-44762); WHEREAS, The following NCs and COs have been issued for violations on Permit No. 848-5505: NC No. 23-2761 (the subject of PAC-45014); NC No. 23-3183 (the subject ofPAC-45537); NC No. 23-3106 (the subject ofPAC-45443); and NC No. 23-2743 and CO No. 23-0498 (the subject ofPACIFCO-44750); WHEREAS, The following NCs and COs have been issued for violations on Permit No. 848-5506: NC No. 23-2982 (the subject of PAC-45029); NC No. 23-3110 (the subject ofPAC-4539l); NC No. 23-3146 (the subject ofPAC-45538); NC No. 23-2748 and CO No. 23-0503 (the subject of PACIFCO-44755); and NC No. 23-2758 (the subject of PACIFOV44842); WHEREAS, The following NCs and COs have been issued for violations on Permit No. 848-5507: NC No. 23-2976 (the subject of PAC-45025); NC No. 23-3112 (the subject ofPAC-45356); NC No. 23-3187 (the subject ofPAC-45542); and NC No. 23-2750 and CO No. 23-0506 (the subject ofPACIFCO-44757); WHEREAS, The following NCs and COs have been issued for violations on Permit No. 848-5508: NC No. 23-2973 (the subject of PAC-45022); NC No. 23-3184 (the subject ofPAC-45359); NC No. 23-3107 (the subject ofPAC-45358); and NC No. 23-2744 and CO No. 23-0499 (the subject ofPACIFCO-44751); WHEREAS, The following NCs and COs have been issued for violations on Permit No. 848-5509: NC No. 23-2974 (the subject of PAC-45023); NC No. 23-3108 (the subject ofPAC-45404); NC No. 23-3121; and NC No. 23-2745 and CO No. 23-0500 (the subject ofPACIFCO-44752); 27 WHEREAS, The following NCs and COs have been issued for violations on Permit No. 848-5510: NC No. 23-2741 and CO No. 23-0661 (the subject of PAC/PAH/FOV44675); NC No. 23-2981 (the subject of PAC-45030); NC No. 23-2983 and CO No. 23-0666 (the subject ofPAC-45087); NC No. 23-3168 (the subject ofPAC-45536); NC No. 23-3082 (the subject ofPAC-45485); NC No. 23-3119 (the subject ofPAC-45435); and NC No. 23-2742 and CO No. 23-0504 (the subject ofPACIFCO-44749); WHEREAS, The following NCs and COs have been issued for violations on Permit No. 848-5511: NC No. 23-2975 (the subject of PAC-45024); NC No. 23-3109 (the subject ofPAC-45357); NC No. 23-3185 (the subject ofPAC-45540); and NC No. 23-2746 and cONo. 23-0501 (the subject ofPACIFCO-44753); WHEREAS, The following NCs and COs have been issued for violations on Permit No. 848-5512: NC No. 23-3011; NC No. 23-2764 (the subject of PAC-45020); NC No. 23-3081 (the subject ofPAC-45390); NC No. 23-3182 (the subject ofPAC-45535); and NC No. 23-2747 and CO No. 23-0502 (the subject ofPACIFCO-44754); WHEREAS, The following NCs and COs have been issued for violations on Permit No. 848-5513: NC No. 23-2979 (the subject of PAC-45026); NC No. 23-3111 (the subject of PAC-45393); NC No. 23-3122 (the subject of PAC-45606); NC No. 23-3118 (the subject of PAC-45455); and NC No. 23-2749 and CO No. 23-0505 (the subject of PACIFCO44756); WHEREAS, The following NCs and COs have been issued for violations on Permit No. 848-7036: NC No. 23-2763 (the subject of PAC-45019); NC No. 23-3020 (the subject of PACA5323); NC No. 23-3188 (the subject of PAC-45602); NC No. 23-2753 and CO No. 23-0509 (the subject ofPAC/FCO-44760); 28 WHEREAS, The following NCs and COs have been issued for violations on Permit No. 848-8082: NC No. 23-1395 and CO No. 23-0664 (the subject ofPAC/PAH-45052); NC No. 23-2757 and CO No. 23-0662 and CO No. 23-0663 (the subject of PACIFOV-44673); NC No. 23-3116 and CO No. 23-0671 (the subject ofFCO-45488); NC No. 23-2986 (the subject of PAC-45128); NC No. 23-2977 (the subject of PAC-45027); NC No. 23-3123 (the subject of PAC-45609); NC No. 23-2754 and CO No. 23-0510 (the subject ofPACIFCOIFOV-44676); and NC No. 23-2445 and CO No. 23-0668 (the subject ofPACIFOV-44527; WHEREAS, The following NCs and COs have been issued for violations on Permit No. 848-9028: NC No. 23-2978 (the subject of PAC/PAH-45028); NC No. 23-2984 and CO No. 23-0667 (the subject of PACIFOV-45129); NC No. 23-3120; NC No. 23-3113 (the subject of PAC-45438); and NC No. 23-2755 and CO No. 23-0511 (the subject of PACIFCO44761); WHEREAS, on June 26, 2014, the Commissioner of the Department of Natural Resources Steve Hohmann sent a letter to Justice representative Steve Ball that discussed a multitude of compliance issues on Justice permits. In that letter Commissioner Hohmann identified numerous Justice permits that had been issued conditioned on the diligent abatement of permit conditions which were in violation at that time. As a result, the Commissioner directed the Division of Mine Permits to suspend the following Justice permits as of 8:00AM, Monday, June 30, 2014: 898-0884, 860-0505, 860-8020, 898-0775, 848-0282, 848-0283, 848-8082, and 848-8076. That suspension date has since been extended to allow for negotiations between the parties identified herein; WHEREAS, the parties desire to resolve the cases arising from the violations listed herein without the necessity and cost of further litigation; 29 . NOW, THEREFORE, in acknowledgement of the foregoing recitals and in consideration of the promises expressed herein, the parties HEREBY AGREE as follows: III. 1. PRIOR AGREED ORDERS The Petitioners admit that they are in breach of the following Agreed Orders, which were entered prior to this agreement: A. The Infinity Agreed Order resolving numerous violations, which was entered on January 18, 2013; B. The Infinity Agreed Order resolving FOV-44474, which was entered on October 9,2013; C. The Infinity Agreed Order resolving PAH-44463, which was entered on June 2, 2014; D. The Infinity Agreed Order resolving PAH-44464, which was entered on June 2, 2014; E. The Sequoia Agreed Order resolving numerous violations, which was entered April 1, 2013; F. The Kentucky Fuel Agreed Order resolving FOV-44358-47, which was entered on May 14, 2014; G. The Kentucky Fuel Agreed Order resolving FOVIPAH-44473-47, which was entered May 14,2014; H. The Kentucky Fuel Agreed Order resolving FOVIPAH-44435-47, which was entered May 14, 2014; 1. The Kentucky Fuel Agreed Order resolving FOV/FCOIPAC-44439-47, which was entered June 2, 2014; 30 J. The Kentucky Fuel Agreed Order resolving numerous administrative violations, which was entered June 2, 2014; K. The Beech Creek and Kentucky Fuel Agreed Order resolving FOV/PAH-44203- 047, which was entered March 10,2014; and 1. The Virginia Fuel Agreed Order resolving FOV/PAC-44842, which was entered on March 10,2014. 2. The parties agree that the Agreed Orders listed in Paragraph 1 of this Section shall be superseded by this Agreed Order, and upon date of entry of this Agreed Order, those previous agreements are to be considered null and void. IV. ADMISSION OF SUBJECT VIOLATIONS 3. The Petitioners admit to violations of KRS Chapter 350, 405 KAR Chapters 7 through 24 as set out in the following paragraphs. 4. A&G Coal admits to the violations of KRS Chapter 350, 405 KAR Chapters 7 through 24 set out in NC No. 53-3048, NC No. 53-3559, NC No. 53-3583, NC No. 53-3645, NC No. 53-3649, NC No. 53-3652, NC No. 53-3670, NC No. 53-3688, NC No. 53-3847, NC No. 53-3853, CO No. 53-0393, CO No. 53-0394, CO No. 53-0530, CO No. 53-0534, CO No. 530550, and CO No. 53-0570. 5. Kentucky Fuel, as approved operator on Beech Creek Permit No. 898-0775, admits to the violations of KRS Chapter 350, 405 KAR Chapters 7 through 24 set out in NC No. 53-1347, NC No. 53-1813, NC No. 53-2038, NC No. 53-2664, NC No. 53-3276, NC No. 533282, NC No. 53-3612, NC No. 53-3760, NC No. 53-3761, NC No. 53-3766, NC No. 53-3774, NC No. 53-3789, NC No. 53-3790, NC No. 53-3996, CO No. 53-0078, CO No. 53-0489, CO No. 53-0490 and CO No. 53-0868. 31 6. Four Star admits to the violations of KRS Chapter 350, 405 KAR Chapters 7 through 24 set out in NC No. 23-1576, NC No. 23-2094, NC No. 23-2099, NC No. 23-2441, NC No. 23-2442, NC No. 23-2443, NC No. 23-2444, NC No. 23-2503, NC No. 23-2521, NC No. 23-2560, NC No,.23-2561, NC No. 23-2564, NC No. 23-2565, NC No. 23-2572, NC No. 232573, NC No. 23-2574, NC No. 23-2623, NC No. 23-2711, NC No. 23-2712, NC No. 23-2997, CO No. 23-0038, CO No. 23-0039, CO No. 23-0040, CO No. 23-0041, CO No. 23-0042, CO No. 23-0043, CO No. 23-0044, CO No. 23-0161, CO No. 23-0162, CO No. 23-0163, CO No. 23-0164, and CO No. 23-0311. 7. Greenthorn admits to the violations of KRS Chapter 350, 405 KAR Chapters 7 through 24 set out in NC No. 53-1328, NC No. 53-1775, NC No. 53-2393, NC No. 53-3291, NC No. 53-3381, NC No. 53-3577, CO No. 53-0079, and CO No. 53-0526. 8. Infinity admits to the violations of KRS Chapter 350, 405 KAR Chapters 7 through 24 set out in NC No. 23-0222, NC No. 23-0228, NC No. 23-0229, NC No. 23-0516, NC No. 23-0865, NC No. 23-0934, NC No. 23-0935, NC No. 23-1692, NC No. 23-1729, NC No. 23-1833, NC No. 23-1835, NC No. 23-1880, NC No. 23-1952, NC No. 23-2303, NC No. 232305, NC No. 23-2375, NC No. 23-3025, NC No. 23-3026, NC No. 23-3027, NC No. 23-3028, NC No. 23-3029, NC No. 23-3030, NC No. 23-3031, NC No. 23-3032, CO No. 23-0127, CO No. 23-0128, CO No. 23-0137, CO No. 23-0138, CO No. 23-0139, CO No. 23-0140, CO No. 23-0141, CO No. 23-0142, and CO No. 23-0144. 