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This is a text-only version of the document "Shepherd Bend Mine â€“ Application for ASMC Permit # P3945 - 2010". To see the original version of the document click here.

ALABAMA SURFACE MINING COMMISSION PERMIT APPLICATION INDEX GUIDE Permit Map -- http://surface-mining.alabama.gov/P3945/DATA/PERMITMAP.dwf Shepherd Bend, LLC Shepherd Bend Mine ASMC Permit Number: P-3945 Part I Administrative A. Identification B. Ownership and Control C. Property Ownership, Interests and Rights D. Permit Area Information E. Public Notice and Availability for Inspection Part II Environmental Resources Information Fish, Wildlife and Environmental Values Cultural, Historical and Archeological Resources Threatened and Endangered Species Lands Unsuitable for Mining Geology Groundwater Hydrology Surface Water Hydrology Probable Hydrologic Consequences Determination Hydrologic Reclamation Plan I. Land Use Information Vegetation Information Part III Operation and Engineering A. General Operation Information B. Engineering Plan 1. Existing Structures 2. Ponds, impoundments, banks, dams, and embankments 3. Diversions 4. Excess Spoil 5. Transportation Facilities C. Blasting Plan D. & E. Hydrologic Monitoring Plan Part IV Reclamation Plan A. Postmining Landuse B. Grading and Contouring C. Revegetation Part V Bonding Part VI Verification of Permit Application Part VII Final Verification of Permit Application

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S

STATE OF ALABAMA SURFACE MINING COMMISSION
(xx) Permit Application for a Surface Coal Mine ( ) Permit Application for an Underground Coal Mine ( ) Permit Application for a Preparation Facility
PART I A. IDENTIFICATION 1.PERMIT APPLICANT Name: Shepherd Bend, LLC Street Address: 120 North Walston Bridge Road, Building #2 City: Jasper State: AL Zip: 35504 Mailing Address: P.O. Box 2322 City: Jasper State: AL Zip: 35502 Telephone Number: ( 205 ) 221-7747 Social Security Number (Voluntary): Employer Identification Number: 26-1292248 ASMC License#: L-0786 2.ENTITY OR PERSON RESPONSIBLE FOR PAYING ABANDONED MINE LAND RECLAMATION FEES Name: Shepherd Bend, LLC Street Address: 120 North Walston Bridge Road, Building #2 City: Jasper State: AL Zip: 35504 Mailing Address: P.O. Box 2322 City: Jasper State: AL Zip: 35502 Telephone Number: ( 205 ) 221-7747 Social Security Number (Voluntary): Employer Identification Number: 26-1292248 ASMC License#: L-0786 3.IDENTIFY THE OPERATOR FOR THIS MINE IF DIFFERENT FROM THE PERMITTEE Name: Applicant Street Address: City: State: Zip: Mailing Address: City: State: Zip: Telephone Number: ( ) Social Security Number: (Voluntary): Employer Identification Number: ASMC License# 4. CONTACT PERSON FOR PERMIT REVIEW ISSUES AND CORRESPONDENCE Name: David Muncher Mailing Address: P.O. Box 2322 City: Jasper State: AL Zip: 35502 Telephone Number: ( 205 ) 221-7747

PART I-1

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S

PART I B. OWNERSHIP AND CONTROL
1. PERMIT APPLICANT OWNERSHIP AND CONTROL.
At the time of filing of this application provide an update of all information contained in the applicant's license file or certify that the information contained in the license is accurate and complete. The updated information shall be submitted on Part I A through Part I F of the License application form. Check one of the following.

A license update is included Information contained in the license file is accurate and complete at the time of filing of this application. No update is included.
Following notification that the permit appears eligible for issuance, the applicant must certify that all information in this application and the license file pertaining to ownership and control, surface mining history and violation history is still valid or the applicant must submit the appropriate update information.

2. OPERATOR OWNERSHIP AND CONTROL. If someone other than the permittee has been identified
as the operator under this permit, an update of the ownership and control information contained in the operator's license file must be provided or certify that the information contained in the license file is accurate and complete. The updated information shall be submitted on Part I A through Part I F of the License application form. Check one of the following: NOT APPLICABLE

3.CONTROL OF MINING OPERATION THROUGH CONTROL OF COAL TO BE MINED.
Provide the information below for any person or entity who owns or controls the coal to be mined under this permit and who, by lease, sublease, or other contract: A. has the right to receive the coal after mining, or, B. has the authority to determine the manner in which the operator or permittee conducts surface coal mining operations.

(USE ADDITIONAL SHEETS IN THE FORMAT BELOW IF NECESSARY) Name: Applicant Street Address: City: State: Zip: Mailing Address: City: State: Zip: Telephone Number: Social Security Number(Voluntary): - Employer Identification Number: ASMC License#:

PART I-2

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S

PART I C. PROPERTY OWNERSHIP, INTERESTS AND RIGHTS
1. OWNERSHIP OF PROPERTY TO BE MINED AND RIGHT OF ENTRY. INSTRUCTIONS: Show the property ownership boundaries of each parcel of land in the permit
area on the permit map or an overlay of the same scale as the permit map. If the surface estate is severed from the mineral estate, show and describe the ownership of each estate separately. In the spaces below, identify: 1. 2. 3. Every current legal or equitable owner(s) of record (as found in a standard search of title) of the property; The holders of record of any leasehold interest in the property; and, Any purchaser of record under a real estate contract of the property.

Describe the basis of the applicant's legal right to enter and mine on all properties contained in the permit application. If the mineral estate has been severed from the surface estate, describe the basis of the legal right to enter and mine both the surface and mineral separately. Give the nature of such right (i.e. lease, deed, contract, etc.), where recorded, describe from whom, to whom, and the date executed, and whether that right is the subject of pending litigation.

USE ADDITIONAL SHEETS IN THE FORMAT BELOW AS NECESSARY Page 1 of 4 Legal description of property or permit map symbol: ALAWEST Surface/Mineral/or Fee Simple (both): Surface Legal owner(s) of record: Alawest-Al LLC Address: P.O Box 412 City: Northport Holders of leasehold interest: Address: City: Purchasers under a real estate contract: Address: City: Description of right to enter or mine:

State: AL Zip: 35476 State: State: Zip: Zip:

Describe the type of document or conveyance which grants the right of entry, disturbance or mining. Indicate from whom the right was acquired and to whom the right was granted. If the grantor of the right is not the owner(s) of property, identify all grantors and grantees of the right beginning with the owner(s) and ending with the permit applicant.

Describe Right of Entry (If deed, indicate where recorded): Lease

Granted From: Alawest-AL,LLC

Granted To: Shepherd Bend, LLC.

Date Granted: 04/22/10

Litigation Pending? (Yes or No) If yes, explain. No.

PART I-3

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S

PART I C 1. (CONTINUED)
Part I C 1 Page 2 of 4 Legal description of property or permit map symbol: SOTERRA, LLC Surface/Mineral/or Fee Simple (both): Surface Legal owner(s) of record: Soterra, LLC Address: P.O. Box 1705 City: Cullman Holders of leasehold interest: Address: City: Purchasers under a real estate contract: Address: City: Description of right to enter or mine:

State: AL Zip: 35056 State: State: Zip: Zip:

Describe Right of Entry (If deed, indicate where recorded): Lease Pending

Granted From:

Granted To:

Date Granted:

Litigation Pending? (Yes or No) If yes, explain. No.

Soterra, LLC

Shepherd Bend, LLC

Pending

Legal description of property or permit map symbol: UNIVERSITY OF ALABAMA Surface/Mineral/or Fee Simple (both): Surface, Mineral and Fee Legal owner(s) of record: University of Alabama System, C/O Office of Counsel Address: Box 870106 City: Tuscaloosa State: AL Zip: 25487 Holders of leasehold interest: Address: City: State: Zip: Purchasers under a real estate contract: Address: City: State: Zip: Description of right to enter or mine:
Describe the type of document or conveyance which grants the right of entry, disturbance or mining. Indicate from whom the right was acquired and to whom the right was granted. If the grantor of the right is not the owner(s) of property, identify all grantors and grantees of the right beginning with the owner(s) and ending with the permit applicant.

