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This is a text-only version of the document "South Heart - Lignite Mine Application - Ch 1 - Intro and Legal - 2010". To see the original version of the document click here.

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1.1

INTRODUCTORY, LEGAL, FINANCIAL, COMPLIANCE, AND RELATED INFORMATION ................................................................................................................ 1
Introductory Information .................................................................................................... 1 1.1.1 Application Form ......................................................................................................... 1 1.1.2 Approval Forms............................................................................................................ 1 Legal Information ............................................................................................................... 2 1.2.1 Legal Description of Permit Area (NDCC 38-14.1-14(1)(a)) ...................................... 2 1.2.2 Permit Area Map (NDCC 38-14.1-14(j)) ..................................................................... 2 1.2.3 Proof of Filing Fee (NDCC 38-14.1-13(b)) ................................................................. 2 1.2.4 Newspaper Publication Notice (NDCC 38-14.1-18(1)) ............................................... 2 1.2.5 Certificate of Liability Insurance (NDCC 38-14.1-14(3)) ........................................... 2 1.2.6 Filing with County Auditor (NDCC 38-14.1-13(2)) .................................................... 3 Business Information, Identification of Interests and Right of Entry ................................. 3 1.3.1 Applicant Information .................................................................................................. 3 1.3.2 Mine Information (69-05.2-06-01(1)(b))...................................................................... 4 1.3.3 Name of Officers, Directors, and Share Holders, and Organizational Structure of SHC (NDCC 38-14.1-14(1)(c)(e) and NDAC 69-05.2-06-01(1). ................................ 4 1.3.4 Name of other Mines Owned or Controlled Either by the Applicant or any Person Who Owns and Controls the Applicant (NDCC 38-14.1-14(1)(e) and NDAC 69-05.2-06-01(1)(f)) ......................................................................................... 4 1.3.5 Permit Area Surface and Coal Interest ......................................................................... 4 1.3.6 Adjacent Surface and Coal Interest (NDCC 38-14.1-14(d), NDAC 69-05.2-06-01 (1)(a)(c), and NDAC 69-05.2-08-02(1)) ...................................................................... 6 1.3.7 Certificate of Authenticity (NDAC 69-05.2-06-03) ..................................................... 6 Surface Owner Protection Act Compliance Information (NDCC 38-18-06(1)) ................. 7 1.4.1 Surface Owner Consent ................................................................................................ 7 1.4.2 Surface Owner Notification Letters.............................................................................. 7 Other Compliance Information ........................................................................................... 7 1.5.1 Current and Previous Permits and Permit Applications, including Pending Applications (NDAC 69-05.2-06-02(1) and NDCC 38-14.1-14(1)(f)) ........................ 7 1.5.2 Permit Suspensions or Revocations and Bond Forfeitures (NDCC 38-14.1-14(1)(h) and NDAC 69-05.2-06-02(2)) ...................................................................................... 7 1.5.3 Violation Identification (NDCC 38.14.1-14(1)(g) and NDAC 69-05.2-06-02(3)(4)(5)) ................................................................................... 8 1.5.4 Other Licenses and Permits .......................................................................................... 8 1.5.5 Relationship to Areas Designated Unsuitable (NDCC 38-14.1-05, NDCC 38-14.1-07, NDCC 38-14.1-21(3)(d) and NDAC 69-05.2-04) ........................................................ 8 1.5.6 Entities and/or Persons Who Prepared or Who Consulted in Preparing This Application (NDAC 69-05.2-05-02(3)) ..................................................................... 14

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LIST OF TABLES
Table 1.3-1 Table 1.5-1 Ownership and Control Information Other Required Licenses/Permits Applicable for the South Heart Lignite Mine

LIST OF FIGURES
Figure 1.0-1 Figure 1.2-1 Figure 1.3-1 Figure 1.3-2 Figure 1.3-3 Figure 1.4-1 Permit Area Newspaper Publication Map South Heart Coal LLC Corporate Structure Surface Ownership Coal Ownership Landowner Notification Map

LIST OF APPENDICES
Appendix 1.1-1 Appendix 1.2-1 Appendix 1.2-2 Appendix 1.2-3 Appendix 1.2-4 Appendix 1.3-1 Appendix 1.3-2 Appendix 1.3-3 Appendix 1.3-4 Appendix 1.4-1 Appendix 1.5-1 South Heart Lignite Mine Permit Application Form (SFN 10522) Metes and Bounds Legal Description of Permit Area Proof of Filing Fee Newspaper Notice of Filing for a Permit to Conduct Surface Coal Mining Operations Certificate of Liability Insurance Surface Ownership Coal Ownership Surface and Coal Lease Agreements Certificate of Authenticity Surface Owner Notification Letters Contact List

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INTRODUCTORY, LEGAL, FINANCIAL, COMPLIANCE, AND RELATED INFORMATION

This is an application for a permit to engage in surface coal mining and reclamation operations in the State of North Dakota. This application has been compiled by Golder Associates, Inc. (Golder) for South Heart Coal LLC (SHC) for the South Heart Lignite Mine (SHLM) in accordance with the North Dakota Public Service Commission (PSC) Surface Coal Mining and Reclamation Program, and the Laws and Rules governing surface coal mining and reclamation (Chapters 38-14 and 38-18 of the North Dakota Century Code (NDCC) and Article 69-05 of the North Dakota Administrative Code (NDAC)). The proposed Permit Boundary for the mine is shown on Figure 1.0-1. The SHLM is being developed by SHC to produce coal for market. The mine plan described in this application has been designed specifically to provide coal to a planned commercial-scale gasification plant that would be located adjacent to the mine. 2014 is currently planned as the year that initial mine development and mining will commence. Ongoing engineering evaluations of the planned commercial-scale gasification plant indicate that a mine production rate of 2.4 million tons of coal per year will be required to fully support the plant. Where there are specific revisions to tonnages, the schedule for mining and reclamation, or any other changes specific to coal delivery that require permit revision, operations revisions to address the changes will be submitted to the PSC for approval. 1.1 1.1.1 Introductory Information Application Form

Appendix 1.1-1 presents the SHLM permit application form SFN 10522. 1.1.2 Approval Forms

SHC is in the process of obtaining other permits and licenses applicable to the proposed operations and required by Stark County and Federal and State government agencies. A list of all other known permits and licenses that may be required for the SHLM, including type of permit or license and name and address of issuing authority, is presented in Table 1.5-1.