9. Kentucky Fuel admits to the violations ofKRS Chapter 350,405 KAR Chapters 7 through 24 set out in NC No. 43-1046, NC No. 43-1312, NC No. 43-1535 NC No. 43-1591, NC No. 43-1785, NC No. 43-2003, NC No. 43-2008, NC No. 43-2069, NC No. 53-2072, NC No. 43-2190, , NC No. 43-2465, NC No. 43-2721, NC No. 43-2783, NC No. 43-2805, NC No. 32 43-2815, NC No. 43-2816, NC No. 43-2853, NC No. 43-2858, NC No. 43-2859, NC No. 432875, , NC No. 43-2877, NC No. 43-2911, NC No. 43-2912, NC No. 43-2913, NC No. 432920, NC No. 43-2924, , NC No. 43-2939, NC No. 43-2942, NC No. 43-2947, NC No. 432986, NC No. 43-2992, NC No. 43-2993, NC No. 43-3014, NC No. 43-3058, NC No. 433063, NC No. 43-3067, NC No. 43-3068, NC No. 43-3073, NC No. 43-3093, NC No. 433095, NC No. 43-3096, NC No. 43-3097, NC No. 43-3098, NC No. 43-3099, NC No. 433100, NC No. 43-3106, NC No. 43-3107, NC No. 43-3121, NC No. 43-3122, NC No. 433123, NC No. 43-3124, NC No. 43-3128, NC No. 43-3129, NC No. 43-3130, NC No. 433131, NC No. 43-3132, NC No. 43-3133, NC No. 43-3153, NC No. 43-3154, NC No. 433171, NC No. 43-3195, , NC No. 43-3210, NC No. 43-3211, NC No. 43-3212, NC No. 433226, NC No. 43-3227, NC No. 43-3228, NC No. 43-3229, NC No. 43-3230, NC No. 43-3231, NC No. 43-3233, NC No. 43-3234, NC No. 43-3235, NC 43-3236, NC 43-3248, NC No. 433250, NC No. 43-3251, NC No. 43-3272, NC No. 43-3273, NC No. 43-3412, , NC No. 43-3417, NC No. 43-3419, NC No. 43-3420, NC No. 43-3421, NC No. 43-3422, NC No. 43-3423, NC No. 43-3424, NC No. 43-3435, NC No. 43-3539, NC No. 43-3544, NC No. 43-3773, NC No. 53-1346, NC No. 53-2026, NC No. 53-2053, NC No. 53-2056, NC No. 53-2260, NC No. 533244, NC No. 53-3278, NC No. 53-3286, NC No. 53-3287, NC No. 53-3288, NC No. 53-3289, NC No. 53-3328, NC No. 53-3378, NC No. 53-3469, NC No. 53-3476, NC No. 53-3532, NC No. 53-3654, NC No. 53-3764, NC No. 53-3765, NC No. 53-3767, NC No. 53-3768, NC No. 53-3769, NC No. 53-3770, NC No. 53-3778, NC No. 63-2024, NC No. 63-2163, NC No. 632317, NC No. 63-2318, NC No. 63-2340, NC No. 63-2446, NC No. 63-2447, NC No. 632448,NC No. 63-2468, NC No. 63-2512, NC No. 63-2546, NC No. 63-2554, NC No. 63-2579, NC No. 63-2580, NC No. 63-2624, NC No. 63-2640, NC No. 63-2642, NC No. 63-2643, NC 33 No. 63-2663, NC No. 63-2664, NC No. 63-2707, NC No. 63-2708, NC No. 63-2711, NC No. 63-2712, NC No. 63-2713, NC No. 63-2714, NC No. 63-2772, NC No. 63-2786, CO No. 630049, CO No. 43-0017, CO No. 43-0018, CO No. 43-0405, CO No. 43-0407, CO No. 430428, , CO No. 43-0429, CO No. 43-0510, CO No. 43-0514, CO No. 43-0569, CO No. 430587, CO No. 43-0595, CO No. 43-0620, CO No. 43-0621, CO No. 43-0726, CO No. 430727, CO No. 43-0850, CO No. 43-0851, CO No. 43-0859, CO No. 43-0860, CO No. 430970, CO No. 43-1037, CO No. 53-0107, CO No. 53-0108, CO No. 53-0109, CO No. 530338, CO No. 53-0415, CO No. 53-0416, CO No. 53-0485, CO No. 53-0486, CO No. 530487, CO No. 53-0491, CO No. 63-0044, CO No. 63-0045, CO No. 63-0046, CO No. 630047, CO No. 63-0048, CO No. 63-0050, CO No. 63-0205, and CO No. 63-2504. 10. Sequoia admits to the violations of KRS Chapter 350, 405 KAR Chapters 7 through 24 set out in NC No. 23-0113, NC No. 23-0392, NC No. 23-0508, NC No. 23-0609, NC No. 23-0610, NC No. 23-0936, NC No. 23-0937, NC No. 23-1064, NC No. 23-1087, NC No. 23-1375, NC No. 23-1388, NC No. 23-1409, NC No. 23-1513, NC No. 23-1531, NC No. 231563, NC No. 23-1570, NC No. 23-1582, NC No. 23-1798, NC No. 23-1800, NC No. 23-1809, NC No. 23-1828, NC No. 23-1922, NC No. 23-1935, NC No. 23-1936, NC No. 23-1951, NC No. 23-1961, NC No. 23-1964, NC No. 23-1973, NC No. 23-1974, NC No. 23-1976, NC No. 23-1978, NC No. 23-1992, NC No. 23-1993, NC No. 23-2019, NC No. 23-2020, NC No. 232023, NC No. 23-2037, NC No. 23-2039, NC No. 23-2040, NC No. 23-2041, NC No. 23-2046, NC No. 23-2056, NC No. 23-2060, NC No. 23-2075, NC No. 23-2076, NC No. 23-2077, NC No. 23-2078, NC No. 23-2111, NC No. 23-2155, NC No. 23-2164, NC No. 23-2165, NC No. 23-2166, NC No. 23-2167,NC No. 23-2267, NC No. 23-2282, NC No. 23-2283, NC No. 232285, NC No. 23-2338, NC No. 23-2339, NC No. 23-2344, NC No. 23-2345, NC No. 23-2346, 34 NC No. 23-2361, NC No. 23-2365, NC No. 23-2366, NC No. 23-2367, NC No. 23-2378, NC No. 23-2387, NC No. 23-2388, NC No. 23-2463, NC No. 23-2464, NC No. 23-2578, NC No. 23-2598, NC No. 23-2621, NC No. 23-2849, NC No. 23-2850, NC No. 23-2851, NC No. 232852, NC No. 23-2853, NC No. 23-2854, NC No. 23-2855, NC No. 23-2857, NC No. 23-2858, NC No. 23-2860, NC No. 23-2861, NC No. 23-2862, NC No. 23-2863, NC No. 23-2864, NC No. 23-2865, NC No. 23-2866, NC No. 23-2927, NC No. 23-2957, NC No. 23-2967, NC No. 23-2993, NC No. 23-2994, NC No. 23-2998, NC No. 23-3050, NC No. 23-3051, NC No. 233052, NC No. 23-3053, NC No. 23-3054, NC No. 23-3055, NC No. 23-3056, NC No. 23-3057, NC No. 23-3058, NC No. 23-3059, NC No. 23-3060, NC No. 23-3150, NC No. 23-3151, NC No. 63-0798, NC No. 63-2001, NC No. 63-2326, NC No. 63-2408, NC No. 63-2445, NC No. 63-2508, NC No. 63-2521, NC No. 63-2550, NC No. 63-2558, NC No. 63-2594, NC No. 632596, NC No. 63-2597, NC No. 63-2649, NC No. 63-2650, NC No. 63-2668, NC No. 63-2741, NC No. 63-2753, CO No. 23-0031, CO No. 23-0032, CO No. 23-0034, CO No. 23-0035, CO No. 23-0036, CO No. 23-0037, CO No. 23-0045, CO No. 23-0165, CO No. 23-0282, CO No. 23-0368, CO No. 23-0442, CO No. 23-0443, CO No. 23-0444, CO No. 23-0587, CO No. 230697, CO No. 23-0698, CO No. 23-0699, CO No. 23-0705, CO No. 23-0706, CO No. 23-0707, CO No. 23-0708, CO No. 23-0709, CO No. 23-0710, CO No. 23-0711, CO No. 23-0712, CO No. 23-0713, CO No. 63-0393, CO No. 63-0440, CO No. 63-0441, CO No. 63-0443, CO No. 63-0497, CO No. 63-0539, CO No. 63-0544, and CO No. 63-0599. 11. Strong Brothers and Kentucky Fuel, as approved operator on Strong Brothers Permit No. 813-0260, admit to the violations of KRS Chapter 350, 405 KAR Chapters 7 through 24 set out in NC No. 63-1959, NC No. 63-2025, NC No. 63-2111, NC No. 63-2131, NC No. 63- 35 2157, NC No. 63-2289, NC No. 63-2641, CO No. 63-0259, CO No. 63-0296, CO No. 63-0297, and CO No. 63-0298. 12. Virginia Fuel admits to the violations of KRS Chapter 350, 405 KAR Chapters 7 through 24 set out in NC No. 23-1395, NC No. 43-2445, NC No. 23-2476, NC No. 23-2741, NC No. 23-2742, NC No. 23-2743, NC No. 23-2744, NC No. 23-2745, NC No. 23-2746, NC No. 23-2747, NC No. 23-2748, NC No. 23-2749, NC No. 23-2750, NC No. 23-2751, NC No. 232752, NC No. 23-2753, NC No. 23-2754, NC No. 23-2755, NC No. 23-2756, NC No. 23-2757, NC No. 23-2758, NC No. 23-2760, NC No. 23-2761, NC No. 23-2762, NC No. 23-2763, NC No. 23-2764, NC No. 23-2765, NC No. 23-2973, NC No. 23-2974, NC No. 23-2975, NC No. 23-2976, NC No. 23-2977, NC No. 23-2978, NC No. 23-2979, NC No. 23-2980, NC No. 232981, NC No. 23-2982, NC No. 23-2983, NC No. 23-2984, NC No. 23-2985, NC No. 23-2986, NC No. 23-2987, NC No. 23-3011, NC No. 23-3020, NC No. 23-3081, NC No. 23-3082, NC No. 23-3106, NC No. 23-3107, NC No. 23-3108, NC No. 23-3109, NC No. 23-3110, NC No. 23-3111, NC No. 23-3112, NC No. 23-3113, NC No. 23-3114, NC No. 23-3115, NC No. 233116, NC No. 23-3117, NC No. 23-3118, NC No. 23-3119, NC No. 23-3120, NC No. 23-3121, NC No. 23-3122, NC No. 23-3123, NC No. 23-3144, NC No. 23-3145, NC No. 23-3146, NC No. 23-3168, NC No. 23-3182, NC No. 23-3183, NC No. 23-3184, NC No. 23-3185, NC No. 23-3186, NC No. 23-3187, NC No. 23-3188, CO No. 23-0497, CO No. 23-0498, CO No. 230499, CO No. 23-0500, CO No. 23-0501, CO No. 23-0502, CO No. 23-0503, CO No. 23-0504, CO No. 23-0505, CO No. 23-0506, CO No. 23-0507, CO No. 23-0508, CO No. 23-0509, CO No. 23-0510, CO No. 23-0511, CO No. 23-0660, CO No. 23-0661, CO No. 23-0662, CO No. 23-0663, CO No. 23-0664, CO No. 23-0665, CO No. 23-0666, CO No. 23-0667, CO No. 230668, CO No. 23-0669, CO No. 23-0671, NC No. 23-2985, and CO No. 23-0670. 36 V. ABATEMENT OF SUBJECT VIOLATIONS 13. The Petitioners admit that Justice has failed to perform necessary remedial measures and reclamation work required under KRS Chapter 350 and the regulations promulgated pursuant thereto, and specifically required by the Non-Compliances and Cessation Orders set out in Appendix A: Reclamation Plan and Schedule to this Agreed Order. The Petitioners agree to perform the remedial measures and reclamation work in accordance with the Reclamation Plan and Schedule in Appendix A. 14. The remedial measures and reclamation work set out in Appendix A have been prioritized according to necessity, and the Petitioners agree to perform the remedial measures and reclamation work pursuant to the priority schedule set out in Appendix A. The remedial measures and reclamation work in Appendix A have been grouped into different phases, and the Petitioners agree to fully complete all remedial measures and reclamation work included in each phase by the deadlines set out in Appendix A. Upon the Petitioners' request, the Director of the Division of Mine Reclamation and Enforcement (hereinafter, "DMRE") or the Commissioner of the Department for Natural Resources may, in their reasonable discretion, extend the deadlines set out in Appendix A for good cause. Any request for extension shall be timely made and must be in writing. The Petitioners agree that any request for extension from the Cabinet shall be submitted no less than fourteen (14) days prior to the expiration of the deadline in question, unless the Petitioners can demonstrate good cause for delay. 15. In order to properly and timely perform the remedial measures and reclamation work identified in Appendix A, the Petitioners agree to utilize three (3) dedicated spreads of reclamation equipment, each of which shall be assigned to a particular geographic area pursuant to the conditions of Appendix A. Each reclamation spread shall consist of an excavator (CAT 37 365B L Series II equivalent or larger, minimum 4 cyd bucket or similar), a long boom excavator, a utility dozer (specifically a CAT D9 equivalent or larger), an articulated truck (CAT 735, equivalent or larger), an operator for each piece of heavy equipment here mentioned, a foreman, and a mechanic, for a total of six personnel employed with each spread. Petitioners shall provide a point of contact for each reclamation spread to the appropriate DMRE Regional Office in the geographic area where the reclamation spread operates. 