Describe Right of Entry (If deed, indicate where recorded): Lease Pending

Granted From:

Granted To:

Date Granted:

Litigation Pending? (Yes or No) If yes, explain. No.

University of Alabama

Shepherd Bend, LLC

Pending

PART I-4

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S

PART I C 1. (CONTINUED)
Part I C 1 Page 3 of 4 Legal description of property or permit map symbol: DR. HEATON Surface/Mineral/or Fee Simple (both): Surface Legal owner(s) of record: William Haynes & Christine Ann Heaton Address: 912 Bainbridge Crossing City: Muscle Shoals State: AL Zip: 35661 Holders of leasehold interest: Address: City: State: Zip: Purchasers under a real estate contract: Address: City: State: Zip: Description of right to enter or mine:
Describe the type of document or conveyance which grants the right of entry, disturbance or mining. Indicate from whom the right was acquired and to whom the right was granted. If the grantor of the right is not the owner(s) of property, identify all grantors and grantees of the right beginning with the owner(s) and ending with the permit applicant.

Describe Right of Entry (If deed, indicate where recorded): Lease

Granted From:

Granted To:

Date Granted:

Litigation Pending? (Yes or No) If yes, explain. No.

William and Christine Heaton

Shepherd Bend, LLC

04/01/10

Legal description of property or permit map symbol: DOROTHY BULLOCKS Surface/Mineral/or Fee Simple (both): Surface Legal owner(s) of record: Dorothy Bullocks Address: 1037 Reeds Ferry Road City: Cordova State: AL Zip: 35550 Holders of leasehold interest: Address: City: State: Zip: Purchasers under a real estate contract: Address: City: State: Zip: Description of right to enter or mine:
Describe the type of document or conveyance which grants the right of entry, disturbance or mining. Indicate from whom the right was acquired and to whom the right was granted. If the grantor of the right is not the owner(s) of property, identify all grantors and grantees of the right beginning with the owner(s) and ending with the permit applicant.

Describe Right of Entry (If deed, indicate where recorded): Lease Pending

Granted From:

Granted To:

Date Granted:

Litigation Pending? (Yes or No) If yes, explain. No.

Dorothy Bullocks

Shepherd Bend, LLC

Pending

PART I-5

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S

PART I C 1. (CONTINUED)
Part I C 1 Page 4 of 4 Legal description of property or permit map symbol: SHEPHERD BEND, LLC Surface/Mineral/or Fee Simple (both): Mineral (87.81%) Legal owner(s) of record: Shepherd Bend, LLC; Attn: David Muncher Address: P. O. Box 2322 City: Jasper State: AL Zip: 35502 Holders of leasehold interest: Address: City: State: Zip: Purchasers under a real estate contract: Address: City: State: Zip: Description of right to enter or mine:
Describe the type of document or conveyance which grants the right of entry, disturbance or mining. Indicate from whom the right was acquired and to whom the right was granted. If the grantor of the right is not the owner(s) of property, identify all grantors and grantees of the right beginning with the owner(s) and ending with the permit applicant.

Describe Right of Entry (If deed, indicate where recorded): Deed (not recorded)

Granted From:

Granted To:

Date Granted:

Litigation Pending? (Yes or No) If yes, explain. No.

Drummond Co., Inc.

Shepherd Bend, LLC

10/06/10

Legal description of property or permit map symbol: SHEPHERD BEND, LLC Surface/Mineral/or Fee Simple (both): Mineral (12.19%) Legal owner(s) of record: Shepherd Bend, LLC; Attn: David Muncher Address: P. O. Box 2322 City: Jasper State: AL Zip: 35502 Holders of leasehold interest: Address: City: State: Zip: Purchasers under a real estate contract: Address: City: State: Zip: Description of right to enter or mine:
Describe the type of document or conveyance which grants the right of entry, disturbance or mining. Indicate from whom the right was acquired and to whom the right was granted. If the grantor of the right is not the owner(s) of property, identify all grantors and grantees of the right beginning with the owner(s) and ending with the permit applicant.

Describe Right of Entry (If deed, indicate where recorded): Deed: Walker Co. Alabama Book: 2230 Page: 174

Granted From:

Granted To:

Date Granted:

Litigation Pending? (Yes or No) If yes, explain. No

Regions Morgan Keegan (Trustee for Allendale Land Company)

Shepherd Bend, LLC

08/17/10

PART I-6

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S

PART I C. (CONTINUED)
2. OWNERSHIP OF SURFACE AND MINERAL LANDS CONTIGUOUS TO THE AREA TO BE MINED. INSTRUCTIONS: Provide the information below for the owners of record of all surface and mineral
properties contiguous to any part of the proposed permit area.

USE ADDITIONAL SHEETS AS NECESSARY IN THE FORMAT BELOW Page 1 of 1 Name: Alawest-Al LLC Address: P.O. Box 412 City: Tuscaloosa State: AL Interest owned (Surface, Coal or Fee Simple): Surface Type of Interest (Owner, Lease, or Other): Owner Name: Soterra, LLC Address: P.O. Box 1705 City: Cullman State: AL Interest owned (Surface, Coal or Fee Simple): Surface Type of Interest (Owner, Lease, or Other): Owner Name: University of Alabama System; c/o Office of Counsel Address: Box 870106 City: Tuscaloosa State: AL Interest owned (Surface, Coal or Fee Simple): Surface Mineral Fee Type of Interest (Owner, Lease, or Other): Owner Name: Dr. William and Cristine Heaton Address: 912 Bainbridge Crossing City: Muscle Shoals Interest owned (Surface, Coal or Fee Simple): Type of Interest (Owner, Lease, or Other):

Zip: 35476

Zip: 35056

Zip: 25487

State: AL

Zip: 35661

Name: Dorothy Bullocks Address: 1037 Reeds Ferry Road City: Cordova State: AL Interest owned (Surface, Coal or Fee Simple): Surface Type of Interest (Owner, Lease, or Other): Owner Name: Shepherd Bend, LLC; Attn: David Muncher Address: P. O. Box 2322 City: Jasper State: AL Interest owned (Surface, Coal or Fee Simple): Coal Type of Interest (Owner, Lease, or Other): Owner

Zip: 35550

Zip: 35502

PART I-7

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S

PART I C. (CONTINUED)
3. INTERESTS OR PENDING INTERESTS IN LANDS CONTIGUOUS TO THE PERMIT AREA. INSTRUCTIONS: Give the legal description of all lands contiguous to the permit area for which the permit
applicant:

1. Holds an interest, 2. Holds an option, or 3. Has made a bid for ownership, lease or other interest. USE ADDITIONAL SHEETS IN THE FORMAT BELOW IF NECESSARY
Page 1 of 1

Legal description: SE/NE, NE/SW, SW/SW Sec. 34; SW/NW, NW/SE, SW/SE, NW/SW, NE/SW,
SW/SW Sec. 35; T15S; R6W; NW/NW, NE/NW, SE/NW, NW/NE, NE/NE, SE/NE, SW/NE Sec. 2, T16S, R6W; Walker Co., Alabama

Describe the nature of the interest: Shepherd Bend, LLC has no interest in any contiguous
lands, except those which are owned or controlled by lease.

Legal description: Describe the nature of the interest:

PART I-8

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S

PART I D. PERMIT AREA INFORMATION 1. Give the requested term of this permit:
5 years.