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Legal Description of Permit Area (NDCC 38-14.1-14(1)(a))

Appendix 1.2-1 presents a legal description of the SHLM Permit Area in metes and bounds. The legal description was prepared based on a survey of the Permit Area performed by Interstate Engineering Inc. in July 2008 and updated in November 2009. The survey was carried out using a North Dakota (ND) State Plane Coordinate System, North American Datum of 1927 (NAD27). Based on this survey, the SHLM Permit Area was calculated to be 4,581.4 acres. That value was used to estimate the filing fee required for this mine permit application and described in Appendix 1.1-1. 1.2.2 Permit Area Map (NDCC 38-14.1-14(j))

Figure 1.0-1 presents a Permit Area map. 1.2.3 Proof of Filing Fee (NDCC 38-14.1-13(b))

A copy of the application fee check filed with the PSC Reclamation Division is provided in Appendix 1.2-2. 1.2.4 Newspaper Publication Notice (NDCC 38-14.1-18(1))

Appendix 1.2-3 presents the newspaper notification that will be published in the Dickinson Press upon notification that this mine permit application is deemed complete by the PSC. The notification contains the proposed mine location, a list of surface and coal property owners within the permit boundary, the address of the commission to submit written inquiries to, and information pertaining to the public roads that may be impacted by the project. Figure 1.2-1 presents a map that will be included in the newspaper notification. This map shows the location and boundaries of the Permit Area. 1.2.5 Certificate of Liability Insurance (NDCC 38-14.1-14(3))

A certificate issued by an insurance company authorized to do business in the State of North Dakota certifying that the applicant has a public liability insurance policy in force for the surface coal mining

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and reclamation operations for which this permit is sought is included in Appendix 1.2-4. The policy provides for personal injury and property damage protection in the amounts required by NDAC 6905.2-12-20. 1.2.6 Filing with County Auditor (NDCC 38-14.1-13(2))

Upon notification by the PSC that the SHLM permit application is administratively complete, a copy of the permit application will be filed at the Office of the County Auditor, in the Stark County Courthouse, located at 51 3rd Street E, in Dickinson, North Dakota. 1.3 1.3.1 Business Information, Identification of Interests and Right of Entry Applicant Information

The name, address, telephone number, and employer identification number of the applicant, applicant's resident agent, and person who will pay the abandoned mine land reclamation fee are described below according to NDAC 69-05.2-06-01(1)(d) and NDCC 38.14.1-14(1)(c). • Address of Applicant: South Heart Coal LLC (SHC) 601 Jefferson Street, Suite 3600 Houston, TX 77002 (713) 751-7516 • Applicant’s Resident Agent: Capital Services Inc. (Delaware and N. Dakota) 800 Brazos, Suite 400 Austin, TX 78701 (800) 345-4647 • Employer I.D. No: 35-2164875

Payment of the Abandoned Mine Reclamation Fee (NDAC 69-05.2-06-01(d)) All Abandoned Mine Reclamation fees will be paid by SHC.

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Mine Information (69-05.2-06-01(1)(b)) Mine Name: South Heart Lignite Mine

The Mine Safety and Health Administration (MSHA) identification number for the SHLM will be obtained before any operations begin. 1.3.3 Name of Officers, Directors, and Share Holders, and Organizational Structure of SHC (NDCC 38-14.1-14(1)(c)(e) and NDAC 69-05.2-06-01(1).

Figure 1.3-1 presents the organizational structure of SHC and its wholly-owned affiliates and shareholders, including their ownership or control relationship to SHC and their percentage of ownership and location in the organizational structure. In addition, Table 1.3-1 presents employer identification number and registered agent of the entities presented in Figure 1.3-1, and the names and addresses of their directors and officers. Table 1.3-1 also presents the name and address of persons owning a record of 10 percent or more of any class of voting stock or membership interests of the applicant. 1.3.4 Name of other Mines Owned or Controlled Either by the Applicant or any Person Who Owns and Controls the Applicant (NDCC 38-14.1-14(1)(e) and NDAC 69-05.2-0601(1)(f))

Neither SHC, as the permit applicant, nor any other person who owns and/or controls SHC has operated any surface coal mining operation within the preceding five years. 1.3.5 Permit Area Surface and Coal Interest

Appendix 1.3-1, Appendix 1.3-2, Figure 1.3-2 and Figure 1.3-3 present a tract summary and tract-bytract delineation, respectively, of all surface and coal interest, easements and leasehold interests, other than coal, of record contained within the Permit Boundary. This section contains the information required under NDCC 38-14-1.14(1)(b), NDCC 38-14-1.14(1)(k), NDCC 38-14-06, NDCC 38-14.118(2), NDAC 69-05.2-06-03, and NDAC 69-05.2-08-02(1). Each tract description includes legal description of the tract; name and address of the owner of record of surface and coal subsurface rights; percentage of ownership; right of entry documents; easement of

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records; and description of leasehold interest other than coal. The right of entry agreements include signature pages for the different property owners. The signed pages have been properly notarized by a Notary Public. Please note that some of the notary stamps cannot be seen on the scanned file because a crimp was used. The original documents are on file in the SHC offices. The Tract Summaries (Appendix 1.3-1- Surface Tract Summary and Appendix 1.3-2 – Coal Tract Summary) include a list of title reports, parcel legal descriptions and owners of record for surface or coal tracts. Signed agreements and the page number in the agreement where the owner’s signature page can be found are identified on each appendix table. The percentage of signatures received for each parcel and for the Permit Area has been calculated and is based on the number of owners for each tract and a Permit Area of 4,581.4 acres. In addition, a link has been provided in each appendix table for the title reports and the signed agreements. In summary, SHC has lease agreements signed for 100 percent of the surface area within the Permit Boundary and the right to mine 81.6 percent of the total coal within the Permit Boundary. This exceeds the 75 percent that is required in NDCC 38-18-05. For example, in Appendix 1.3-2, Coal Tract Title ID C-1399822-B has 18 owners and represents 312.2 acres out of the total 4,581.4 acres in the Permit Area. Two of the 18 owners did not sign lease agreements (Robert Jr. Erdahl and Karla H. Erdahl) and together those two owners hold 4 percent ownership in the property. Thus, 96 percent of the parcel has signed lease agreements which represents 6.5 percent of the Permit Area with signed agreements. Appendix 1.3-3 - Surface and Coal Lease Agreements presents a list of the separate lease agreements that pertain to the property within the Permit Boundary and within ¼ mile of it. These are the same leases that are accessed through the separate parcel descriptions in Appendix 1.3-1 and Appendix 1.3-2. Title records, right of entry documents, easements of record and leasehold interests other than coal that have been presented in this section were obtained by a title search performed by Contex Energy Company in the Office of the Stark County Recorder. The following efforts were also made to gather contact information for property owners, business entities and/or principals, officers and resident agents presented in Appendix 1.3-1 and Appendix 1.3-2: •

A compilation of available parcel owner contact information was performed using data from the title search conducted by Contex Energy Company;

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A business records search was performed using the North Dakota Secretary of State department’s website; If a business address was given and it was outside North Dakota State then the given State’s Secretary of State department website was searched; and When an address or P.O Box was provided in the title report, a reverse address search was performed using the Dex White Pages website to determine if there was any information about the current users of the P.O. Box or address listed for the company.