16. The Petitioners agree to work diligently to complete the reclamation work set out in Appendix A for a minimum of forty (40) hours each week as the weather permits. The Petitioners agree that the reclamation spreads will be fully functioning and adequate to the task of reclamation in accordance with the specific requirements of Appendix A. The Petitioners agree to perform routine maintenance on the equipment in each reclamation spread and to repair or replace any equipment that fails or breaks down within two (2) working days of failure or breakdown. 17. Nothing in this Section and/or Appendix A shall relieve the Petitioners from their legal obligation to perform all work necessary to keep all permits that are subject to this Agreed Order in strict compliance with the requirements of KRS Chapter 350, 405 KAR Chapters 7 through 24, the terms and requirements of each individual permit, and/or the terms of this Agreed Order. It remains the legal responsibility of the Petitioners to timely abate all present or future violations that are not subject to this Agreed Order and/or Appendix A. The Petitioners agree that the issuance of new violations shall not be a basis for avoiding their obligations under this Agreed Order. 38 VI. 18. NECESSARY PERMITTING ACTIONS The Petitioners agree to diligently pursue the permitting actions set out in Appendix B: Permitting Action Plan and Schedule to this Agreed Order. Specifically, the Petitioners agree to cause the issuance of permitting actions in accordance with a table and deadline set out in Appendix B. The Petitioners further agree to submit water monitoring related permitting actions and withdraw other permitting actions in accordance with the terms of Appendix B. The Cabinet agrees to check permitting actions for ownership and control compliance at the signing of the Agreed Order and promptly issue those actions if no further outstanding issues are present in accordance with the terms of Appendix B. 19. The Petitioners agree to withdraw the following pending permit determination challenges: PDH-45075 (Sequoia, Permit No. 848-0272, Transfer 02), PDH-44670 (Sequoia, Permit No. 848-7024, Renewal No.5), and PDH-44673 (Infinity, Permit 848-0283, Renewal No. 1). The Petitioners agree to withdraw these petitions within thirty (30) days of the entry of the Agreed Order. VII. NECESSARY BONDING 20. The Petitioners agree that the following additional mid-term bonds are required, and are due and payable to the Cabinet: A. Kentucky Fuel Permit No. 898-0884, MT-2, in the amount of two million five hundred seventy three thousand two hundred dollars ($2,573,200); B. Kentucky Fuel Permit No. 836-5581, MT-2, in the amount of forty nine thousand one hundred dollars ($49,100); C. Kentucky Fuel Permit No. 860-9016 in the amount of five hundred eight thousand one hundred dollars ($508,100); D. Kentucky Fuel Permit No. 813-7036, MT-6, in the amount of ninety nine thousand five hundred dollars ($99,500); 39 E. Kentucky Fuel Permit No. 860-5351, MT-2, in the amount of fifty six thousand eight hundred dollars ($56,800); F. Kentucky Fuel Permit No. 813-8033, MT-8, in the amount of forty nine thousand two hundred dollars ($49,200); G. Virginia Fuel Permit No. 848-8082, MT-6, in the amount of six hundred eighteen thousand eight hundred dollars ($618,800); H. Virginia Fuel Permit No. 848-9028, MT-8, in the amount of three hundred eighty seven thousand eight hundred dollars ($387,800); 1. Four Star Permit No. 848-0249, MT-2, in the amount of four hundred two thousand six hundred dollars ($402,600); J. Four Star Permit No. 848-7027, MT-2, in the amount of two hundred sixteen thousand four hundred dollars ($216,400); K. Sequoia Permit No. 848-9025 in the amount of four hundred seventy mne thousand dollars ($479,000); and 1. Kentucky Fuel Permit No. 813-0354 in the amount of sixty thousand three hundred dollars ($60,300). 21. The Petitioners shall submit the bonds described in Section VII within fifteen (15) days of entry of this Agreed Order in the Office of Administrative Hearings. VIII. SPECIAL PERMIT ISSUES 22. The parties agree that the permits set out in this section present unique issues and challenges that should be addressed in the body of this Agreed Order. Those permits are as follows: a. 23. Infinity Permit Nos. 848-0282 and 848-0283 Permit No. 848-0283 has a considerable amount of open, unreclaimed highwall, which the Cabinet estimates to be approximately 7,000 feet long with an average height of 80 feet. The Permittee, Infinity, is not currently mining Permit No. 848-0283, because of unfavorable market conditions. Infinity has requested postponement of coal removal and 40 contemporaneous reclamation requirements on Permit No. 848-0283 until the market for 3% sulfur coal improves. The Cabinet agrees to allow Infinity to postpone the time criteria for coal removal and contemporaneous reclamation requirements on Permit No. 848-0283 for a period of six (6) months from the entry of this Agreed Order in the Office of Administrative Hearings, in accordance with the conditions in this section. 24. During the period of postponement, Infinity shall comply with the requirements of 405 KAR Chapters 7 through 24, the permit, and the terms of this Agreed Order, including any reclamation work associated with Permit No. 848-0283 that is included in the Appendix A: Reclamation Plan and Schedule. Infinity shall keep all other performance standards on Permit No. 848-0283 in compliance the requirements of 405 KAR Chapters 7 through 24 and the requirements of the approved permit plan during this period of postponement. 25. Reclamation Contractor. Infinity agrees to hire a reclamation contractor within thirty (30) days of the entry of this Agreed Order in the Office of Administrative Hearings. The reclamation contractor shall perform any abatement or reclamation work associated with Infinity Permit Nos. 848-0282 and 848-0283 that is included in the Appendix A: Reclamation Plan and Schedule. During the period of postponement, the reclamation contractor shall perform all work necessary to keep Permit Nos. 848-0282 and 848-0283 in strict compliance with the requirements of 405 KAR Chapters 7 through 24, the permits, and the terms of this Agreed Order. Infinity shall provide a point of contact for the reclamation contractor to the Director of the Division of Mine Reclamation and Enforcement (hereinafter, "DMRE"). 26. Renewal of Postponement. The postponement of coal removal and contemporaneous reclamation requirements on Permit No. 848-0283 may be renewed upon written application to the Commissioner of the Department for Natural Resources by Infinity for 41 a period of no more than six (6) months upon a showing of need for additional time, and upon a showing that the area subject to the postponement is in compliance with the requirements of 405 KAR Chapters 7 through 24, the. permit, and the terms of this Agreed Order, including any abatement or reclamation work associated with this permit that is included in Appendix A: Reclamation Plan and Schedule. In no case will the postponement extend beyond one and a half years from the entry of the AO. 27. Additional Bonding. Infinity shall provide additional bonding to the Cabinet for the purpose of ensuring the eventual elimination of the open, unreclaimed highwall on Permit No. 848-0283. That additional bonding shall be in the form of a bond or bonds in the total amount ofthree million dollars ($3,000,000). Infinity shall submit that additional bonding to the Cabinet within thirty (30) days of entry of this Agreed Order in the Office of Administrative Hearings. 28. Additional Bonding Release. Upon Infinity's application, DMRE shall release six hundred thousand dollars ($600,000) of the total additional bonding amount for every 1,400 feet of the original 7,000 feet of highwall on Permit No. 848-0283 that is eliminated by mining and/or reclamation, upon verification by the Cabinet that Infinity has eliminated the highwall in strict compliance with KRS Chapter 350, KAR Chapters 7 through 24, the permit, and the terms of this Agreed Order. DMRE shall not release the fmal six hundred thousand dollars ($600,000) of additional bonding until DMRE has verified that the original 7,000 feet of highwall is completely eliminated in strict compliance with KRS Chapter 350, KAR Chapters 7 through 24, the permit, and the terms of this Agreed Order. 42 b. A & G Permit No. 867-0498. 29, A&G agrees to eliminate the approximately 2,700 feet of open, unreclaimed highwall on this site within six (6) months of the entry of this Agreed Order in the Office of Administrative Hearings. 30. A&G agrees to put a full spread of equipment on this site to eliminate the open, unreclaimed highwall with mining and/or reclamation activities. This spread of equipment on Permit 867-0498 shall also be responsible for performing any abatement or reclamation work associated with this permit that is included in the Appendix A: Reclamation Plan and Schedule. The spread of equipment on Permit 867-0498 shall be in addition to the spreads of equipment required by Section V of this Agreed Order and in Appendix A. This spread of equipment shall be dedicated to Permit No. 867-0498. This spread of equipment shall include, at a minimum: an excavator (CAT 365B L Series II equivalent or larger, minimum 4 cyd bucket or similar), a long boom excavator, a utility dozer (specifically a CAT D9 equivalent or larger), an articulated truck (CAT 735, equivalent or larger), an operator for each piece of heavy equipment here mentioned, a foreman, and a mechanic, for a total of six personnel employed with each spread. Petitioners shall provide a point of contact for each reclamation spread to the appropriate DMRE Regional Office in the geographic area where the reclamation spread operates. 