2. Give the legal description of the land upon which the applicant proposes to conduct surface coal
mining operations. List each quarter-quarter section, section, township, range, and county.
SE/NE, NE/SE, SE/SE Sec. 34, SW/SW, NW/SW, NE/SW, SE/SW, NW/SE, SW/SE Sec. 35 Township 15 South, Range 6 West, NW/NW, NE/NW, SE/NW, NW/NE, NE/NE, SW/NE, SE/NE Sec. 2 Township 16 South; Range 6 West; Walker County, Alabama

3. Give the acreage of the permit, each increment and the type of bonding. a. Total permit acreage: 286 acres b. Give the acreage and type of bond for each mining increment:
Increment
1. 2. 3. 4. 5.

Acres
38 101 69 70 8

Type Bond Proposed
Certificate of Deposit Certificate of Deposit Certificate of Deposit Certificate of Deposit Certificate of Deposit

c. Identify the increment(s) on which mining will initially begin upon issuance of this permit:
Increment I

4. Has any acreage in the proposed permit area been previously disturbed by mining?
( ) YES ( X )NO If yes, supply the following for any and all previously disturbed areas:

a. Show the boundaries of the previously disturbed area(s) on the permit map and identify with an
appropriate symbol.

b. List, for each area, the permit number under which it was disturbed and the number of acres.
Indicate the status of each permit as Unreleased, Grading released, or 100% released.(If no permit, indicate as such.) Permit Acres Status Permit Acres Status

For each area which has not been reclaimed or received a 100% release, indicate whether you intend to assume responsibility for reclamation of the area under this permit and its performance bond(s). ) NO

5. Is disturbance to be conducted within 300 feet, measured horizontally, from an occupied dwelling?
( X ) YES ( If YES, attach a signed waiver from the owner of the dwelling indicating the minimum distance disturbance will be allowed by the owner. Disturbance pertains to Increment V and a waiver will be submitted to ASMC prior to bonding of
PART I-9

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S

increment.

PART I-10

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S

6. Is disturbance proposed within 100 feet of a public road right-of-way or will a public road be closed
or relocated? ( ) YES ( X ) NO If YES, enclose a copy of the approval granted by the government entity which has jurisdiction over the road. The approval must state the minimum distance disturbance will be allowed to the road or road right-of-way. 7. List all other licenses and permits required to conduct mining operations including, but not limited to, MSHA I.D. and NPDES. Give the identification or permit number, the name and address of the issuing authority, and the status or date of approval or issuance of each: Permit ID or Permit Number Issuing Authority Address *1 *2 Status or Date of Issuance 8-25-10 7-21-08 8-10-08

MSHA ID 01-03315 MSHA NPDES AL0079162 ADEM CORPS SAM-2008-457 CORPS See NPDES MAP *1 135 Gemini Circle, Suite 213, Birmingham, AL 35209 *2 P.O. Box 301463, Montgomery, AL 36130-1463

8. Is the property in the permit covered by zoning or other land use restrictions? (

)YES ( X )NO.

If yes, indicate the jurisdictional authority and zoning or land use restriction for the entire permit area. If more than one zoning classification exists for the permit area, identify the boundaries of each on the permit map. Jurisdictional Authority Zoning Classification Allows mining? Yes or No

9. Describe access to the proposed mine from a known point on the nearest public highway: From the City of Jasper, travel south on Hwy 269 for approximately 1.8 miles and exit right on ramp for US-78 East; proceed for approximately 9.2 miles to Exit 72 and exit right on ramp and turn right onto Co. Road 61for 0.5 mile. Turn left onto Dobbins Road for 1.8 miles and keep straight onto Granny Hyche Road for 1.3 miles. Road name changes to Underwood Ferry Road for 0.1 mile. Turn left onto Reeds Ferry Road and proceed to the mine site on left. 10. Did the applicant receive assistance from the Small Operator Assistance Program in preparing this application? ( )YES ( X )NO If YES, list SOAP I.D. Number:_____________________ 11. Submit a certificate of proof of Liability Insurance with this application. See ASMC Master File.

PART I-11

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S

PART I E. PUBLIC NOTICE AND AVAILABILITY FOR INSPECTION 12. Give the name of the approved public office in which a copy of this application will be filed for
public inspection following notification of completeness: Alabama Surface Mining Commission - Jasper Office (On-line at: www.surface-mining.state.al.us/)

13. Enclose a copy of the notice of filing of this application which will appear in a newspaper of general
circulation in the vicinity of the mine and identify the name of the newspaper: The Daily Mountain Eagle (See Attachment I-E-13 and Proof of Publication)

PART I-12

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S Part II, A

PART II - ENVIRONMENTAL RESOURCES INFORMATION A. Fish, Wildlife and Related Environmental Values (1) Describe the measures to be taken, using the best technology currently available, to minimize
disturbances and adverse impacts to fish and wildlife and achieve enhancement of this resource where practicable within the proposed permit area. [784.18(b)(6), 817.97(a)] Shepherd Bend Mine will minimize the disturbance and adverse impact of fish and wildlife at the proposed permit area by constructing sedimentation control structures before the initiation of clearing and grubbing operations in accordance with section 880-X-10C-.16 and 880-X-10C-.17. These structures will be designed to contain and limit siltation to existing streams and areas adjacent to the permit area. The structures will serve as containment areas in which the mine runoff water will be tested and treated as necessary to insure that the hydrologic balance is maintained in accordance with section 880-X-10C-.12. Additional steps to minimize disturbance and adverse impacts on the fish and wildlife in the area will include minimizing areas of disturbances in the pre-mining area of the mine site and developing the area in stages with progressive backfilling and timely reclamation. Earth-moving activities will be planned in such a manner that the minimum amount of disturbed area will be exposed for a minimum amount of time.

(2) Describe in detail the measures to be taken to restore or enhance, or steps to be taken to avoid
disturbance of, habitats of unusually high value for fish and wildlife located within the proposed permit area [784.18(b)(6), 817.97(d)(2)] There are no areas of unusually high value for Fish and Wildlife within the proposed permit. See U.S Fish and Wildlife Comments and Alabama Department of Conservation and Natural Resources and Yokely Environmetal Consulting Service's Environmental Assessment (3) Are there any wetland areas such as streams, lakes, marshes, etc., located in or adjacent to the proposed permit area which will be disturbed by the mining activities? [784.18(b)(6), 817.97(d)(3 & 4)] ( ) Yes ( X ) No If Yes, briefly describe the feature(s), its location and the extent of the proposed disturbance. Describe in detail measures to be taken to restore the area. See Department of the Army Corps of Engineers Letter and CORPS PRE-CONSTRUCTION NOTIFICATION, CORPS NWP 21 Reinstated Letter and CORPS NWP Extension. If a stream channel diversion is proposed, describe in detail (including maps, diagrams or cross sections, if necessary) how the provisions of 817.44(d) will be met. Include a copy of all other necessary State or Federal approvals. None proposed.

PART.II.doc-1

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S Part II, A

(4) Is fish and wildlife habitat to be primary or secondary postmining land use? [784.18(b)(5)]
( ) Yes ( X ) No If Yes, describe in detail the postmining measures to be taken to attain this land use including the target specie(s) of wildlife, plant species to be used and a map delineating the proposed arrangement of plant groupings and water sources on the permit area following reclamation.

(5) If the premining land use is fish and wildlife habitat and the proposed postmining land use is
cropland, describe the postmining provisions to be made for wildlife. Attach a map showing the location of trees, hedges, or fence rows to be used to diversify habitat types if appropriate. [784.18(b)(5)] Not Applicable

(6) If the postmining land use is to be residential, commercial or industrial, describe the postmining
provisions to be made for wildlife such as greenbelts, trees, or hedge rows composed of plant species useful for wildlife. [784.18(b)(5)] Not Applicable

(7) If any exceptions to Section 817.117(c)(1-3) are proposed, describe in detail the proposed practice
including target species of wildlife, plant species to be used, planting rate and/or stocking density, planting pattern with appropriate map and anticipated results of the proposed practice. Not Applicable

PART.II.doc-2

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-39XX-64-15-S Part II, B, C

B. Cultural, Historical and Archaeological Resources (1) Describe and identify any cultural or historical resources located in or adjacent to the proposed permit
area which are listed on the National Register of Historic Places. Delineate the location of the resources on the permit map. Describe in detail the measures to be taken to minimize or prevent adverse impacts on the resource(s). (783.12, 784.14, 784.31) See Attachment II-B.