•

Figure 1.3-2 and Figure 1.3-3 show the tracts within the Permit Area, and surface and coal ownership information per each tract. 1.3.6 Adjacent Surface and Coal Interest (NDCC 38-14.1-14(d), NDAC 69-05.2-06-01 (1)(a)(c), and NDAC 69-05.2-08-02(1))

Appendix 1.3-1 and Appendix 1.3-2 present information for all adjacent surface and coal interests, respectively, in lands contiguous to the proposed Permit Area and within one-fourth mile of the Permit Boundary. Those appendices include legal descriptions of the tract area, names and addresses of the owners of record of adjacent surface and coal subsurface rights, percentages of ownership, rights of entry documents or consent documents, and easements of record. Title records, right of entry documents, easements of record and leasehold interests other than coal that have been presented in this section were obtained by a title search performed by Contex Energy Company in the Office of the Stark County Recorder. Contact information for property owners, business entities and/or principals, officers and resident agents reflected in Appendix 1.3-1 and Appendix 1.3-2 was obtained via the efforts described in Section 1.3.5. Figure 1.3-2 and Figure 1.3-3 show the location of each tract within one-fourth mile of the Permit Boundary. 1.3.7 Certificate of Authenticity (NDAC 69-05.2-06-03)

A certificate of authenticity stating that the copies of the instruments submitted in this application (in Sections 1.3.5 and 1.3.6) are true and correct duplications of the original instruments that are on

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file in the Houston Office of SHC located at 601 Jefferson Street, Suite 3600, Houston, TX 77002, is included in Appendix 1.3-4. 1.4 1.4.1 Surface Owner Protection Act Compliance Information (NDCC 38-18-06(1)) Surface Owner Consent

Certified copies of the leases which constitute surface owner consent are provided in Section 1.3.5. 1.4.2 Surface Owner Notification Letters

Appendix 1.4-1 presents copies of the surface owner notification letters sent to surface owners on February 26, 2010. Letters contain the plan of work and operations for the SHLM and are

accompanied by an enlarged United States geological survey topographic map showing the specific locations to be covered by the mining operation (Figure 1.4-1). Appendix 1.4-1 also contains the post-mining preference statements and the surface owner notification letters that were sent with them on August 29, 2008. 1.5 1.5.1 Other Compliance Information Current and Previous Permits and Permit Applications, including Pending Applications (NDAC 69-05.2-06-02(1) and NDCC 38-14.1-14(1)(f))

Neither SHC, any subsidiary, nor persons controlled by or under common control with the permit applicant has held any Federal or State mining permit during the five-year period prior to the date of submission of this application. 1.5.2 Permit Suspensions or Revocations and Bond Forfeitures (NDCC 38-14.1-14(1)(h) and NDAC 69-05.2-06-02(2))

Neither SHC, any subsidiary, nor persons controlled by or under common control with the permit applicant has held any Federal or State mining permit which in the five-year period prior to the date of submission of this application has been suspended or revoked, or had a mining bond or similar security forfeited.

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Violation Identification (NDCC 38.14.1-14(1)(g) and NDAC 69-05.2-06-02(3)(4)(5))

Neither SHC, any subsidiary, nor persons controlled by or under common control with the permit applicant has been in violation of Chapter 3.14-1, the Surface Mining Control and Reclamation Act of 1977, or any law, rule or regulation of the United States or of the State of North Dakota, or of any department or agency in the United States or of the State of North Dakota pertaining to air or water environmental protection, during the three-year period prior to the date of submission of this application. 1.5.4 Other Licenses and Permits

In addition to the requirements of the PSC Reclamation Division, SHC will comply with all other Federal, State and local laws and regulations pertaining to the construction and operation of the mine that is the subject of this application. Table 1.5-1 presents a current list of the permits, approvals and authorizations required for the initial construction and operation of the SHLM, and includes those which prescribe the closure requirements applicable to the SHLM. The current status of each of these permits is also presented in Table 1.5-1. 1.5.5 Relationship to Areas Designated Unsuitable (NDCC 38-14.1-05, NDCC 38-14.1-07, NDCC 38-14.1-21(3)(d) and NDAC 69-05.2-04)

The surface coal mining operations proposed for this Permit Area are not: •

Within an area designated as unsuitable for all or certain types of surface coal mining operations or under study for such designation in an administrative proceeding; On any lands within the boundaries of units of the North Dakota State Park System, the National Park System, the National Wildlife Refuge Systems, the National System of Trails, the National Wilderness Preservation System, the National Wild and Scenic Rivers System, or National Recreation Areas designated by Act of the U.S. Congress; On any federal lands within boundaries of any National Forest; Within 300 feet of any publicly owned park or places included in the State Historic Sites Registry or the National Register of Historic Sites;

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Within 300 feet of any public building, school, church, community or institutional building, or within 100 feet of a cemetery;

Several existing structures including residential homes, farm buildings, farm structures, storage containers and barns exist within the proposed Permit Boundary and will, if necessary, be removed prior to any mining activities. A removal plan for the structures described below is included in Section 3.2. Location of these structures are presented in Figure 3.2-1a. •

Farmstead 1: NW1/4 of Section 21 and SW1/4 of Section 16, T139N and R98W. The occupied dwelling and farm buildings will, if necessary, be removed prior to mining that area. Farmstead 2: NE1/4 of Section 22 and SE1/4 of Section 15, T139N and R98W. The occupied dwelling and farm buildings will, if necessary, be removed prior to mining that area. Farmstead 3: NW1/4 of Section 23, T139N and R98W. The occupied dwelling and farm buildings will, if necessary, be removed prior to mining that area. Farmstead 4: SE1/4 of Section 22, T139N and R98W. The occupied dwelling and farm buildings will, if necessary, be removed. Farmstead 5: Between SW1/4 and NW1/4 of Section 27, T139N and R98W. The occupied dwelling and farm buildings will, if necessary, be removed prior to mining that area.