31. A&G shall provide the Cabinet with monthly updates on the progress of reclamation on the site. These monthly updates shall include an engineering survey establishing the amount of unreclaimed highwall that is being reduced during the mining process. This update shall be provided to the Pikeville Regional Office with copies forwarded to the Director ofDMRE by the first day of each month 43 32. Additional Bonding. A&G shall provide additional bonding to the Cabinet for the purpose of ensuring the eventual elimination of the open, unreclaimed highwall. That additional bonding shall be in the form of a bond or bonds in the total amount of one million, five hundred thousand dollars ($1,500,000). A&G shall submit that additional bonding to the Cabinet within thirty (30) days of entry of this Agreed Order in the Office of Administrative Hearings. 33. Additional Bonding Release. Upon A&G's application, DMRE shall release three hundred thousand dollars ($300,000) of the total additional bonding amount for every 540 feet of the original\ 2,700 feet of highwall that is eliminated, upon verification by the Cabinet that A&G has eliminated the highwall in strict compliance with KRS Chapter 350, KAR Chapters 7 through 24, the permit, and the terms of this Agreed Order. DMRE shall not release the final three hundred thousand dollars ($300,000) of additional bonding until DMRE has verified that the original 2,700 feet of highwall is completely eliminated in strict compliance with KRS Chapter 350, KAR Chapters 7 through 24, the permit, and the terms of this Agreed Order. 34. The Petitioners agree to withdraw their appeal of the Secretary's Final Order in File Nos. FOVIFCOIPAH-44137 and FOVIFCO-44357 (Franklin Circuit Court case no. 14-CI00847) and hereby waive any defenses brought in the course of that appeal. c. Strong Brothers Permit No. 813-0260 35. Justice agrees to execute and diligently pursue a successor application to Gulfstream Energy (hereinafter "Gulfstream"), to effectuate the transfer of Permit No. 813-0260 to Gulfstream within thirty (30) days of entry of this Agreed Order in the Office of Administrative Hearings. 44 36. The Petitioners agree to withdraw their appeal of the Secretary's Final Order in File No. ACCIPACIPAH/FCO-43377 (Franklin Circuit Court case no. 13-CI-01386) and hereby waive any defenses brought in the course of that appeal. d. Kentucky Fuel Permit No. 877-0207 37. Permit Renewal. The Cabinet shall issue the renewal of Permit No. 877-0207 upon verification by the Cabinet that the Permit application is complete and accurate and in compliance with all requirements ofKRS Chapter 350 and 405 KAR Chapters 7 through 24. 38. New Contemporaneous Violations. Any violation for contemporaneous reclamation issued to this permit shall be cause for the Department of Natural Resources to immediately suspend the permit until the violation is abated. e. Virginia Fuel Permit No. 848-8082 39. Additional Bonding. This Permit has 2,500 feet of open, unreclaimed highwall. Virginia Fuel shall provide additional bonding to the Cabinet for the purpose of ensuring the eventual elimination of the open, unreclaimed highwall. That additional bonding shall be in the form of a bond or bonds in the total amount of six hundred thousand dollars ($600,000). Virginia Fuel shall submit that additional bonding to the Cabinet within thirty (30) days of entry of this Agreed Order in the Office of Administrative Hearings. 40. Additional Bonding Release. Upon Virginia Fuel's application, DMRE shall release one hundred twenty thousand dollars ($120,000) of the total additional bonding amount for every 500 feet of the original 2,500 feet of highwall that is eliminated, upon verification by the Cabinet that Virginia Fuel has eliminated the highwall in strict compliance with KRS Chapter 350, KAR Chapters 7 through 24, the permit, and the terms of this Agreed Order. DMRE shall not release the final one hundred thousand twenty dollars ($120,000) of additional bonding until 45 DMRE has verified that the original 2,500 feet of highwall is completely eliminated in strict compliance with KRS Chapter 350, KAR Chapters 7 through 24, the permit, and the terms of this Agreed Order. IX. PENALTY 41. Petitioner Sequoia admits that, due to its breach of the previous Agreed Order entered on April 1, 2013 and superseded herein in Section III, the full assessed civil penalties are due and payable to the Cabinet. The Cabinet acknowledges that two hundred four thousand one hundred six dollars ($204,106) in payments have been made toward that sum. 42. Petitioner Infinity admits that, due to its breach of the previous Agreed Order entered on January 18,2013 and superseded herein in Section III, the full assessed civil penalties are due and payable to the Cabinet. The Cabinet acknowledges that one hundred fifteen thousand five hundred twenty eight dollars ($115,528) in payments have been made toward that sum. 43. Petitioner KFC admits that, due to its breach of the previous Agreed Orders entered on March 10, 2014 (Beech Creek Permittee), May 14, 2014 and June 2, 2014 and superseded herein in Section III, the full assessed civil penalties are due and payable to the Cabinet. The parties acknowledge that no payments have been made toward that sum. 44. Petitioner Virginia Fuel admits that, due to its breach of the previous Agreed Order entered on March 10, 2014 and superseded herein in Section III, the full assessed civil penalties are due and payable to the Cabinet. The parties acknowledge that no payments have been made toward that sum. 45. Petitioners Strong Brothers and KFC admit that, due to its breach of a prior letter agreement signed by former Justice Counsel Julie Sharp (see Appendix C) which resolved File 46 No. ACC/PACIPAHIFCO-43377, the full assessed civil penalties are due and payable to the Cabinet. The Cabinet acknowledges that one hundred thousand one dollars ($100,001) in payments have been made toward that sum. 46. Petitioners admit that the total assessed civil penalties of four million nine hundred eighteen thousand six hundred thirty dollars ($4,918,630) for the violations subject to this' agreement are fair and reasonable civil penalties for the violations cited and are not arbitrary or capricious. 47. The Cabinet acknowledges that four hundred nineteen thousand six hundred thirty five dollars ($419,635) has been made in payments under the superseded Sequoia, Infinity, and Strong Brothers agreements, and thus the total amount of outstanding penalties is four million four hundred ninety eight thousand nine hundred ninety five dollars ($4,498,995). 48. Petitioners agree to pay and the Cabinet agrees to accept a reduced civil penalty in the amount of one million, five hundred thousand dollars ($1,500,000). The penalty shall be paid in 30 equal monthly installments of fifty thousand dollars ($50,000) each with the first installment due the 15th of the first full month following entry of this Agreed Order, and each subsequent installment due by the 15th of the succeeding months. The Petitioners agree to pay two hundred fifty thousand dollars ($250,000) with the first installment payment on the 15th of the first full month following entry of this Agreed Order. This amount shall represent the final five installment payments under the payment schedule. The Petitioners may substitute an installment payment from this escrowed amount for any payment during the payment schedule with three (3) days written notice to the Cabinet. The Petitioners may only substitute payments on two occasions during the course of the payment schedule. In the event of a late payment, 47 Petitioners shall incur a penalty of eight (8) percent of the installment per day the payment remains outstanding. 49. The Parties agree that the violations will be used for history points, pattern of violation determinations, or both, pursuant to 405 KAR 7:095 and the Secretary's Orders entered in the above matters. 50. The reduced civil penalties agreed to herein shall be paid by the Petitioners by cashiers' check, certified check, or money order, made payable to the "Kentucky State Treasurer" and sent to the attention of Accounts Receivable, Office of Administrative Hearings, 35-36 Fountain Place, Frankfort, Kentucky 40601. XII. BREACH 51. Time is of the essence ill the implementation of this Agreed Order by the Petitioners and the terms of this Agreed Order are to be strictly construed so as to achieve prompt and complete abatement of violations and payment of civil penalties. 52. Breach of this Agreed Order shall include, but shall not be limited to: A. Failure to complete reclamation according to the time frames specified ill Appendix A, and to adhere to the reclamation schedule contained therein, unless under an extension granted by the Director of the Division of Mine Reclamation and Enforcement or the Commissioner of the Department for Natural Resources; B. Failure to abide by any condition of Appendix A, including but not exclusive to the requirement to provide and utilize three (3) dedicated reclamation spreads according to the terms specified in the body of this Agreed Order and in Appendix A, 48 C. Failure to diligently pursue required permitting actions according to the time frames specified in Appendix B, unless under an extension granted by the Director of the Division of Mine Permits or the Commissioner of the Department for Natural Resources; D. Failure to post necessary bonding pursuant to the terms of Section VII of this Agreed Order; E. Any violation for contemporaneous reclamation issued on any permit listed herein; F. Failure to comply with the terms and conditions regarding special permit issues pursuant to Section VIII of this Agreed Order; and/or G. Failure to make any monthly installment of the civil penalties agreed to herein. 