(2) Describe and identify any known significant archaeological sites located in or adjacent to the
proposed permit area. The description shall be based on all available information including, but not limited to, data of State and local archaeological agencies. Delineate the site(s) on the permit map. (783.12, 784.14) See Attachment II-B.

C. Threatened and Endangered Species
Identify any threatened or endangered species of plants or animals, or critical habitats of such species located in or adjacent to the proposed permit area. Delineate the location of the specie(s) or habitat(s) on the permit map. (784.14) See U.S Fish and Wildlife Comments and Alabama Department of Conservation and Natural Resources and Yokely Environmetal Consulting Service's Environmental Assessment

PART.II.doc-3

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-39XX-64-15-S Part II, D

D. Land Unsuitable For Mining (1) Are there any areas located in or adjacent to the proposed permit area which have been designated
unsuitable for mining or are under study for such designation in an administrative proceeding? ( X ) Yes ( ) No If Yes, give the name(s) of the area(s) if known. Delineate the area(s) on the permit map. (784.14) 300 ft. offset to occupied dwelling-See Part I, D, 5 and Map No. 1 (2) Describe in detail the measures to be taken to minimize or prevent adverse impacts on any public park. (784.31) There are no public parks in or adjacent to the permit area.

(3) Are requests for waivers included in this application? (761.12)
( ) Yes ( X ) No

(4) Do you claim exemption to this part based upon: (a) Operations existing on the proposed permit area on August 3, 1977; or
( ) Yes ( X ) No

(b) Operations subject to valid existing rights on August 3, 1977; or
( ) Yes ( X ) No

(c) Substantial legal and financial commitments made prior to January 4, 1977? [762.13, 778.16(b)]
( ) Yes ( X ) No If Yes, give reason(s) for claim with appropriate documentation.

PART.II.doc-4

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-39XX-64-15-S Part II, E

E. Geology (880-X-8E-.06(2)) See Attachment 2.1 and Attachment 2.2 (1) Give a description of the geology within the proposed permit and adjacent areas including, but not
limited to, the logs of drill holes, and highwall descriptions (if existing), with thicknesses of overburden and coal down to and including the depth of either the stratum immediately below the coal seam to be mined or any aquifer which may be adversely impacted by mining. Describe areal and structural geology of the permit and adjacent areas. Use maps and cross sections. Include published information where available. The description of structural geology shall include structure contours on the bottom of the lowest coal seam to be mined and other parameters which may influence the required reclamation.

(2) Chemical analyses conducted to identify acid-forming or toxic-forming zones shall be made on a
representative number of samples of the overburden within the permit area. Sampling of the overburden may be collected at five-foot intervals from a lithologic unit or from the entire thickness if the unit is less than five feet thick, when the lithology is below the oxidized zone; from the oxidized zone, one composite sample shall be collected and analyzed. Samples may be taken from drill holes or from unweathered channel samples from a highwall. Analysis of each overburden sample shall be run for total sulfur. If the sulfur content is one percent or greater, it is recommended that additional analyses be run for pyritic sulfur. Each sample should be analyzed for neutralization potential. The acid-base account should be calculated. Results shall be included in the permit application, including the overall average acid-base account.

(3) Total sulfur analysis of the coal seam(s) to be mined shall be run and reported with the permit
application. The coal sample should be obtained from overburden sampling sites.

(4) The name, depth, thickness, strike and dip of the coal seam(s) to be mined shall be included in the
permit application.

(5) Location of the coal crop line(s) within the proposed permit area are to be shown on an appropriate
map.

(6) All necessary maps and cross-sections needed to support the geologic description shall conform with
the requirements of 880-X-8F-.04.

(7) When used to collect information for the permit application, elevations and locations of test borings,
cores samples or other sample sites shall be provided (topographic map accuracy is adequate).

(8) (9)

Geochemistry: Give sampling and analytical data. Note in areas where local concerns exist, additional overburden testing may be required or testing for additional parameters may be required.

(10) Include a certification signed by a professional qualified in geology who prepared or directed the
geologic study.

PART.II.doc-5

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-39XX-64-15-S Part II, F

F. Groundwater Hydrology (880-X-8E.06(1)) See Attachment 2.3 and Attachment 2.4
The permit application shall contain a description of the groundwater hydrology within the proposed permit and adjacent areas. In obtaining the necessary base line or premining information, the applicant should be guided in conducting the studies by the availability and usage of groundwater in potentially impacted areas with particular emphasis being placed on those locations where present or potential future usage of the groundwater is of local importance. The description should include a comprehensive survey of existing water wells, springs and other groundwater resources in the permit and adjacent areas. Information addressed in the survey shall include:

(1) Baseline Quantity. Include approximate rates of discharge or usage and depth to the water in the coal, and
each water-bearing stratum above and potentially impacted stratum below the coal seam. Water levels should be taken at time of sampling and reported for each monitoring site.

(2) Give lithologic descriptions and thickness of any water-bearing zones. (3) Results of aquifer test(s) shall be reported identifying the transmissivity, draw down, recovery rates, and
specific capacity, if required.

(4) Well inventory. Location, ownership, description, usage of groundwater resources (light industrial,
agricultural, domestic, etc.) estimating the approximate amount of water used per day must be included. Total depth of domestic wells should be included where available. Note if measured or reported.

(5) Baseline quality of the groundwater should be determined using sampling and laboratory techniques cited in
880-X-8E-.06(1)(a) to determine at a minimum: (i) pH; (ii) Total iron, mg/l; (iii) Total Manganese, mg/l; (iv) Total dissolved solids or specific conductance at 25° C; (v) Sulfates, if there are any groundwater uses in the permit or adjacent areas (minimum 1 sample per monitoring site).

(6) Describe any geological structures, including their orientation, such as: (i)Joint systems; (ii) Faults or fault zones; (iii) Folds; (iv) Bedding planes.
Give information on premine groundwater movement. (7) Appropriate maps and cross-sections needed to supplement the description of the groundwater hydrology shall conform with the requirements of 880-X-8F-.04.

(8) Use water sampling and analytical methods listed in the references cited in 880-X-8E-.06(1)(a). Describe
the sampling and analytical methods used in obtaining water quality and quantity measurements of each site.

(9) Give sampling and analytical information for each sample.

PART.II.doc-6

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-39XX-64-15-S Part II, G

Surface Water Hydrology (880-X-8E-.06(1))

See Attachment 2.5

The permit application shall contain information and a description of the surface water that will flow into or from the proposed permit area in a form and to a degree that will describe seasonal variations in both quantity and quality of the surface water within the proposed permit area and adjacent areas. The premine or baseline study should be designed to a level that takes into consideration water availability and present and potential future usage of the surface water. The period of time for which such a survey should be conducted is six months, but should be adequate to properly evaluate low flow and high flow rates and quality based on either site specific studies, or where available, from existing data files which are reasonable and statistically representative of the proposed permit and potentially impacted adjacent areas. At a minimum, the submitted information on the surface water hydrology shall include:

(1) Name of the watershed(s) which will receive discharge from the proposed permit area. The
watershed name should be presented as the name of the primary stream in the watershed and as the USGS Hydrologic Unit Code and SCS Sub-watershed number (e.g., 03150201-010). The SCS watershed number is available from the ASMC office. Show the location of any discharge into any surface-water body in the proposed permit and adjacent areas.