•

• • •

Signed coal lease and surface use agreements between the owners of the dwellings and farm buildings, and SHC, which grant SHC the right to demolish or remove the existing dwellings, farm buildings and related structures within the Permit Boundary and constitute surface owner consent to SHC, are provided in Appendix 1.3-1. Section 3.5 and Figure 3.5-11a and Figure 3.5-11b present a plan for the county and section line roads that will be temporarily closed, removed and ultimately replaced over the life of the mine. Once mining is complete and reclamation has begun, all of the section line rights-of-way and county roads affected during mining activities will be reclaimed to a condition equal to or better than their pre-mining conditions. Unless otherwise noted, all sections are within Township 139 North, Range 98 West. Operations within 100 feet of the outside rights-of-way of the following section lines will be necessary during the planned mining of this permit area.

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Sections 14 and 15 Sections 22 and 23

During the term of the permit, mining and related construction activities will need to be located across several section lines. SHC proposes close some or all of the following section line rights-of-way during the term of mining and reclamation. The east-west section lines between: • • • • • • • • • • •

Sections 9 and 16 Sections 10 and 15 Sections 14 and 23 Sections 15 and 22 Sections 16 and 21 Sections 17 and 20 Sections 21 and 28 Sections 22 and 27 Sections 27 and 34 The eastern ¾ of Sections 28 and 33 The eastern ¼ of Sections 20 and 29

The north-south section lines between: • • • • • •

Sections 9 and 10 Sections 16 and 17 Sections 15 and 16 Sections 21 and 22 Sections 20 and 21 Sections 27 and 28

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The northern ¼ of Sections 28 and 29

Due to the section line right-of-way closures and the associated road closures, SHC proposes to construct three new road segments along the following section line rights-of-way. The closures will not take place until after the new road segments are in place. The east-west section lines between: • •

Section 33 and Section 4 of Township 138 North, Range 98 West Section 34 and Section 3 of Township 138 North, Range 98 West

The north-south section line between: •

Sections 32 and 33

SHC proposes to construct an overpass on 122nd Avenue in order to allow a planned mine haul road to pass under 122nd Avenue. The overpass will run north to south along 122nd Avenue near the south half of the section line between Sections 22 and 23. All changes to the public rights-of-way, final road designs and construction will be subject to approval of the Stark County Board of Commissioners. SHC will comply with all Stark County road construction guidelines. Mine layout and related construction activities will be conducted within 100 feet of the Right-of-Way of several public county and section line roads. Section 3.5 and Figure 3.5-11a, Figure 3.5-11b, and Figure 3.5-11c present a relocation plan for the county and section line roads that will be temporarily closed, removed and ultimately replaced over the life of the mine. SHC will obtain approval from the Stark County Board of Commissioners before making any changes to the public rights of way. All final road designs and construction will be subject to approval from the Stark County Board of Commissioners and will comply with all county road construction guidelines. The following county and section line roads will be affected during certain periods of the mine life: In Section 16 and 15 of Township 139 North, Range 98 West there is one unpaved road that will be closed during mining and is listed below:

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In Section 22 of Township 139 North, Range 98 West there is one unpaved road that will be closed during mining and is listed below: •

North-south road located along the west section line.

In Section 20 of Township 139 North, Range 98 West there is one unpaved road that will be closed during mining and is listed below: •

East-west road located along the north section line; and

In Section 27 of Township 139 North, Range 98 West there are three unpaved roads that will be closed during mining and are listed below: • • •

East-west road located along portions of the north section line; North-South road located along the southern portion of the west section line; North-South road located along the northern portion of the west section line.

In Section 33 of Township 139 North, Range 98 West there are two unpaved roads that will be closed during mining and are listed below: • •

East-west road located along the north section line; North-South road located along the east section line.

These roads will be closed and relocated as shown on Figure 3.5-11b and Figure 3.5-11c. SHC will construct a temporary road connecting the northern section line road in Section 33 with a temporary road that runs along the south section line in Section 33. Figure 3.5-11c shows the proposed new road location that SHC has designed. Upon approval of the road closings and the new road location by the Stark County Board of County Commissioners, approximately 10,500 ft of new road will be constructed in Section 33 as shown on Figure 3.5-11c.

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An overpass will be constructed on 122nd Avenue prior to 2038. The overpass will run north to south along 122nd Avenue in the SW1/4 of Section 23 and SE1/4 of Section 22 of Township 139 North, Range 98 West as shown on Figure 3.5-11c. post-mining. The existing unpaved section line road (41st Street SW) running east to west along the north section line of Sections 33 and 34 of Township 139 North, Range 98 West will be closed as shown on Figure 3.5-11b. The section line public right-of-way (ROW) that runs north to south along the west section line of Section 34 of Township 139 North, Range 98 West will also be closed. Prior to the closure of these existing section line roads and public ROW, new section line roads will be constructed that run east to west along the south section lines of Sections 33 and 34 of Township 139 North, Range 98 West and then north-south along the west section line ROW of Section 33 to intersect with existing 41st Street at the northwest corner of Section 33. Figure 3.5-11b shows the preliminary proposed road relocations that SHC has designed that will have minimal or no travel affects on residents who use these roads. Once the Stark County Board of County Commissioners has approved the SHC-proposed road relocations and re-alignments, the 10,600 ft of the new section line road that will run east to west along the southern section line of Section 33 and 34 of Township 139 North, Range 98 West will be built. Also, approximately 5,300 feet of road will be constructed along the west boundary of section 33 to tie the newly constructed portion of 42nd Street to existing 41st Street. Prior to the beginning of mine construction, the following roads will be closed throughout the entire mine life: • The overpass will stay in place and not be removed

The unpaved section line ROW along the western boundary of Section 21 of Township 139 North, Range 98 West; The eastern 1/3 of the unpaved road lying along the northern section line road in Section 27 of Township 139 North, Range 98 West; The northern and eastern unpaved section line road in Section 33 of Township 139 North, Range 98 West; The southern 1/2 of the unpaved road lying along the western section line road in Section 27 of Township 139 North, Range 98 West; and All other unpaved roads in Section 27 of Township 139 North, Range 98 West.

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Once mining is complete within the Permit Area and reclamation has begun, all the section line and county roads affected during the mining activities will be reclaimed to a condition equal to or better than their pre-mining conditions or as stipulated with the Stark county Commissioners. 1.5.6 Entities and/or Persons Who Prepared or Who Consulted in Preparing This Application (NDAC 69-05.2-05-02(3))

Many entities and/or persons participated in the preparation of this application. Contact information for the companies, principal report authors and investigators involved in the preparation of each chapter is presented in Appendix 1.5-1.