53. Any action for breach or enforcement of this Agreed Order shall be contingent on the Cabinet giving the Petitioners written notice of the breach of this Agreed Order and an opportunity to cure its breach. The period for cure of any breach under this Agreed Order shall be limited to a period of 14 days from receipt of Notice. This 14 day period may be extended by the Cabinet if the Petitioners are actively pursuing a cure for the breach and requests, in writing, additional time. Notice of breach of this Agreed Order shall be sent by the Cabinet via certified mail, return receipt requested, and via e-mail to: Billy R. Shelton, Esq. Jones, Walters, Turner & Shelton, PLLC 151 N. Eagle Creek Drive, Suite 310 Lexington, KY 40509 Billys l@jwtslaw.com 49 54. In the event that a breach of this Agreed Order is not cured as set forth in Paragraph No. 53 above, the Cabinet shall be entitled to the following relief without notice or hearing: A. The imposition of the full civil penalties in the amount of four million four hundred ninety eight thousand nine hundred ninety five dollars ($4,498,995), the balance of which shall become immediately due and payable, plus interest on the outstanding balance calculated at a rate of 8% per day from the date of breach until payment is received; B. The immediate suspension of the following permits by the Division of Mine Permits: 898-0884, 860-0505, 860-8020, 898-0775, 848-0282, 848-0283, 848-8082, and 848-8076, and any other permits which were issued conditioned on the abatement of violations which are subject to this agreement; C. All performance bonds posted on permits controlled by Justice that are subject to this Agreed Order shall stand forfeited and will be the subject of demand for payment by the Cabinet to the surety or financial institution providing bond; D. Revocation of any permits controlled by Justice that are subject to this Agreed Order, including those permits named in Paragraph 54(B); E. The Cabinet shall place a block on the Applicant Violator System and petitioners shall be ineligible to receive other permits or permitting actions or begin other operations until the provisions of KRS 350.130 have been completely satisfied and met; and 50 F. Petitioners shall be ordered to perform all remedial measures necessary to abate all outstanding violations that are subject to this Agreed Order and to achieve the approved post-mining land use on all permits controlled by Justice that are subject to this Agreed Order. 55. Nothing in Paragraph No. 54 shall limit the Cabinet's ability to seek any and all other relief to which it may appear reasonably entitled in the event that the Petitioners breach this Agreed Order. 56. Failure to complete all remedial measures by September 1, 2015, unless under extension granted by the Director of the Division of Mine Reclamation and Enforcement, the Director of the Division of Mine Permits, or the Commissioner of the Department for Natural Resources, shall result in the imposition of the remedies in Paragraph No. 54 without hearing or notification of breach. XIII. MISCELLANEOUS PROVISIONS 57. This Agreed Order shall fully and completely resolve any and all of the Petitioners' liabilities, obligations, and responsibilities, including penalties, remediation, reclamation and abatement responsibilities, of any nature or type, in any way related to or arising only out of the subject violations and no other. Furthermore, upon entry of this Agreed Order in the Office of Administrative Hearings, any Secretary's Final Orders previously entered in the case files subject to this Agreed Order shall be superseded by this fully executed Agreed Order. 58. Every time this Agreed Order, or any attachment hereto, provides that a permitting action shall be diligently pursued by the Petitioners, "diligently pursued" shall mean that the Petitioners shall resubmit a corrected permit application within 30 days of notice of a deficiency given by the Cabinet, unless otherwise extended by the Director of the Division of 51 Mine Reclamation and Enforcement, the Director of the Division of Mine Permits, or the Commissioner of the Department for Natural Resources, which extension shall not be unreasonably withheld. 59. Upon entry of this Agreed Order in the Office of Administrative Hearings, the Petitioners and the Cabinet agree that the Administrative Proceedings bearing file numbers contained within the caption of this Agreed Order shall be dismissed without the need for further motion or order. 60. This Agreed Order pertains to and resolves Justice's liability arising from the - Subject Violations described herein and does not pertain to any other Notices of NonCompliance or Cessation Orders issued to Justice in the past, present, or future. 61. This Agreed Order shall be construed in accordance with the laws of the Commonwealth of Kentucky and shall not be modified except in writing as agreed to by the Petitioners and the Cabinet. 62. This Agreed Order shall be of no force or effect until it is signed by the Secretary of the Cabinet, or his designee. 63. Nothing in this Agreed Order shall be construed to limit the remedies available to the Cabinet by law, including the issuance of cessation orders, bond forfeiture, permit revocation, and continued inspection of the permits which are the subject of this Agreed Order. The Petitioners retain all defenses and the right to challenge any and all such Cabinet remedies and actions. 64. Upon entry of this Agreed Order, the Petitioners warve their rights to administrative or judicial review of the violations and the civil penalties and the remedial measures relating thereto. 52 65. The terms of this Agreed Order shall be binding upon and inure to the benefit of the parties hereto, and their successors, assigns and receivers. 66. The terms of this Agreed Order shall be enforceable in the Franklin Circuit Court and no other. XlV. PERSONAL GUARANTY 67. FOR GOOD AND VALUABLE CONSIDERATION, specifically the terms of this Agreed Order which resolves all pending litigation between the Cabinet and the Justice companies, the undersigned, Jim Justice and Jay Justice ("Guarantors"), unconditionally and irrevocably guarantee to the Kentucky Energy and Environment Cabinet, on the terms set forth in this agreement, the full payment and performance when due, by acceleration or otherwise, of any and all civil penalty obligations that the Justice companies owe the Cabinet through the execution and enforcement of this Agreed Order. 68. In the event the Justice Corporations fail to cure any breach of this Agreed Order as set forth in Paragraph No. 53 above, the Guarantors shall immediately be jointly and personally liable for the outstanding balance of the unreduced civil penalty amount owed by the Justice Corporations, plus interest, as described in Section XII of this agreement. The Guarantors waive any defense based on or arising out of any defense of the Justice companies other than payment in full of the civil penalty amount owed by the Justice companies. 69, The Guarantors agree without demand to reimburse the Cabinet for all costs, attorney fees, and other expenses that the Cabinet expends or incurs in the enforcement of any right relating to this agreement between the Cabinet and the Justice Corporations, including enforcement of remedial and/or bonding obligations and collection of civil penalties owed under this Agreed Order, or in the enforcement of this Guaranty. 53 70. This Guaranty and the liability and obligations of Guarantors hereunder are binding upon Guarantors and their heirs, executors, and assigns, and inure to the benefit of and are enforceable by the Cabinet. None of the terms or provisions of this Guaranty may be waived, altered, modified, or amended, except by an instrument in writing duly executed by the party to be charged by it. The obligations of the Guarantors shall remain effective and be enforceable regardless of any subsequent change in the form of business organization of the Justice corporations or any change in the composition, nature, personnel or location of the Justice companies. Guarantors agree that a facsimile copy of this Guaranty shall be considered an original and shall be admissible in a court of law to the same extent as the original document. 71. This Guaranty and the rights, obligations, and liabilities under it are to be governed by, and are to be construed and interpreted in accordance with, the laws ofthe State of Kentucky, excluding, however, Kentucky's choice of law choice of law rule for purposes of conflicts of laws. Guarantors agree that exclusive jurisdiction for any legal action or proceeding arising out of or relating to this Guaranty resides in the federal or state courts of the State of Kentucky and Guarantors further agree and expressly consent to the exercise of personal jurisdiction in the State of Kentucky in connection with any dispute or claim involving this Guaranty. AGREED TO BY: 0~J-- Date: ~/JillSJ Hon. Billy . Shelton Attorney 54 / APPROVAL RECOMMENDED BY: ~r:aLO Date: Hon. Anna K. Girard Officeof General Counsel Department for Natural Resources Energy and Environment Cabinet ~fH~ Date: Officeof General Counsel Department for Natural Resources Energyand Environment Cabinet ~~ SteveHohmann Commissioner Department for Natural Resources Energyand Environment Cabinet - ~~ Q (()\) ' - ' " Hon.