(2) Give the name, location, ownership, use and description of all surface-water bodies such as streams,
lakes, and impoundments or springs in the proposed permit and adjacent areas.

(3) Give known uses of the surface water leaving the proposed permit area (or that will receive
discharges from it), if any.

(4) Water quality data shall be submitted to identify seasonal flow characteristics of, at a minimum: (i) (ii) (iii) (iv) (v) (vi)
pH; Total iron, mg/l; Total Manganese, mg/l; Total suspended solids; Total dissolved solids or specific conductance at 25° C; Acidity and alkalinity.

(5) Water quantity. Include measured flow rates in cfs for each sample analyzed under (4) above. Give
the drainage area and describe each base line monitoring station.

(6) Use water sampling and analytical methods listed in the references cited in 880-X-8E-.06(1)(a).
Describe the sampling and analytical methods used in obtaining water quality and quantity measurements at each site.

(7) Precipitation data representative of site conditions shall be provided in the permit application if
modeling or other simulation methods are employed in evaluating the effects of mining on the hydrologic regime.

(8) The location of monitoring stations used to collect data for the permit application should be shown on
a map which conforms to the standards of 880-X-8F-.04.

(9) Give sampling and analytical data for each sample.

PART.II.doc-7

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-39XX-64-15-S Part II, H, I

H. Probable Hydrologic Consequences Determination [880-X-8E-.06(1)(e)]
See Attachment 2.6 The permit application shall contain a determination of the probable hydrologic consequences (PHC) for the proposed permit area and adjacent areas. The PHC is the projected results of proposed operation which may reasonably be expected to change the quality or quantity of the surface and groundwater; the surface or groundwater flow, timing and pattern; the stream channel conditions; and the aquatic habitat on and off the permit area. The PHC shall be based on baseline hydrologic, geologic and other information collected for the permit application and may include data statistically representative of the site. The PHC should contain documentation of the PHC process. The PHC determination shall include findings on:

1. Whether adverse impacts may occur to the hydrologic balance. 2. Whether acid-forming or toxic-forming materials are present that could result in the
contamination of surface or groundwater supplies.

3. Whether the proposed operation may proximately result in contamination, diminution or
interruption of an underground or surface source of water within the proposed permit or adjacent areas which is used for domestic, agricultural, industrial, or other legitimate purpose.

4. What impact the operation will have on: A. Sediment yield from the disturbed area; B. Acidity, total suspended and dissolved solids and other important water quality parameters
of local impact at seasonal flow rates;

C. Flooding or stream-flow alterations; D. Groundwater and surface water availability, and E. Other characteristics as required by the RA.
The PHC should contain a certification signed by a professional qualified in hydrology who prepared or directed the PHC determination and Part II, F & G.

I. Hydrologic Reclamation Plan [880-X-8E-.06(1)(g)]
The application shall include a plan, with maps and descriptions, indicating how the relevant requirements of Subchapter 880-X-10C including 880-X-10C-.12 and 10D-.14 will be met. The plan shall be specific to the local hydrologic conditions. The plan should be bound and certified by the qualified professional who performed the work. See Attachment 2.7

PART.II.doc-8

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-39XX-64-15-S Part II, H, I

I. Land Use Information (1) Describe in detail the land use(s) existing at the time of the application. Give the number of acres and
describe sufficiently so the areas can be identified on a map. If necessary, include a map showing land use units. (783.22) The proposed permit area consists of 286.0 acres: NO. OF ACRES 278 8 LAND USE Undeveloped: logging - no management, cleared for Commercial/Industrial Permanent Water Impoundments

(2) Give the applicable land use classification under local law, if any. (783.22)
Not Applicable

(3) Is any of the area prime farmland? (783.27, 785.17)
( ) Yes ( X ) No If Yes, submit the information required in Section 785.17. If No, show or state how the determination was made. See Attachment II-I-3

(4) Has the land use of any area on the proposed permit changed within the last 5 years? (783.22)
( ) Yes ( X ) No If Yes, identify those areas and describe their historic use.

PART.II.doc-9

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-39XX-64-15-S Part II, H, I

(5) Has any area within the proposed permit been previously mined? (783.22)
( ) Yes ( X ) No If Yes, complete the following:

(a) Describe the area or show on a map. (b) Was the area reclaimed? ( ) Yes ( ) No
If Yes, under what law? ( ) 1969, ( ) 1975, ( ) Interim.

(c) Describe the land use of the area prior to any mining, or if this cannot be determined, describe the
land use(s) of surrounding unmined land. (783.22)

(6) Describe, in detail, land uses of areas adjacent to the proposed permit area. (783.22)
Areas, immediately adjacent to the permit area, support undeveloped areas consisting primarily of pine trees and mixed deciduous trees. Outer areas to the west contain Reeds Ferry Road (county) with residences located on both sides and connecting to Hwy 269. The north, east and south is bordered by the Mulberry Fork of the Black Warrior River. Areas across the river are undeveloped and have other surface coal mines.

PART.II.doc-10

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-39XX-64-15-S Part II, H, I

(7) Discuss the capability of the lands within the permit area to support a variety of land uses other than
the current use. (783.22) CORN (BU) ------SOYBEANS (BU) ------SERICEA (AUM) 6.5 ---FESCUE (AUM) 6.5 ----

SOIL TYPE Nauvoo-Townley, NaE 4 to 20% slopes Montevallo, McE, 30 to 60% slopes Mooreville, MsA 0 to 3% slopes Sunlight-Townley, StE, 15 to 45% slopes

95 ----

35 ----

8.0 3.0

8.5 4.0

*AUM - Animal-unit-month BU - Bushel

(8)

Give the premining productivity of the proposed permit area based on actual yield data or estimates based on data from similar sites. (If estimates, give sources of data used.) (783.22) SOIL TYPE Nauvoo-Townley, NaE Montevallo, McE Mooreville, MsA Sunlight-Townley, StE PREMINING Loblolly pine Loblolly pine Loblolly pine Loblolly pine SITE INDEX 85 70 100 70

PART.II.doc-11

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-39XX-64-15-S Part II, J

J. Vegetation Information
Delineate on a map or describe in detail the existing plant communities within the proposed permit areas (and adjacent areas if required). List the predominant overstory, understory, and ground cover species (use common name only). Give approximate acreage covered by each plant community and approximate age of timber stands. (783.19) The existing plant communities for the undeveloped/unmanaged land (approximately 286 acres), within the proposed permit area consist primarily of cleared open areas having fescue, lovegrass, clover vetch, crabgrass, pokeweed, blackberry and Johnsongrass. Steep hilly sections have mixed Virginia and Loblolly Pine, various oaks, hickory and sweetgum trees; sections along the river have willow, sweetgum and water oak. Understory vegetation includes blackberry, greenbriar, and honey suckle. Water depressions have cattails and rushes.