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TABLES

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FIGURES

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APPENDICES

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APPENDIX 1.1-1 SOUTH HEART LIGNITE MINE PERMIT APPLICATION FORM (SFN 10522)

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APPENDIX 1.2-1 METES AND BOUNDS LEGAL DESCRIPTION OF PERMIT AREA

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APPENDIX 1.2-2 PROOF OF FILING FEE

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APPENDIX 1.2-3 NOTICE OF FILING FOR A PERMIT TO CONDUCT SURFACE COAL MINING OPERATIONS

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APPENDIX 1.2-4 CERTIFICATE OF LIABILITY INSURANCE

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APPENDIX 1.3-1 SURFACE OWNERSHIP

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APPENDIX 1.3-2 COAL OWNERSHIP

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APPENDIX 1.3-3 SURFACE AND COAL LEASE AGREEMENTS

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APPENDIX 1.3-4 CERTIFICATE OF AUTHENTICITY

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APPENDIX 1.4-1 SURFACE OWNER NOTIFICATION LETTERS

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APPENDIX 1.5-1 CONTACT LIST

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TABLE 1.3-1A OWNERSHIP AND CONTROL INFORMATION - GREAT NORTHERN PROJECT DEVELOPMENT, L.P. Great Northern Project Development, L.P. 601 Jefferson, Suite 3600 Houston, TX 77002 76-0695334 See Figure 1.3-1 Organizational Structure None Capital Services Inc. 615 South Dupont Highway Kent County Dover, DE 19901 Address Title Date Assumed Position Date Departed Position

Company: Employer I.D.: Relationship to Applicant: Current or Pending Surface Coal Mining Permits: Registered Agent:

Director and Officer Names

Great Northern Project Development, L.P. has no directors or officers The following shareholders own 10 percent or more of membership interests in this entity Name Address Percent Owned 601 Jefferson, Suite 3600 69 Limited Partner Interest Corbin J. Robertson, Jr. Houston, TX 77002 601 Jefferson, Suite 3600 Corbin J. Robertson, III 10 Limited Partner Interest Houston, TX 77002 601 Jefferson, Suite 3600 Frances C. Morentz 10 Limited Partner Interest Houston, TX 77002 601 Jefferson, Suite 3600 William Keen Robertson 10 Limited Partner Interest Houston, TX 77002 601 Jefferson, Suite 3600 1 General Partner Interest GNPD Inc. Houston, TX 77002

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TABLE 1.3-1B OWNERSHIP AND CONTROL INFORMATION - GNPD INC. GNPD Inc. 601 Jefferson, Suite 3600 Houston, TX 77002 76-0695333 See Figure 1.3-1 Organizational Structure None Capital Services Inc. 615 South Dupont Highway Kent County Dover, DE 19901 Address 601 Jefferson, Suite 3600 Houston, TX 77002 601 Jefferson, Suite 3600 Houston, TX 77002 601 Jefferson, Suite 3600 Houston, TX 77002 601 Jefferson, Suite 3600 Houston, TX 77002 601 Jefferson, Suite 3600 Houston, TX 77002 1022 East Divide Ave., Ste E Bismarck, ND 58501 173 Cottonwood Road Townsend, MT 59644 601 Jefferson, Suite 3600 Houston, TX 77002 601 Jefferson, Suite 3600 Houston, TX 77002 Address Title Chairman of the Board President Chief Executive Officer General Counsel Secretary Vice President Vice President Chief Financial Officer Treasurer Title Date Assumed Position 11/18/2008 11/18/2008 11/18/2008 8/19/2003 8/19/2003 11/18/2008 11/18/2008 10/18/2004 10/18/2004 Date Assumed Position 10/24/2002 10/4/2001 10/24/2002 11/18/2008 11/18/2008 Date Departed Position Present Present Present Present Present Present Present Present Present Date Departed Position Present Present Present Present Present

Company: Employer I.D.: Relationship to Applicant: Current or Pending Surface Coal Mining Permits: Registered Agent:

Officer Name Charles H. Kerr Todd Joyner Todd Joyner Wyatt L. Hogan Wyatt L. Hogan Richard A. Voss Richard A. Southwick Paul Cornell Paul Cornell Director Name Charles H. Kerr

601 Jefferson, Suite 3600 Director Houston, TX 77002 601 Jefferson, Suite 3600 Corbin J. Robertson, Jr. Director Houston, TX 77002 601 Jefferson, Suite 3600 Corbin J. Robertson, III Director Houston, TX 77002 601 Jefferson, Suite 3600 Director William Waycaster Houston, TX 77002 601 Jefferson, Suite 3600 Director Cedric Burgher Houston, TX 77002 The following shareholders own 10 percent or more of membership interests in this entity Name Address Percent Owned 601 Jefferson, Suite 3600 Corbin J. Robertson, Jr. 100 Interest Houston, TX 77002
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TABLE 1.3-1C OWNERSHIP AND CONTROL INFORMATION - SOUTH HEART DEVELOPMENT LLC South Heart Development LLC 601 Jefferson, Suite 3600 Houston, TX 77002 20-3044176 See Figure 1.3-1 Organizational Structure None Capital Services Inc. 615 South Dupont Highway Kent County Dover, DE 19901 Address 601 Jefferson, Suite 3600 Houston, TX 77002 601 Jefferson, Suite 3600 Houston, TX 77002 601 Jefferson, Suite 3600 Houston, TX 77002 601 Jefferson, Suite 3600 Houston, TX 77002 1022 East Divide Ave., Ste E Bismarck, ND 58501 173 Cottonwood Road Townsend, MT 59644 Address Manager Manager Manager President Chief Executive Officer General Counsel Secretary Vice President Vice President Title Title Date Assumed Position 11/18/2008 11/18/2008 10/2/2003 10/2/2003 11/18/2008 11/18/2008 Date Assumed Position 10/2/2008 10/18/2004 10/18/2004 Date Departed Position Present Present Present Present Present Present Date Departed Position Present Present Present

Company: Employer I.D.: Relationship to Applicant: Current or Pending Surface Coal Mining Permits: Registered Agent:

Officer Name Todd Joyner Todd Joyner Wyatt L. Hogan Wyatt L. Hogan Richard A. Voss Richard A. Southwick Manager Name Charles H. Kerr

601 Jefferson, Suite 3600 Houston, TX 77002 601 Jefferson, Suite 3600 Bert Campbell Houston, TX 77002 601 Jefferson, Suite 3600 Wyatt L. Hogan Houston, TX 77002 South Heart Development LLC has no directors