·c±-Mt~ Executive Director Officeof GeneralCounsel Energyand Environment Cabinet S5 ?5/J J / / cl ; 1(;/ Lj•/ / i Date: 1jJ ~I fl1 Date: "8'. IL) . I Y HAS SEEN: Date: ~~rUk Date: Hon. Stev;t!anton Hearing Officer Office of Administrative Hearings Energy and Environment Cabinet Date: 7;/1 If// tf ~ I c: 1/ y J1 l; gIl '/ /' (,/ Hon. Susan Rose Green Hearing Officer Office of Administrative Hearings Energy En ironment Cabinet Date: Ho . th mg Officer Office of Administrative Hearings Energy and Environment Cabinet 56 L~c:?O/1 ORDER Upon recommendation of the Office of General Counsel and the Department for Natural Resources, Energy and Environment Cabinet, the foregoing AGREED ORDER is hereby entered as a Final Order of the Energy and JG ? Environment Cabinet this I Lith. -~=. JEONARD K.=P"'--'E"'--T"""""'ER-S- - - - SECRETARY ENERGY AND ENVIRONMENT CABINET 57 day CERTIFICATE OF SERVICE I hereby certify on this the I~day of ~ , 20 \ true and accurate copies of the foregoing Agreed Order were mailed, postage prepaid, to the following: l\- , Hon. Billy R. Shelton Jones, Walters, Turner & Shelton, PLLC 151 N. Eagle Creek Drive, Suite 310 Lexington, KY 40509 James C. Justice, II James C. Justice, III James C. Justice Companies, Inc. 302 South Jefferson Street Roanoke, Virginia 24011 Southern Coal Kentucky Corporation Attn: Stephen W. Ball, V.P. Operations 302 S. Jefferson Street Roanoke, VA 24011 A & G Coal Corporation Post Office Box 1010 Wise, Virginia 24293 Beech Creek Coal 32601 Highway 194 E Phelps, Kentucky 41533 Four Star Resources Post Office Box 838 Middlesboro, Kentucky 40965 Greenthorn, LLC Post Office Box 340 London, Kentucky, 40743 Infinity Energy, LLC PO Box 838 Middlesboro, KY40965 Kentucky Fuel Corporation Post Office Box 130 Mousie, Kentucky, 41839 58 Sequoia Energy, LLC Post Office Box 838 Middlesboro, Kentucky 40965 Sequoia Energy, LLC 966 KY 990 Coalgood, Kentucky 40818 Virginia Fuel Corporation Post Office Box 3499 Wise, Virginia 24293, and hand delivered to: Hon. Anna K. Girard Hon. Lance C. Huffman Counsel Department for Natural Resources Energy and Environment Cabinet # 2 Hudson Hollow Frankfort,KY 40601 d-l6a-nA:b Docket Coordinator DISTRIBUTION: Steve Hohmann, Commissioner, Department for Natural Resources Billy Ratliff, Director Division of Mine Reclamation and Enforcement Allen Luttrell, Director Division of Mine Permits Middlesboro Regional Office . London Regional Office Prestonsburg Regional Office Pikeville Regional Office f~D St~ S~G 2.\i 59 APPENDIX A APPENDIX A: RECLAMATION PLAN AND SCHEDULE SECTION I: GENERAL RECLAMATION PROVISIONS 1. The parties agree that remedial measures are to be completed pursuant to the terms of the Agreed Order, and in accordance with this Reclamation Plan and Schedule. 2. The parties agree that the orders of priority stated in this plan are to be strictly adhered to, unless approval for deviation is granted, in writing, by the Commissioner of the Department for Natural Resources. 3. If priorities for reclamation on a specific permit are not explicitly stated below" the parties agree that Justice may use its discretion on a reclamation plan and order for that permit. However, the Cabinet reserves the right to reassess and evaluate the priorities listed, and may alter its priorities in response to changing conditions, provided it gives Justice written notice. 4. Each reclamation spread listed below shall contain, at minimum: a. an excavator (the equivalent of a CAT 365B L Series II or larger, minimum 4 cyd bucket or similar); b. a long boom excavator; c. a utility dozer (the equivalent of a CAT D9 or larger); d. an articulated truck (the equivalent of a CAT 735 or larger); e. at least six personnel including an operator for each piece of heavy equipment; a foreman, and a mechanic. 5. Each reclamation spread listed below shall have a designated contact person. The name and contact information shall be provided to each DJvfRE Regional Office which oversees the counties in which the reclamation spread intends to operate no later than one week after date of entry of this Agreed Order. In the event that the contact person for the spread changes, Justice agrees to report the change, and provide new contact information, to the appropriate DMRE Regional Office within three (3) days of the change. 6. Each reclamation spread must be in operation for forty (40) hours each week, weather permitting. 7. Justice is required to perform routine maintenance on each spread, and must repair and/or replace any failed machinery within two (2) working days of failure or breakdown. . SECTION II: EQUIPMENT SPREAD PLAN AND PRIORITIES Equipment Spread A: HarlanILeslielBreathitt London and Middlesboro Regional Offices Order of Priority: A. Harlan County Permits as follows: 1. Sequoia 848-0270 First Priority: abatement ofNC 23-1064/C023-0036 CR for time. 2,700 feet of wall. Second Priority: abatement ofNC 23-1964/C023-0045 CR for time. 2,700 feet of wall. Third Priority: abatement of NC 23-2625 Clean out ponds or remove. Ponds are approved for removal. 2. Sequoia 848-9025 1 APPENDIX A First Priority: abatement ofNC 23-2339/CO-23-0705 - Construct and maintain the John's Branch refuse fill according to designs. Construct ponds and diversions for Amendment 3. Second Priority: abatement ofNC 23-2388/CO-23-0711- Install permit sign, perimeter markers & temporary sediment control. Stabilize, seed, and mulch slides. 3. Sequoia 866-5152 First Priority: abatement ofNC 63-0798 FTACO 63-0440 - Permittee needs to address a bad decant issue with their Coal Slurry Impoundment. 4. Sequoia 848-0274 First Priority: abatement ofNC 23-2365/CO 23-0697- Stabilize, seed & mulch slides, gully erosion & slumpage, repair ponds & Road E. 5. Sequoia 848-5459 First Priority: abatement ofNC 23-2367/CO 23-0709 - Reclaim face-up to AOC. 6. Sequoia 848-5485 First Priority: abatement o(NC 23-2285/CO 23-0707 - Stabilize, seed, and mulch slide areas. 7. Sequoia 848~7027 First Priority: abatement ofNC 23-2623 - Repair and replace road culverts. 8. Virginia Fuel 848-8082 First Priority: abatement ofNC 23-2455/CO 23-0668 - approximately 2,500 feet of wall. Second Priority: abatement ofNC 23-2757/CO 23-0662 - Construct pond as designed and certify. 9. Virginia Fuel 848-5512 First Priority: abatement ofNC 23-3011 Reclaim deep mine face-up. 10. Virginia Fuel 848-5510 First Priority: abatement ofNC 23-3189 - Reclaim 3 deep mine face-ups. 11. Virginia Fuel 848-0316 First Priority: abatement ofNC 23-2766ICO-23-0665 - Repair principal s pillway pipe. 12. Four Star 848-0249 First Priority: abatement ofNC 23-2564/C023-0164 - Has approximately 1,900 feet of wall. Second Priority: abatement of CO 23-0311 - Off-permit disturbance needs reclaimed. Third Priority: abatement of CO 23-0161 - Diversions need repaired. DEADLINE: All remedial measures must be completed by July 1, 2015. B. Breathitt County Permits as follows: 1. Kentucky Fuel 813-0354 First Priority: abatement ofNC 63-2643- Permittee needs to repair Ham Road #2, back:fi1l and grade trenching sites, seed and mulch affected areas 2 APPENDIX A and place alternate sediment control for affected areas. Repair General Hydrologic areas (erosion from Haul Road #2), seed and mulch. 2. Kentucky Fuel 813-0363 First Priority: FP: RV - Ensure to seed and mulch hot areas located on the disturbed areas of the permit. Second Priority: FP: BG - Rills and gulleys along Fill areas ofHF 44A and HF 45 are beginning to form and attention will need to be addressed in the very near future. Third Priority: FP: PL - Ensure to follow PMLU as per the approved application. DEADLINE: All remedial measures must be completed by September 1, 2015. Equipment Spread B: Pike Pikeville Regional Office Order of Priority: A. Kentucky Fuel Permits 1. Permit No. 898-0884 First Priority: abatement ofNC 53-3654 - (CR) Company has exceeded time limits specified in the approved permit application to complete Backfilling and Grading to approximate original contour in the Elkhorn and Fireclay coal seams from the location of Pond #3 in Road Branch of Bevins Branch along the Eastern side traveling North into Road Fork towards Hollowfill2-3. Also from Pond #3, areas into Main Bevins Branch on the Northeastern side extending to proposed Hollowfill #5-6 on these coal seam levels. These areas are on increments #3,4, &10. Second Priority: abatement ofNC 53-3654 - CWQ) Permittee has allowed water to leave permitted area without first passing through an approved sediment control structure associated with diversion BP30-D1 for which are not constructed as designed. Third Priority: NC 53-3654 - (SC) Permittee failed to construct pond 30. Fourth Priority: NC 53-3654 - Sediment level in BP 27 has exceeded the approved elevation as in the permit plan. Fifth Priority: NC 53-3654 - (DV) Permittee has failed to construct diversion # BP30-Dl. Sixth Priority: NC 53-3654 - (DS) (A) Dumping performed in hollow :fill 2-3 has the potential to impound water. (B) Instability and gullies on the face of hollow :6.119. (C) An Unstable area in Hollow Fill #9. (D) Permittee allowed surface water to flow through the under drain of Hollow fill 9. Seventh Priority: NC 53-3654 - (BG) Slumpage, rills, and gullies across from hollow:6.11 10. Company has allowed high wall to be exposed in excess of three (3) feet in various areas on increment #2 on both sides of Swamp Branch on the Elkhorn Coal Seam level. 2) On increment #16 on the Winifrede Coal Seam level a small depression has formed an holding 3 APPENDIXA water.3) On increments #2,&7 in Swamp Branch and increment #3 & 10 in Road Branch on the Elkhorn and Fireclay coal seam levels in various .locations rills and gullies in excess of 9 inches have formed causing erosion. Eighth Priority: abatement ofNC53-3654 - (OD) Violation #3 (OD) (A) An off-permit disturbance located Southwest of hollow fill #1 . (B) Permittee has allowed a large rock to move beyond the permit boundary northwest of bench pond #8 . Ninth Priority: abatement ofNC 53-3654 - (SS) Permittee has allowed materials to remain on the downslope in areas Northwest of Pond #29 and East ofPond#28. 