PART.II.doc-12

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S PART III, A

PART III - OPERATION PLAN
A. General Operation Information 1. Describe the type and method of coal mining procedures and major equipment to be used. (780.11) The area method of surface mining will be used at Shepherd Bend, LLC’s Shepherd Bend Mine. Mining will be accomplished by utilizing a shovel, rock trucks, dozers, loaders, rotary drills, a portable fuel truck, and bulk truck. This equipment list represents the present need of the operation; however, equipment may vary depending upon the future needs of the operation, mining conditions and substitution of equipment for repairs and replacement. The below list demonstrates the capability to operate and reclaim this proposed permit area. – Shovel/Backhoe/Dragline - Loaders - Rock Trucks –Motor Grader Scrapers Refer to Attachment III-A-1 and OPERATION MAP - D-10 Dozers - D-11 Dozers – Overburden Drills – Water Truck

2. Describe the sequence and timing of increments to be mined (as shown on permit map) over the total life of the permit. (780.11) The timing increment are as follows: Increment No. 1 2 3 4 5 Acres 38 101 69 70 8 From Issuance of the permit End of Increment #1 End of Increment #2 End of Increment #3 End of Increment #1 Estimate Life 20 Months 20 Months 20 Months 20 Months Life of Mine

The sequence of mining operations will be generally as follows: 1) 2) 3) 4) 5) 6) 7) 8) 9)
PART.III.doc

Installation of BMP’s for Sediment Control Construction of Sediment Control Structures Clearing and Grubbing Topsoil Removal ( if required) Overburden Drilling and Blasting Overburden Removal Coal Recovery Re-Grading Revegetation

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S PART III, A

3. Attach a narrative explaining the construction, modification, use, maintenance, and removal of the following facilities: (780.11) (a) (b) (c) (d) Coal removal, handling, storage, cleaning, and transportation structures and facilities; Spoil, coal processing waste and non-coal waste removal, handling, storage, transportation and disposal structures and facilities; Mine facilities; and Water pollution control facilities. See Attachment III-A-3 4. Describe the means to be used to maximize the use and conservation of coal reserves in the permit area. (780.18, 816.59) a)-Mining the deepest seam that is economically feasible to mine. b)-Rehandling overburden in order to maximize coal recovery that would normally be lost in the spoil. c)-Processing and blending coal that in its “raw” condition would not have a market. 5. Describe measures to be taken to ensure that all debris, acid-forming and toxic-forming materials and materials constituting a fire hazard are disposed of in accordance with 816.89 and 816.103; include contingency plans to prevent sustained combustion of such material. (780.18) See Attachment III-A-5

PART.III.doc

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S PART III, A

6. Give a description, including appropriate cross-sections and maps, of measures to be used to seal or manage mine openings, bore holes, wells and other openings within the proposed permit area. (780.18, 816.13-816.15) Mine openings within the permit area (other than blast holes) will be eliminated by the following methods: Exploration drill holes: See Attachment III-A-6

Will be backfilled with cuttings from the drilling process. The upper portion of the hole will be backfilled with clay and compacted to prevent drainage from entering ground water. Monitoring wells: See Attachment III-A-6

Monitoring Wells - Groundwater monitoring wells will be cased using PVC pipe of equal diameter of the drilling bit used. This casing will extend a minimum depth equal to the depth necessary to reach competent rock material to prevent filling of the well. The casing depth may vary depending upon the depth of the aquifer being targeted for monitoring. Groundwater monitoring wells will be temporarily sealed using a PVC cap of equal diameter, as casing requires. Groundwater monitoring wells will be permanently sealed at the time of abandonment with a concrete cap. Mine openings: See Attachment III-A-6

There are no know abandoned underground mines in this present plan. However, any mine openings, old works (abandoned underground mines), auger holes, etc., which may be encountered during the mining operation, will be mined through. Any mine openings that are encountered along the final highwall or final pit end walls will be sealed by the following manner: Prior to the backfilling or shooting of the final highwall, all mine openings, auger holes etc., will be sealed with a clay material to an adequate height above the opening to prevent possible pollution of surface and groundwater and to reduce fire hazards. The clay material outside the mine opening will be compacted to a permeability no greater than 1 x 10-6cm/sec. When all mining is completed, the highwalls will be eliminated and the area reclaimed to the approximate original contour and revegetated in accordance with the approved reclamation plans. Gas & Oil Wells: See Attachment III-A-6

There are no know oil or gas wells in this present plan. However gas and oil wells which may be encountered during the mining operation will be sealed or re-sealed by the following process: The owner of the well will submit an abandonment plan to the Alabama Oil and Gas Board to abandon the well. It will be sealed in accordance with their plan and specifications. After coal removal, sealing of the abandoned well will be in accordance with the detailed drawing in Attachment 3.4. If the owner proposed to temporary abandon the well and resume production after mining a plan to the Oil and
PART.III.doc

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S PART III, A

Gas Board will have to be submitted and approved.

PART.III.doc

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S PART III, A

7. Give a description of steps to be taken to comply with applicable water quality laws, regulations and health and safety standards. (780.18) Surface runoff will be routed through an approved sediment structure for monitoring and treatment, as necessary to assure discharge compliance with applicable State and Federal Laws and Regulations. In-house personnel or consultants will monitor discharges from the sediment structures. Sediment ponds provide control for suspended solids, iron, pH, and manganese. It is not anticipated that treatment for iron, pH, and manganese will be necessary; however, should treatment become necessary, it will be accomplished by the following: Chemical treatment, such as caustic soda, hydrated lime, or aqueous sodium hydroxide solution, may be used, to treat water entering the drainage course of the sediment basins or directly in the sediment basins in order to achieve water quality compliance with State and Federal Laws. With hydrated lime or caustic soda used to correct pH imbalances, the iron and manganese will precipitate to the bottom of the basins and not be discharged. Additional methods of treatment, such as floating silt fences or flocculation bricks, may also be implemented for control and treatment of Total Suspended Solids. These measures will be taken to maintain compliance with NPDES requirements. Health & Safety Standards are continuously monitored by an ongoing safety program. All dust, noise and other required control tests will be current and will be performed as necessary MSHA certified personnel. Haul roads will be maintained with water and/or materials to minimize fugitive dust emissions.

8. Is surface mining to be conducted within 500 feet of an underground mine? (780.27, 816.79) ( ) Yes ( X ) No

If Yes, describe measures to be used to comply with Section 816.79. Attach a map showing the location and extent of known workings in accordance with 780.14(a)(13). Attach a copy of MSHA approval.

PART.III.doc

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S PART III, B

Engineering Plans All cross-sections, maps and plans related to operations, reclamation and structures must comply with Section 780.10. Plans, appropriate calculations and conclusions shall be presented in a clear and logical sequence and shall take into account all applicable factors necessary to evaluate the proposed plan or design. 1. Existing Structures. (780.12, 786.21) (a) Describe each existing structure to be used, its location, current condition, approximate dates of construction and evidence (including relevant monitoring data) showing whether or not the structure meets the performance standards of Subchapter K or Subchapter B, whichever is more stringent and demonstrate whether or not the use of existing structures will pose a significant harm to the environment or public health or safety.
Not Applicable

(b)

If an existing structure requires modification or reconstruction to meet the performance standards, attach a compliance plan which includes design specifications, construction schedule, monitoring procedures, and evidence that the risk of harm to the environment or public health or safety is not significant during modification or reconstruction. Not Applicable

PART.III.doc

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S PART III, B

Ponds, impoundments, banks, dams and embankments. (780.25)

(a) Submit a general plan which complies with Section 780.25(a)(1) for each proposed
sedimentation pond, water impoundment, and coal processing waste bank, dam or embankment to be located within the proposed permit area. See Attachment III-B-2-A, and GENERAL PLAN WATERSHED MAP

(b) Submit detailed design plans which comply with Sections 780.25(a) (2 & 3) and 816.46,
for each sedimentation pond to be constructed on the increment you currently propose to mine. If the sediment pond is to remain as a permanent water impoundment, design plans shall also comply with Section 816.49. See Attachment III-B-2-A and detailed design plans for: BASIN 005, BASIN 006, BASIN 007, BASIN 008

(c) Submit detailed design plans which comply with Sections 780.25(a) (2 & 3) and 816.49,
for each temporary or permanent water impoundment to be constructed on the increment you currently propose to mine. See Attachment III-B-2-A and detailed design plans for: BASIN 005, BASIN 006, BASIN 007, BASIN 008

(d) Submit detailed design plans, which comply with Sections 780.25(a) (2 & 3) and 816.81816.85, for each coal processing waste bank to be constructed on the increment you currently propose to mine. None proposed.