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TABLE 1.3-1D OWNERSHIP AND CONTROL INFORMATION - ALLIED RESOURCE CORPORATION Allied Resource Corporation 435 Devon Park Drive, 200 Building Wayne, PA 19087 23-2756567 See Figure 1.3-1 Organizational Structure None None Date Assumed Position 4/27/1994 12/11/2008 12/11/2008 3/9/2001 10/13/2005 Date Assumed Position 4/27/1994 6/4/2008 3/19/1997 4/29/1996 6/4/2008 4/27/1994 Date Departed Position Present Present Present Present Present Date Departed Position Present Present Present Present Present Present

Company: Employer I.D.: Relationship to Applicant: Current or Pending Surface Coal Mining Permits: Registered Agent:

Officer Name Heinz Schimmelbusch Juergen Kremer Todd White Todd White Lynda Guinan Director Name Heinz Schimmelbusch

Title

Managing Director Managing Director Secretary Vice President-Finance Title

435 Devon Park Drive, 200 Building Chairman Wayne, PA 19087-1945 435 Devon Park Drive, 200 Building John Coughlin Director Wayne, PA 19087-1945 435 Devon Park Drive, 200 Building William Drake Director Wayne, PA 19087-1945 435 Devon Park Drive, 200 Building Geoffrey Hoguet Director Wayne, PA 19087-1945 435 Devon Park Drive, 200 Building Timothy Kelleher Director Wayne, PA 19087-1945 435 Devon Park Drive, 200 Building Director Nils Kindwall Wayne, PA 19087-1945 The following shareholders own 10 percent or more of membership interests in this entity Name Address Percent Owned 435 Devon Park Drive, 200 Building PCG Corporate Partners Fund II, L.P. 29.8 Wayne, PA 19087-1945 435 Devon Park Drive, 200 Building 11.8 Heinz Schimmelbusch Wayne, PA 19087-1945

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TABLE 1.3-1E OWNERSHIP AND CONTROL INFORMATION - ALLIED SYNGAS CORPORATION Allied Syngas Corporation 435 Devon Park Drive, 200 Building Wayne, PA 19087 20-1767809 See Figure 1.3-1 Organizational Structure None None Date Assumed Position 4/6/2005 4/6/2005 4/6/2005 4/6/2005 4/6/2005 4/6/2005 4/6/2005 4/6/2005 Title Director Director Director Date Assumed Position 4/6/2005 4/6/2005 4/6/2005 Date Departed Position Present Present Present Present Present Present Present Present Date Departed Position Present Present Present

Company: Employer I.D.: Relationship to Applicant: Current or Pending Surface Coal Mining Permits: Registered Agent:

Officer Name M. Rhem Wooten Todd White Todd White Todd White Victor Shellhorse Bill Jones Al Lukes Lynda Guinan Director Name Heinz Schimmelbusch Juergen Kremer Todd White

Address 435 Devon Park Drive, 200 Building Wayne, PA 19087-1945 435 Devon Park Drive, 200 Building Wayne, PA 19087-1945 435 Devon Park Drive, 200 Building Wayne, PA 19087-1945 435 Devon Park Drive, 200 Building Wayne, PA 19087-1945 435 Devon Park Drive, 200 Building Wayne, PA 19087-1945 435 Devon Park Drive, 200 Building Wayne, PA 19087-1945 435 Devon Park Drive, 200 Building Wayne, PA 19087-1945 435 Devon Park Drive, 200 Building Wayne, PA 19087-1945 Address 435 Devon Park Drive, 200 Building Wayne, PA 19087-1945 435 Devon Park Drive, 200 Building Wayne, PA 19087-1945 435 Devon Park Drive, 200 Building Wayne, PA 19087-1945 President

Title

Vice President Chief Financial Officer Secretary Vice President Vice President Chief Operating Officer Controller

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TABLE 1.3-1F OWNERSHIP AND CONTROL INFORMATION - SOUTH HEART COAL LLC (SHC) South Heart Coal LLC (SHC) 601 Jefferson, Suite 3600 Houston, TX 77002 713-751-7516 35-2164875 See Figure 1.3-1 Organizational Structure None Capital Services Inc. (Delaware and N. Dakota) 800 Brazos, Suite 400 Austin, TX 78701 800-345-4647 Address 601 Jefferson, Suite 3600 Houston, TX 77002 601 Jefferson, Suite 3600 Houston, TX 77002 601 Jefferson, Suite 3600 Houston, TX 77002 601 Jefferson, Suite 3600 Houston, TX 77002 435 Devon Park Drive, 200 Building Wayne, PA 19087-1945 1022 East Divide Ave., Ste E Bismarck, ND 58501 173 Cottonwood Road Townsend, MT 59644 435 Devon Park Drive, 200 Building Wayne, PA 19087-1945 Address 601 Jefferson, Suite 3600 Houston, TX 77002 435 Devon Park Drive, 200 Building Wayne, PA 19087-1945 Manager Manager President Chief Executive Officer General Counsel Secretary Executive Vice President Vice President Vice President Vice President Title Title Date Assumed Position 11/18/2008 11/18/2008 10/2/2003 10/2/2003 11/18/2008 11/18/2008 11/18/2008 10/1/2007 Date Assumed Position 10/2/2003 10/1/2007 Date Departed Position Present Present Present Present Present Present Present Present Date Departed Position Present Present

Company: Employer I.D.: Relationship to Applicant: Current or Pending Surface Coal Mining Permits: Registered Agent:

Officer Name Todd Joyner Todd Joyner Wyatt L. Hogan Wyatt L. Hogan Victor Shellhorse Richard A. Voss Richard A. Southwick Todd White Manager Name Charles H. Kerr M. Rhem Wooten South Heart Coal LLC has no directors

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TABLE 1.5-1 OTHER REQUIRED LICENSES/PERMITS APPLICABLE FOR THE SOUTH HEART LIGNITE MINE Licenses/Permits Federal Government Explosives User Permit (High Explosives) Mine Safety and Health Administration Administering Agency and Address Department of Homeland Security, Bureau of Alcohol, Tobacco, Firearms and Explosives, P.O. Box 409567 Atlanta, GA 30384-9567 Mine Safety and Health Administration U.S. Department of Labor P.O. Box 25367, DFC Denver, CO 80225 Federal Communications Commission 445 12th Street SW, Washington, DC 20554 U.S. Army Corps of Engineers 10 West 15th Street, Suite 2200 Helena, MT 59626 U.S. Army Corps of Engineers 1513 S. 12th Street Bismarck, ND 58504 Status To be obtained by contract miner