2. Permit No. 898-0882 First Priority: abatement ofNC 53-1346 - Remove sediment from sedimentation structure 2 & dispose as per approved plan. Second Priority: abatement ofNC 53-3778 Permittee shall reclaim area Located as follows 1. Approximately 100 feet Northeast from Pond 26 thence approximately 200 feet Northwest. On Increment #1 2. Approximately 800 feet Northwest from Pond 23 thence approximately 1100 feet Northeast. On Increments #1 and #2. 3. Approximately 1400' North West from HF 5 at the permit edge thence approximately 800' North East to the corner of surface tract 35 thence approximately 500' North West. On Increment # 3 4. Approximately 600' South West from HF-1 thence approximately 400' North West. On Increment 3 5. Approximately 750' South West form HF-l thence approximately 400' North West to the Northern corner of surface tract 35 thence approximately 350' South West thence 650' South West. On Increment # 3 6. Approximately 700' North West from the Southern corner of surface tract 16 thence approximately 500' North West near the outcrop on Increment # 3 to conform to the time frame specified in the approved reclamation plan and 405 KAR 16:020. Permittee must seed and mulch all affected area. 3. Permit No. 898-0883 First Priority: abatement ofNC 53-3288/FTACO 53-0108 - SC remove sediment from sedimentation structure 18 & dispose as per approved plans. Second Priority: abatement ofNC 53-3286 - CR - return adequate equipment for bacldilling and grading to the permit area. Third Priority: abatement ofNC 53-2053 - HR stabilize, seed & mulch area below Pond 11 spillway where erosion has occurred. 4 APPENDIX A Fourth Priority: SC-(l) Follow the approved drainage plans for the areas of Sediment Ponds 3, 4, 5, 6,14,15,16,18,19 and 20. lithe approved drainage plan cannot be implemented as proposed, then obtain issuance of a revision that will allow an alternate sediment control plan to be utilized for the areas of Sediment Ponds 3, 4,5,6,14,15,16,18,19 and 20. (2) Either, construct Ponds 5, 7, and 8 to approved plans, and submit certifications of construction or obtain issuance of a revision that would allow alternate designs or plans to be implemented. Fifth Priority: HR- Cease creating any new disturbances in the watersheds above sediment structures 3, 4, 5, 6, 14, 15, 16, 18, 19, and 20, until the drainage areas above sediment structures 3, 4,5,6,14, 15, 16, 18, 19, and 20 have been backfilled, graded, seeded, and vegetation established, which complies with the approved model used for the design and function of sediment structures 3, 4,5,6, 14, 15, 16, 18, 19, and 20. Sixth Priority: DS- Construct hollow fill #1 as per approved designs. Construct necessary drainage facilities approved plan, and grade fill to achieve positive drainage approved plan. DEADLINE: All remedial measures must be completed by July 1, 2015. Work to abate NC 53-3654 must begin immediately after entry of the Agreed Order. B. Beech Creek Permit No. 898-0775 First Priority: abatement ofNC 53-3776 - Highwall west of Pond 7 needs to be reclaimed and ponds east of Pond 10 to be constructed and certified as mining advances. Second Priority: abatement ofNC 53-3996 - Area needs stabilized, seeded and mulched and brought under permit. Third Priority: abatement ofNC 53-3996 - Windrow East of Pond 10 needs spoil removed from it. DEADLINE: All remedial measures must be completed by September 1, 2015. Equipment Spread C: KnottIFloyd Prestonsburg Regional Office Order of Priority: A. Knott County Kentucky Fuel Permits: 1. Permit No. 860-0505 First Priority: KAR 16:020 - Permittee shall reclaim areas: 1) From approximate area east of DO#24 to area adjacent to proposed DO#26 on Increment 7. 2) All disturbed area of mining on Increment 9. 3) Approximate 360 feet of highwall southwest ofHF#6 on Increment 6. 4) All disturbed area of Area Mining on increment 10, to conform to the time frame specified in the approved reclamation plan and 405 KAR 16:020. 5 APPENDIX A Second Priority: KAR 16:130 - Repair surface diversions ofHF#7 according to approved permit plans and revegetate/rip-rap areas as required. Clean-out area between HF#7 core drain discharge and rock check area. Ensure underground core drain of HF#7 is exposed and freeflowing. Repair/construct surface diversions of Hollow Fill HF#6 and revegetate/rip-rap areas as required. Third Priority: K.AR 16:090 - Repair erosion of emergency spillway and ensure embankment is stabilized, and re-certify S8#7, revegetate and rockline areas as required. Remove or cut woody vegetative growth on embankment area, spillways area and emergency spillway area. Fourth Priority: KAR 16: 190 - Regrade, fill, or otherwise stabilize the rills and gullies; seed and mulch all disturbed areas on Increments 6 and 7. Regrade, stabilize, seed, and mulch slumpage of backfilled highwall on Increment 6 and 7 in the backfill area Fifth Priority: Reconstruct SS#3 according to approved permit plans and re-certify OR submit a permitting action (within 30 days) with a revised design reflecting the as-built configuration. Sixth Priority: KAR 16:200 - Permittee shall comply with the approved revegetation plan specified in the permit. Revegetate all graded back:5ll on Increments 6 and 7. Seventh Priority: Complete construction ofDO#17. Eighth Priority: Remove or cut woody vegetative growth on embankment area, and all spillway areas. 2. Permit No. 860-5349 First Priority: abatement ofNC 43-2939/C043-0510(SC) Pond#2 needs to be dipped. 3. Permit No . 860-5345 First Priority: abatement ofNC 43-3412 - K.AR 18:020 - Permittee shall reclaim areas on increments 1, 2, 3 and 4 to conform to the time frame specified in the approved reclamation plan and 405 KAR 18:020. 4. Permit No. 860-0504 Address FP statements in this order: First Priority: Grade and revegetate areas of slumpage and/or erosion in backfill. Second Priority: Maintain Access Roads culverts and durable road surface. Third Priority: Perform general maintenance of sediment structures cleanout, spillways, and emergency spillways, remove woody vegetation on embankment. 5. Permit No. 860-5342 Address FP statements in this order: First Priority: Grade and revegetate areas of slumpage and/or erosion in backfill. Second Priority: Maintain Access Roads culverts and durable road surface. 6 APPENDIX A Third Priority: Perform general maintenance of sediment structures cleanout, spillways, and emergency spillways, remove woody vegetation on embankment. 6. Permit No. 860-5350 Address FP statement: Maintain backfilled face-up area; eliminate slumpage and erosion areas. 7. Permit No. 860-5580 8. Permit No. 860-5338 First Priority: FP: (AC) Ensure all haul roads and access roads are monitored and maintained as per approved permit application. Second Priority: FP: (DV) Ensure all diversions are monitored and maintained as per approved permit application. 9. Permit No. 860-5341 Address FP statement: Perform general maintenance of diversion ditches 10. Permit No. 860-5344 First Priority: FP: (BG) Ensure all backfills are monitored and maintained as per approved application. Second Priority: FP: (DV) Ensure all diversions are monitored & maintained as per approved application. 11. Permit No. 860-5351 First Priority: Maintain access road culverts. Second Priority: Check sediment structures for cleanout. 12. Permit No. 860-9015 Address FP statement: AC Ensure all access roads are maintained in compliance with all provisions of the permit. 13. Permit No. 860-9016 First Priority: FP: RV Ensure that all areas of the downstream face exhibit substantial vegetative growth. Second Priority: FP: AC Ensure that all access roads are maintained in compliance with the approved permit. DEADLINE: All remedial measures must be completed by July 1, 2015. B. Floyd County Kentucky Fuel Permits 1. Permit No. 836-5581 First Priority: FP: (CR) Ensure adequate equipment is moved back on site to commence final reclamation. Second Priority: FP: (BG) Ensure the backfill along the face-up area has been properly graded as per approved permit application. Third Priority: FP: (RV) Ensure all backfills are seeded, establish proper vegetative cover as per approved permit application 2. Permit No. 836-5580 First Priority: FP: (SC) Ensure all principle and emergency spillways are monitored and maintained as per approved permit application. 7 APPENDIX A 3. Permit No'-836-8070 First Priority: FP: (WQ) Ensure all surface drainage is diverted to approved sediment structures. Second Priority: FP: (RY) Ensure proper vegetation is established throughout the entire permitted area as set forth by the approved permit application. Third Priority: FP: (OM) Ensure toxic materials are handled according to the approved permit application. Fourth Priority: FP: (EL) Monitor sediment structure effluent to maintain water quality standards. DEADLINE: All remedial measures must be completed by September 1,2015. SECTION ill: SPECIAL PERMIT ISSUES Please note that the three permits in this section is not in order of priority. The issues on the following permits should be dealt with concurrently and by the noted deadlines. A&G Coal 867-0498 First Priority: Return a mining spread of equipment to the permit. The equipment spread on Permit 867-0498 shall be in addition to the other spreads of equipment required by Section I and shall be dedicated to Permit No. 867-0498. This equipment spread is also to be used to abate other violations on the site. DEADLINE: 15 days from entry of the Agreed Order Second Priority: Eliminate the highwall cited in NC 53-3559 by mining and/or reclamation. DEADLINE: March 1, 2015. Third Priority: abatement ofNC 53-3645/CO 53-0534 - Gully erosion, construct pond Fourth Priority: abatement ofNC 53-3652/CO 53-0550 - Gully erosion DEADLINE: June 1, 2015. A&G is required to provide monthly updates on the progress of reclamation on the site to the Pikeville Regional Office and the Director of DMRE which include an engineering survey establishing the amount of unreclaimed highwall that is being reduced. Infinity 848-0282 (848-0234) and 848-0283 (848-0264) First Priority: Hire a reclamation contractor to abate all outstanding violations on the permits other than the CR violation listed. 