(e) Submit detailed design plans which comply with Sections 780.25(a) (2 & 3) and 816.91816.93 for each coal processing waste dam and embankment to be constructed on the increment which you currently propose to mine. None proposed. 3. Diversions (780.29, 816.43, 816.44) Are diversions of overland flow or stream channel diversions proposed? ( X ) Yes ( ) No If Yes, complete the following: (a) Is the diversion to be permanent? ( ) Yes ( X ) No

PART.III.doc

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S PART III, B

(b) Describe in detail the proposed diversion and include plans, maps and cross-sections

which comply with 816.43 and 816.44. Temporary diversions required for Shepherd Bend Mine are shown on the General Plan Watershed Map and a typical section of proposed diversions is included in this application and described in the design and construction guidelines for diversions. Should the need for diversions other than shown become evident, they will be constructed under the same Guidelines within the area permitted and bonded. After all mining and reclamation activities are complete the diversions will be reclaimed and revegetated. See Attachment III-B-3 for referenced Guidelines. See GENERAL PLAN WATERSHED MAP for diversion locations. (c) If diversions are temporary, enclose plans for removal including a timetable and plans for restoration of vegetation, channel characteristics, etc. See Attachment III-B-3 for referenced Guidelines.

(d) Enclose approvals of other governmental agencies where required. None required.

PART.III.doc

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S PART III, B

Disposal of Excess Spoil. (780.35, 816.71) Are excess spoil fills proposed? ( ) Yes ( X ) No If Yes, complete the following: (a) Show on a map the location of all proposed fills and provide cross-sections of the proposed site and the design of the disposal structures.

(b) Include the results of the geotechnical investigation showing: (1) A description of physical characteristics of bedrock and geologic conditions in the disposal area; and

(2) A determination of possible adverse affects from subsidence due to past, present or future underground mining.

(3) Location of springs, seeps or other groundwater observed or anticipated in the disposal area;

(4) A technical description of the rock to be used in construction of rock chimney cores or rock drainage blankets, if applicable;

PART.III.doc

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S PART III, B

(5) Results of stability analyses including strength parameters, pore pressures and long-term seepage conditions; and

(6) Engineering design assumptions, calculations, and any alternatives considered.

(d) Include a surface water drainage and control plan for the fill.

(e) Are rock-toe buttresses or keyway cuts to be used? ( ) Yes( ) No If Yes, describe or show: (1) The number, location and depth of test borings or test pits used in describing subsurface conditions; and

(2) Engineering specifications used in the design

PART.III.doc

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S PART III, B

5. Transportation Facilities. (780.33, 780.37) (a) Describe the measures to be taken to ensure the interest of the public and landowners
affected are protected if disturbance within 100 feet of the right-of-way or relocation of a public road is proposed. 1) Safety berms will be constructed adjacent to roadways to contain traffic. 2) Proper sign, informing the traveling public of the disturbance, will be posted along the road right-or-ways 500 feet from the beginning of the disturbance. 3) All safety requirements of the appropriate public health and safety agency(s) will be followed.

(b) Describe any unique design, feature, or structure which is necessary for the road to meet the performance standards of Subchapter K using any necessary maps, plans, or crosssections. See Attachment III-B-5 for specifications for Ancillary Roads and Primary Roads. Also see the detailed design plans, Primary Road Plans, for Primary Roads No. 1, 2 and 3 included in with this application. (c) Describe, in detail, the measures to be taken during construction, maintenance and use of the transportation facilities to prevent damage to fish and wildlife and their habitat; public and private property; and erosion, siltation, and pollution of water. Silt fences, hay dams, drainage ditches, vegetation and other prudent practices shall be used to minimize erosion and control runoff. All silt and erosion control facilities will be constructed in a progressive manner to coincide with the construction of the access road. Cut and fill slopes created by road construction shall be constructed in a manner to provide a drainage system that will reduce runoff concentration and shall be graded to ensure stabilization to prevent erosion. All cut and fill slopes will be vegetated. Refer to Attachment III-B-5.

PART.III.doc

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-39XX-64-15-S PART III, C

III. C. BLASTING PLANS. See Blasting Plan for applicable responses.

PART.III.doc

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-39XX-64-15-S PART III, D

D. Hydrologic Monitoring Plan. (779.13) Attach a plan for the monitoring of surface water including those parameters and sampling frequencies required to meet the specifications of the NPDES permit. If a perennial or intermittent stream flows through the proposed permit or potentially impacted off-site areas, develop and attach monitoring plans which logically relate baseline or premining quantity and quality conditions with those to be monitored during surface mining and reclamation operations. At a minimum, the plan shall include: (i) (ii) (iii) (iv) Sample frequency; Site locations; Parameters to be monitored; and Appropriate maps which comply with requirements of Section 780.10(b)

If the predictive evaluation of the groundwater indicates that adverse on-site or off-site impacts may occur to an aquifer, the applicant shall develop a groundwater monitoring plan which logically relates the analysis of baseline or premining conditions to approved postmining land uses. The plan shall list: (i) (ii) (iii) (iv) Parameters to be monitored, including water levels; Sample frequency; Site locations; and Appropriate maps and cross sections which comply with requirements of Section 780.10(b).

See HYDROLOGIC MONITORING PLAN and Hydrologic Monitoring Plan map If, according to the results of the PHC, it is determined that groundwater monitoring may not be necessary, the applicant shall submit with the permit application sufficient documentation, including geologic and hydrologic relations, to enable the Commission to make a decision regarding a waiver of the monitoring of the groundwater. See HYDROLOGIC MONITORING PLAN

PART.III.doc

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S PART III, I

Plans for Recording and Reporting Data.

Describe how surface and groundwater quantity and quality data will be collected, recorded, and reported to the regulatory authority according to Section 816.52. Monitoring reports of discharge from the point sources will be reported to the Regulatory Authority quarterly according to the NPDES Schedule. Parameters to be reported include pH, total suspended solids, settleable solids, total iron, and total manganese if acid mine drainage conditions exist. Exceedance of effluent limitations will be reported to the Regulatory Authority within five days after analyses become available. If effluent limitations are revised at any time during this permit, the reporting of monitoring data will be altered to coincide with these changes. Monitoring data collection, recording, and reporting for other than NPDES discharges will be done as specified in the Hydrologic Monitoring Plan.

PART.III.doc

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S

PART IV - RECLAMATION PLAN A. Postmining Land Use (1) Describe the proposed postmining land use(s) for the permit area. If more than one land use is proposed, show on a map and give acreage for each use. Include comments from the legal owner of record concerning the proposed land use. (780.23, 816.133) 280 acres Undeveloped or No Current Use (including Pond 006) and 6 acres for permanent water impoundment Ponds 005, 007 and 008 as Fish and Wildlife. See Land Owner Comments-Leases and Post Mine Land Use Map

(2) Is the proposed land use different from the current land use? [780.23, 816.133] ( ) Yes ( X ) No If Yes, complete the following: (a) Is the area zoned for the proposed land use? ( ) Yes ( ) No ( ) N/A (b) Is the proposed use compatible with adjacent land uses and applicable local and state land use policies? ( )Yes ( ) No (c) Explain the feasibility of the proposed land use as related to land use trends, and explain how the land use will be developed, achieved, and sustained. (d) Include letters of commitment from outside parties ensuring the provision of any necessary public facilities and any state and local governmental agencies which have to initiate, implement, approve or authorize the proposed land use. (e) Enclose design plans for the proposed postmining land use, if applicable.

PART.IV.doc

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S

(B) GRADING AND CONTOURING. (1) Enclose detailed plans with appropriate cross sections or maps which satisfy the requirements of Section 780.18(b)(3 & 4). See Attachment IV-B-1 Grading & Contouring Plans and Drawing 4.1 Reclamation Cross Section

(2) Complete the following timetable: [780.18(b)(1)] # months after coal is removed % of permit which will be graded and contoured

For Mine Area

Rough backfilling and grading at Shepherd Bend Mine will follow within 180 days after coal removal or four (4) spoil ridges from the active pit unless otherwise approved by the ASMC.