Will be applied for

Radio License Section 404 Permits Nationwide Permits or Individual Permits

To be obtained by contract miner Will be applied for

State of North Dakota Air Pollution Control Permit to Construct

North Dakota Department of Health Division of Air Quality, Gold Seal Center 918 E. Divide Avenue Bismarck, ND 58501-1947 North Dakota Geological Survey 600 East Blvd. Bismarck, North Dakota 58505 North Dakota Department of Health Division of Water Quality 918 East Divide Avenue, 4th Floor Bismarck, ND 58501-1947 North Dakota State Water Commission (SWC), 900 East Boulevard Ave., Dept. 770 Bismarck, ND 58505-0850

Will be applied for

Coal Exploration Permit

Permit STK-24-06 465 approved 8/14/2006; STK-25-07-474 approved 9/12/2007; Permit STK-26-08-482 approved 10/31/2008; Permit STK-27-09-486 approved 10/22/2009 Will be applied for

NDPDES Permit

Conditional Water Permit

Will be applied for

NPDES General Permit for North Dakota Department of Health Division of Will be applied for Storm Water Discharges Water Quality, 1200 Missouri Ave., PO Box 5520, Associated with Mining Bismarck, ND 58506-5520 Activity Application/Notification to North Dakota State Water Commission (SWC), 900 East Boulevard Ave. Construct a Dam, Dike, Ring Dike or other Water Bismarck, ND 58505-0850 Resource Facility Permit to Investigate, Excavate or Record Cultural Resources North Dakota Heritage Center 612 East Boulevard Avenue Bismarck, ND 58505-0830 Application is submitted as part of Chapter 3.6 Water Management Plan in accordance with NDAC 89-04-01-04 Permit approved January 11, 2007 by State Historical Society of North Dakota. No permit number issued.

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TABLE 1.5-1 OTHER REQUIRED LICENSES/PERMITS APPLICABLE FOR THE SOUTH HEART LIGNITE MINE Administering Agency and Address Licenses/Permits Section 401 Water Quality North Dakota Department of Health Certification Division of Water Quality 918 East Divide Avenue, 3rd Floor Bismarck, ND 58501-1947 Local Government-Stark County Construction in County County Commissioners Right of Way Permit Stark County, North Dakota County Zoning Stark County Zoning Board Stark County, North Dakota Stark County Zoning Board Stark County, North Dakota Status Will be applied for

Will be applied for Will be applied for

Conditional Use

Will be applied for

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55
2500

75
121st Avenue SW

124th Avenue SW

250 0

37th Street SW

Highway 10 W

250 0

25 00

0 250

00 25

Heart River

10
25 00

122nd Avenue SW

25 00

City of South Heart
12
0 250

2500

6th Street
38t h Str e et SW

45 18
2600

26 00

27 00

W Main Avenue W Broadway Street

4th Street

26 00

14
St re et

13
4t h

39th Street SW

26 00

West Tributary
2600

2500

39th Street SW
4

260 0

2500

35
2600

40th Street SW

2500

0 250

2500

00 25

00 26

123rd Avenue SW

41st Street SW
4

PERMIT AREA - 4,581.4 ACRES Township 139 North, Range 98 West See Appendix 1.2-1 for the metes and bounds legal description

h ut So

h nc 28 ra B

r ea

r ve Ri t

00 26

27
2600

260 0

32
00 26

ibuta ry

34
0 260

35 SHLM LOCATION

Lake Sakakawea

R98W

Sout h Tr

ss Mi

25000ft.N

T139N T138N
26 00
26 00

Beulah 94

ou ri ve Ri

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Dickinson

122nd Avenue SW

27 00

Mandan Bismarck

Lake Oahe

MONTANA

2600

0 260

2
13

NORTH DAKOTA SOUTH DAKOTA

55000ft.E

L E G E N D

Permit Boundary

R E F E R E N C E

2,000

1,000

75 0

City Of South Heart Township and Range Section Railroad

Paved Road

Unpaved Road Drainage Way Index Contour - 100 Ft Interval Contour - 20 Ft Interval

Permit Boundary: IEI: 11/12/2009. Township Range and Section: ND HUB, 6/20/2006. Roads, Railroad, Drainage Ways: Digitized from aerial photography, 6/19/2006. Contours: Generated from aerial photography stereo pairs, 6/19/2006. Projection: StatePlane, North Dakota South, NAD27, Feet.

SCALE 1:24,000 1 IN = 2,000 FT

2,000 FEET

IF PRINTED AT 17 IN X 22 IN

REV

PROJECT

DATE

DES

REVISION DESCRIPTION

GIS

CHK

RVW

SOUTH HEART COAL LLC SOUTH HEART LIGNITE MINE SOUTH HEART, NORTH DAKOTA

TITLE

PERMIT AREA
PROJECT NO. DESIGN GIS CHECK AJR AJR RLK AM 01/18/2010 03/01/2010 03/02/2010 03/02/2010 063-2212A FILE SCALE SH_CH1_PermitArea.mxd AS SHOWN REV. 0

Denver, Colorado

REVIEW

FIG 1.0-1

T140N
R98W
R99W

BELFIELD 7 MILES DICKINSON 11 MILES

121st AVE SW

126th AVE SW

Hea

rt R iver 8

HWY 10 W

CITY OF SOUTH HEART
4th ST

18
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39th ST SW

MINE PERMIT AREA
21 22

30
41st ST SW

29
e Riv a rt r

25
41st ST SW

He nch a Br uth 32 So

T139N T138N
6 5

3
PROJECT

0.5

1 Miles

R E F E R E N C E

SCALE 1:60,000 IF PRINTED AT 8.5 IN X 11 IN

SOUTH HEART COAL LLC SOUTH HEART LIGNITE MINE SOUTH HEART, NORTH DAKOTA

Permit Boundary: IEI, 11/12/2009. Township 139 North Range 98 West: ND HUB, 6/20/2006. Roads, Railroad, Drainage Ways: Digitized from aerial photography, 6/19/2006. Projection: StatePlane, North Dakota South, NAD27, Feet.

TITLE

NEWSPAPER PUBLICATION MAP
PROJECT NO. DESIGN GIS CHECK REVIEW AJR AJR RLK AM 04/28/2008 08/16/2010 08/16/2010 08/16/2010 063-2212A FILE SH_NewspaperMap_8-5x11.mxd SCALE AS SHOWN REV. 1

Denver, Colorado

FIG 1.2-1

R98W

R97W

122nd AVE SW

T139N

INTERSTATE 94

South Heart Coal LLC Corporate Structure
Figure 1.3-1

Allied Resource Corporation Table 1.3-1D

Great Northern Project Development, L.P. Tables 1.3-1A and 1.3-1B

100% Interest

Allied Syngas Corporation Table 1.3-1E

South Heart Development LLC Table 1.3-1C

South Heart Coal LLC (SHC) Table 1.3-1F

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50 7

S-1399810-A Meduna, Gary L. and Barbara S-1399808-A Zarak, William J, Jr. and Darlene L. Family Trust
4

Bur

S-1399809-F Meduna, Gary L. and Barbara

S ling -13998 0 ton Nor 9-H ther n, In c.