8 APPENDIX A DEADLINE: 30 days from entry of Agreed Order The following NCs and COs must be abated: 1. NC 23-0516/CO 23-0141 2. NC 23-0865/CO 23-0128 3. NC 23-0228/CO 23-0142 4. NC 23-1692/CO 23-0127 (OD violation only) DEADLINE: March 1, 2015. Second Priority: By the terms of the Agreed Order, a 6 month postponement was granted for abatement of the CR violation cited in NC 23-1692/23-0127. At 6 months, the Cabinet will review the postponement and may extend for good cause, or decline to extend. When the postponement expires, the following requirements are triggered: 1. Return sufficient equipment to the permit to eliminate highwall. DEADLINE: 30 days from notice of expiration of postponement. 2. Eliminate all highwall by mining and/or reclamation. DEADLINE: 6 months from notice of expiration of postponement. Kentucky Fuel Permit No. 877-0207 Continue to backfill, grade and revegetate to maintain contemporaneous reclamation standards for time. This is an ongoing obligation. 9 APPENDIX B: PERMITTING ACTION PLAN AND SCHEDULE The following spreadsheet depicts the remaining pending permitting actions. These actions must be diligently pursued to issuance within six (6) months of the entry of the Agreed Order: APPLICATION_ NUMBER TYPE MINE_STATU S CODE 10 COMPANY 013824 A & G Coal Corporation 8670498 MI 5 7/9/2012 sm 013738 Four Star Resources Uc 8480249 MI 3 1/7/2014 ACR 013738 Four Star Resources Uc 8487027 MI 2 3111/2013 14:54 STO 5/7/2014 SP 013436 Infinity Energy, Inc 8480283 MI 9 5/14/2014 A2 013962 Kentucky Fuel Corporation 8130354 MI 1 211212013 STO 611212013 STO 013962 Kentucky Fuel Corporation 8138028 MT 6 6125/2014 ASN 013962 Kentucky Fuel Corporation 8138032 RN 6 013962 Kentucky Fuel Corporation 8138033 RN 6 51212014 POS 511212014 POS 6125/2014 A1 6/5/2014 SP 013962 Kentucky Fuel Corporation 8600503 MA 5 5/812013 ACR 013962 Kentucky Fuel Corporation 8605339 MI 5 013962 Kentucky Fuel Corporation 8605349 MI 7 013962 Kentucky Fuel Corporation 8605349 RN 2 013962 Kentucky Fuel Corporation 8607013 MT 2 013962 Kentucky Fuel Corporation 8609016 RN 3 013962 Kentucky Fuel Corporation 8980881 MI 5 SEa RECEIVED 013962 Kentucky Fuel Corporation 8980882 MT 4 013962 Kentucky Fuel Corporation 8980882 MI 8 STATUS ST DATE 3127/2014 T'NW 412112014 11:38 T'NW 2119/2013 300 6126/2013 MMS 1219/2013 T'NW 11/4/2013 ACR 1/3/2014 MMS 12120/2012 TRS 7/17/2014 AOR 5/812014 SP 3121/2014 A1 8/1212013 A1 6/5/2014 02 511312014 P1 . 5119/2014 A1 6/5/2014 02 5129/2014 02 5127/2014 A2 5/19/2014 A1 4/15/2014 A2 4/4/2014 A1 7/21/2014 A1 7/18/2014 A1 6/512014 A1 013962 Kentucky Fuel Corporation 8980882 MI 9 013962 Kentucky Fuel Corporation 8980883 MI 7 013962 Kentucky Fuel Corporation 8980884 MI 5 013962 Kentucky Fuel Corporation 8980884 MI 6 013495 Sequoia Energy LLC 8480270 RN 2 11/1/2013 ACR 6/8/2012 T'NW 013495 Sequoia Energy LLC 8480274 MI 3 3127/2014 ACR 5/7/2014 A2 013495 Sequoia Energy LLC 8485459 RN 4 4n12014 A2 013495 Sequoia Energy LLC 8485462 FR 1 013495 Sequoia Energy LLC 8485463 RN 2 12110/2013 T'NW 5/21/2013 FAC 2128/2014 TRS 013495 Sequoia Energy LLC 8485466 RN 1 1/3/2013 T'NW 7/1/2013 A2 013495 Sequoia Energy LLC 8485485 MI 2 013495 Sequoia Energy LLC 8487024 RN 5 3/27/2014 11:27 T'NW 6125/2012 TAC 5/15/2014 A1 3119/2014 A1 013495 LCSequoia Energy LLC 8488076 MT 5 013495 Sequoia Energy LLC 8489025 MI 7 2120/2014 MMS 3119/2013 T'NW 7m2014 A1 6/9/2014 A1 4/30/2014 A2 013495 Sequoia Energy LLC 8665152 MI 8 014985 Virginia Fuel Corporation 8480315 MA 16 014985 Virginia Fuel Corporation 8480316 MI 9 11/4/2013 ACR 5117/2012 T'NW 3127/2014 T'NW 6129/2011 ACR 014985 Virginia Fuel Corporation 8480316 MT 3 11/10/2011 T'NW 2128/2013 MMS 014985 Virginia Fuel Corporation 8485505 RN 6 1/14/2014 POS 014985 Virginia Fuel Corporation 8485508 RN 6 014985 Virginia Fuel Corporation 8485512 MI 3 4/3/2014 T'NW 8121/2012 POS 014985 Virginia Fuel Corporation 8485512 RN 3 014985 Virginia Fuel Corporation 8487036 RN 4 11/27/2013 ARA 8115/2012 T'NW 014985 Virginia Fuel Corporation 8488082 MI 11 8/9/2012 T'NW 014985 Virginia Fuel Corporation 8488082 RN 6 5/5/2014 POS 014985 Virginia Fuel Corporation 8489028 RN 6 5/512014 T'NW 7/10/2014 AP 411612014 AP 4/812014 A1 6/25/2014 01 7/18/2014 A1 4/9/2014 A2 3131/2014 A2 Bn/2013 A2 3/26/2014 A1 5/9/2014 A1 8128/2012 A2 1219/2013 A2 41412014 SP 4/1/2014 A1 5113/2014 A1 511212014 A1 APPENDIX B The following permitting actions should be assessed by Justice and an appropriate response made within 15 days of the entry of the Agreed Order: • A & G Coal Corp. 848-0287 NW • A & G Coal Corp 848-5465 NW • Kentucky Fuel Corp . 860-8020 OPR2 • Kentucky Fuel Corp. 860-9015 OPR2 • Kentucky Fuel Corp. 860-9016 OPR2 • Sequoia Energy LLC 848-0224 NW • Sequoia Energy LLC 848-0288 NW The following permitting action should be withdrawn and a new revision to address off-permit disturbance issues submitted within 15 days of the date of entry of the Agreed Order: • Sequoia Energy LLC 848-0270 AM 7 The following permitting actions will be checked for O&C compliance at the signing of the Agreed Order and issued, if no further outstanding issues are present: • Infinity 848-0283 RN-l • Kentucky Fuel 860-5351 RN-6 • Kentucky Fuel 877-0207 RN-l • Kentucky Fuel 898-0882 RN-3 • Sequoia 848-0274 RN-2 • Kentucky Fuel Corp. 860-0505 AMI • Kentucky Fuel Corp. 877-0207 AM2 2 APPENDIX 8 MONITORING WELLS. Justice must address the following well monitoring deficiencies by submitting permitting actions within 30 days of the entry of the Agreed Order: • Permit No. 860-0502 - GW 157-200, GW-2, GW-3, GW-4 • Permit No. 860-0503 - GW1v1P 1 • Permit No. 860-0504 - SGW-092P, GW-160, GW-2, GW-3, GW-6 o Permit No. 860-5339 - WW-2, WW-3, SGW-073P • Permit No. 860-5340 - WW-2, WW-3 • Permit No. 860-5341- GW-G157, GW 2, GW 3, GW-G100 • Permit No. 860-5342-GW-140, GW-160, GW-G100 • Permit No. 860-5343 - GW-1, GW-2, GW-3, GW-4 • Permit No. 860-5345 - GW-1, GW-2, GW-7, GW-099P • Permit No. 860-5347 - WW 2 • Permit No. 860-8020 - WW 3 3 APPENDIX OUO'foVL:\:lOOU BOEHL STOPHER & GRAVES LLP 137MAINSTREET. SUITE 200 POSJ' OFFICE BOX l/39 . P1KBVIl1.E. KENTUCK.Y 41502 \' TELEPHONE: 606-.<132-9670 FACSIMILE: 606-432·9680 January 29.2014 Hon. S. Bradford Smock Office of General Counsel #2 Hudson Hollow Frankfort; Kentucky 40601 RE: Strong Bros. Mining and Kentucky Fuel Corp. v, Energy and Environment Cabinet, Franklin Circuit Court, 13-CI-1386 Administrative File ~ FOVIFCOIPAH 43377 Deal'Mr. Smock, / Please accept this letter as written confirmation of our phone conversations and emails regarding the agreements reached in the above referenced claim, You have agreed to pass the Cabinet's Motion to Dismiss set for hearing in Franklin Circuit Court on January 29, 2014 contingent upon these agreed to terms, First, Kentucky Fuel agrees to pay the sum total of $100,001.00, to satisfy the civil penalties in only the matter referenced above.' Said amount will be payable in four (4) equal monthly installments beginning March 15, 2014, with the final payment being due on or before June 15, 2014. Second, Kentucky Fuel agrees to diligently pursue the transfer of permit, to GulfStream, Diligent pursuit, as used herein. means should any deficiencies in the application process be brought to the attention of Kentucky Fuel, Kentucky Fuel will rectify those deficiencies and return amended documents the cabinet within ten (l0) days of said notice, Third, in the event that said transfer is not issued, Kentucky Fuel acknowledges and accepts that it will be responsible for the total amount of civil penalties applicable to the above referenced matter, a total of :$139,500.00. This total would be due 011 June 15. 201"4. All payments previously made towards agreement would be applied towards this balance, Once Kentucky Fuels satisfies the terms herein regarding the payment of $100,001.00 in civil penalties and successfully transfers the permit which is the subject of the above actions, any and all disputes subject of the above-referenced civil case will be dismissed as will the administrative order dated October 29, 2013, appealed in the subject circuit court case. This letter of agreement is intended to be binding OD the parties as though It were a written contract/agreement, This letter represents tho totality of the agreement between the parties Kentucky Fuel Corporation, Strong Bros. Mining and the En.ergy and Environment Cabinet. Sincerely, Han Ju ie Ann Sharp AECON ~ . SUITE 2300. 400 WfSTMMKET S11tEET ID~ KENWay 40202-3354 4<14 WI!STSECOND i.EXJNCTON. 0mJOO 40507;040 1UEPHON£, 502-589-5980 l"B.a'HO'Nf: 85~252-6721 Iil.CSlM~ 502-561-BAD0 &'cs~1U:: 85e~53-j445 410 ftflO4,DWAY IMUCAH, KENTUay 42001 El..SaYEAST . sum20d,AOO PPARLSIlUET iE1£PHONE. 2700442-.4369 FACiIMILf: 270-442-.4(389 1EI.EPHONE. 812-948-0053 fAC$IMl~ 812·948-9233 NEW ..a-.lon: INDIANA 47l5O ,l'\UI'I- DO~III V LUfJll~ r ur cI. V~~ OVO'tVLClUUV Hon. Trent Robinson Boehl, Stopher & Graves, LLP P. O. Box 1139 Pikeville, KY 41502-1139 'Phone: (606) 432·9670 / .f..: ~-U·I-L~:F"14 14:L8 rf'UM- JAN 'i 9 2ijVi -gp.NI