(3) On appropriate map(s), show representative values for the following: [780.18(b)(3), 816.102] (a) Percent of slope before mining; and (b) Proposed postmining slope including final slope of the highwall(s) in percent. NOTE: The premine natural slopes average approximately 33 percent, ranging from 16 to 52 percent (as measured and shown on the PERMIT MAP). The postmining slopes over the entire permit area will average 33 percent or less and range from approximately 16 to 50 percent. The majority of all slopes will not appreciably exceed 33 percent. And, the Final highwall average slope will not exceed 33 percent. Actual final graded slopes will vary somewhat from the anticipated configuration as shown on the cross-sections in Drawing 4.1 Reclamation Cross Section.

PART.IV.doc

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S

C. REVEGETATION (1) Outline procedures for soil testing required to determine type and amount of soil amendments to be applied and to evaluate results of topsoil handling and replacement. (780.18, 816.25) Once the texture criteria for soil material has been met, the final texture samples taken shall be sent to a qualified soil testing laboratory where the following tests shall be conducted: %sand, %silt, and %clay, textural classification, pH, total sulfur, acid-base account, fertility ratings for phosphorus, potassium, and magnesium, and amendment recommendations for post mining revegetation for limestone, nitrogen, P2O5 and K2O. Results of this analysis will be used to determine the amount of soil amendments, if any, to be applied to the plant medium.

(2) Are selected overburden materials to be used as a supplement or substitute for topsoil? ( ) Yes ( X ) No If Yes, provide results of analyses, trials, and tests required under Section 816.22(e). (779.21)

(3) Are commercial or introduced species to be used?

( ) Yes

( X ) No

If Yes, give a narrative with supporting references which show that the species meet the requirements of Section 816.112. (780.18, 816.112)

(4) Is the area to be reclaimed for fish and wildlife habitat?

( ) Yes

( X ) No

If Yes, list the species of plants to be used with a brief description of how they meet the criteria of Section 816.97(d)(6). [780.18(b)(5 & 6), 816.97(d)(6)] Although the area will be returned to Undeveloped and not reclaimed for wildlife and fish, Basins 005, 007 and 008 will remain as permanent water impoundments under the Fish and Wildlife postmine landuse. Basin is proposed as a temporary impoundment at
PART.IV.doc

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S

this time.

PART.IV.doc.IV-4

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S

(5) Complete the following schedules for each increment or sub-area of the permit area. [780.18(b)(5)]

VEGETATION SCHEDULE TOTAL PERMIT AREA Temporary Vegetation Temporary vegetation will be incorporated into the permanent mixture. Permanent Vegetation Planting rate 25-40 lbs/ac 25-30 lbs/ac 2-5 lbs/ac 5-10 lbs/ac 5-10 lbs/ac 5-15 lbs/ac 5-10 lbs/ac 10-15 lbs/ac 5-10 lbs/ac 0.5-1 lbs/ac or 700 stems/ac Planting methods Broadcast Planting dates Next normal season of Spring or Fall that is favorable for planting conditions. Areas to be planted Disturbance that will not be re-affected and composes sufficient area to make up a management unit.

Species* KY 31 Fescue Sericea Lespedeza Kobe Lespedeza Annual Ryegrass Crimson Clover Yuchi Clover Common Bermuda Bahiagrass Weeping Lovegrass Loblolly Pine

• These are some of the more common species used. However, the mixture may not be limited to these species as depending on availability, time of year and site specific conditions. • See Attachment IV-C-5

PART.IV.doc

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S

(6) Describe, in detail, proposed husbandry practices to be used. [780.18(b)(5), 805.13(b)(3)] Rills and gullies that may develop on reclaimed land will be repaired by the placement of hay bales in them and reseeding; or filling with spoil material and grading as necessary, then disking, reseeding and mulching of the area. Areas of inadequate vegetative cover will be reseeded according to the planting techniques described earlier in the response to Question IV-C-5. (See Attachment IV-C-5)

(7) Describe, in detail, the measures and sampling methods to be used to determine and demonstrate success of revegetation; or methods to demonstrate the productive capacity of reconstructed prime farmland. (780.18, 816.116) Productivity will be determined in accordance with ASMC's Technical Manual #1, “Approved Statistical Analysis and Sampling Techniques for Determining Revegetation Success on Surface Mined Lands in Alabama”, or by other methods as approved by the ASMC.

PART.IV.doc

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S

PART V - BONDING A. Site Conditions (805.11) (1) Briefly describe the site conditions within the increment which you are currently proposing to mine by answering the following: (a) Average premining slope 33% (b) Percent sandstone 40% (c) Final highwall slope (average) 33% (3H:1V) (d) Acres Prime Farmland (e) Acres Abandoned Land 0 0

(f) Average pH of topsoil 4.8 Note: If pH range over the increment area is greater than one pH unit (units 1 through 14), give approximate number of acres which fall within each unit. (g) Overburden acid-base account (only if total sulfur exceeds 0.5%). Total Sulfur is less than 0.5% . B. Estimate of Reclamation Cost (780.18) Give a detailed estimate of your cost of reclamation for the increment you are currently proposing to mine. Give individual cost estimates for grading, highwall elimination, topsoil (or topsoil substitute) replacement, revegetation and any other cost which may be applicable (prime farmland, hydrologic factors, etc.). Show CALCULATIONS. See Attachment V-B

PART.V.doc

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S

PART VI - VERIFICATION OF PERMIT I, the undersigned operator and holder of an A.S.M.C. license, do hereby submit this as my application for a permit to engage in surface coal mining operation and certify that the information in this application is true and correct to the best of my information and belief. This application is submitted in conformance with the rules and regulations of the Commission and it is agreed that any operations pursuant to the permit will be conducted in accordance with those rules and regulations. I further certify that I will keep the Commission advised of any change of facts as may pertain to the license information or this permit application. Shepherd Bend, LLC Licensee: By: David Muncher, President License No. L-0786

STATE OF ALABAMA WALKER COUNTY Before me, the undersigned authority, personally appeared David Muncher who being

duly sworn upon oath, deposed and said, that he has read the foregoing application, that he is the responsible official of the applicant who executed the application, that the facts and matters contained therein are true and correct to the best of his information and belief, and that he executed the same for the purposes therein expressed. Sworn to and subscribed before me, this day of 2010.

___________________________________ NOTARY PUBLIC

COMMISSION EXPIRES

Applicant: SHEPHERD BEND, LLC Mine Name: SHEPHERD BEND MINE Permit Number: P-3945-64-15-S PART VII-FINAL VERIFICATION OF PERMIT APPLICATION P-3945-64-15-S I, the undersigned applicant and holder of an A.S.M.C. license do hereby certify that: X The information in the license file regarding ownership and control and violation information is accurate and complete as of this date. The information in the license file regarding ownership and control and violation information is not accurate and complete as of this date. The necessary update is attached. This verification is submitted in conformance with the rules and regulations of the Commission and it is agreed that any operations pursuant to the permit will be conducted in accordance with those rules and regulations. I further certify that I will keep the Commission advised of any change of facts as may pertain to the license or this permit information. Shepherd Bend, LLC Permittee: License No.: L-0786 (IF APPLICABLE)

By: David Muncher, President

STATE OF ALABAMA) WALKER COUNTY )

Before me, the undersigned authority, personally appeared David Muncher who being duly sworn upon oath, deposed and said, that he has read the foregoing application, that he is the responsible official of the applicant who executed the application, that the facts and matters contained therein are true and correct to the best of his information and belief, and that he executed the same for the purposes therein expressed. Sworn to and subscribed before me, this day of 2010.

___________________________________ NOTARY PUBLIC

COMMISSION EXPIRES