Bur

S-1399809-G Wagner, James and Lisa

11 S S-1399811-D ling -13998 10-D ton Wagner, Jerry and Millie Nor ther n, In S-1399811-B c. B Wagner, Jerry and Millie urli S-139 ngt 981 on N 0 S-1399810-C orth -E Pavel, Robert B. ern , Inc . Burl S-139 ingt S-1399810-A on N9811-E orth Meduna, Gary L. and Barbara S-1399811-C ern, In c. Pavel, Robert B.
S-1399811-A Obritsch, Lambert

45 18 S-1399818-A Zarak, William J, Jr. and Darlene L. Family Trust
S-1399817-B West Plains Electric Cooperative S-1399817-A Kuylen, Robert F. and Brenda K. S-1399816-A Peters, Mary Louise et al

S-1399815-A Peters, Mary Louise et al

S-1399814-B Pavel, Robert B.

S-1399814-A Perdaems, James D. and Rosella J. S-1399813-C Perdaems, James D. and Rosella J. S-1399813-A Wandler, Donald M.

S-1399816-B Kuylen, Robert F. and Brenda K. S-1399820-D Williston Basin Interstate Pipeline Co.

S-1399814-C Perdaems, James D. and Rosella J.

S-1399813-B O'Brien, Darby and Renita S-1399815-B Buckman, John F. S-1399813-E Perdaems, James D. and Rosella J.

S-1399813-D Perzinski, Eugenia S-1399813-F O'Brien, Darby and Renita

S-1399819-E Montana Dakota Utilities S-1399819-A Kudrna, Kenneth D.

S-1399820-A Kuylen, Patrick 80%; Kuylen, Katherine R. 20% S-1399820-E U.S.A. Western Power Administration S-1399822-A Perdaems, James D. and Rosella J. S-1399824-B Emmil, Leocadia Family Trust

21
S-1399820-B Kudrna, Kenneth D. S-1399821-A Kuylen, Robert F. and Brenda K.

S-1399822-C Perdaems, Jerry F. and Sandra M.

24
S-1399824-D Kudrna, Randall

S-1399822-B Perdaems, Jerry F. and Sandra M.

S-1399828-A Kuylen, Patrick 71%; Kuylen, Katherine R. 29%

29
S-1399829-A Wagner, Glen R.

27
S-1399827-A Kuylen, Patrick 80%; Kuylen, Katherine R. 20%

S-1399826-B Wagner Farms LP

S-1399828-B Kuylen, Patrick and Katherine

30
S-1399833-A Klein, Larry R.

S-1399835-D Garrison, Mark and Sheila S-1399834-A Emmil, Leocadia Family Trust S-1399835-B Wagner Farms LP

31
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25000ft.N

R98W

T139N T138N 25

55000ft.E

L E G E N D

Permit Boundary - 1/4 Mile Buffer Permit Boundary Section Township and Range

R E F E R E N C E

2,000

1,000

75 0

Ownership Data: Contex Energy Company, 12/23/2009-2/3/2010. Permit Boundary: IEI, 11/12/2009. Township, Range and Section: Township 139 North Range 98 West, ND HUB, 6/20/2006. Projection: StatePlane, North Dakota South, NAD27, Feet.

SCALE 1:24,000 1 IN = 2,000 FT

2,000 FEET

IF PRINTED AT 17 IN X 22 IN

REV

05/25/2010 DATE

DES

AJR

REVISION DESCRIPTION

Completeness Comment

AJR GIS

CHK

RVW

RLK

PROJECT

SOUTH HEART COAL LLC SOUTH HEART LIGNITE MINE SOUTH HEART, NORTH DAKOTA

TITLE

SURFACE OWNERSHIP

DRAFT

PROJECT NO. DESIGN GIS CHECK REVIEW AJR AJR RLK AM

063-2212A 04/28/2008 05/25/2010 05/25/2010 05/25/2010

FILE SCALE

SH_SurfaceOwner.mxd AS SHOWN REV. 1

Denver, Colorado

FIG 1.3-2

C-1399808-A

50 7 8
C-1399808-C

C-1399808-A

9
C-1399809-F

C -1 399

809 -H

C-1399810-C C -1 399 810 -D C-1399810-C

10
C-1399810-F C-1399811-D

11
C -1 399
C-1399811-B

C-1399809-G

810 -E

C-1399810-F

C -1 399

C-1399811-A

C-1399811-C

811 -E

45
C-1399818-A C-1399817-A C-1399816-A C-1399815-A

C-1399814-B

14
C-1399814-A C-1399813-A C-1399814-C C-1399815-B C-1399813-B C-1399813-E C-1399813-C

C-1399816-B

C-1399813-D

40
C-1399819-A

C-1399820-A C-1399822-A C-1399824-B

C-1399821-A

C-1399822-C

C-1399820-B

C-1399822-B

C-1399824-D

35
C-1399828-B

C-1399828-A

C-1399826-B

C-1399829-A

27
C-1399827-A C-1399828-D

30
C-1399833-A C-1399834-C

C-1399834-A

C-1399835-B

Map Document: M:\GNPD\SouthHeart\ArcMap\Permit\CH1\SH_CoalOwner.mxd / Modified 5/25/2010 11:43:16 AM / Plotted 5/25/2010 11:43:16 AM by AReither

25000ft.N

R98W

T139N T138N 25

6 55000ft.E

5
13 13

4 60 65

3
13

2 70 2,000 1,000 75 0

1 2,000 FEET

L E G E N D

Permit Boundary - 1/4 Mile Buffer Permit Boundary Mine Pit Boundary Section

R E F E R E N C E

Township and Range

See Appendix 1.3-2 for coal owner information. Ownership Data: Contex Energy Company, 12/23/2009-2/3/2010. Permit Boundary: IEI, 11/12/2009. Mine Pits: Norwest, 1/20/2010. Township, Range and Section: Township 139 North Range 98 West, ND HUB, 6/20/2006. Projection: StatePlane, North Dakota South, NAD27, Feet.

SCALE 1:24,000 1 IN = 2,000 FT

IF PRINTED AT 17 IN X 22 IN

REV

05/25/2010 DATE

DES

AJR

REVISION DESCRIPTION

Completeness Comment

AJR GIS

CHK

RVW

RLK

PROJECT

SOUTH HEART COAL LLC SOUTH HEART LIGNITE MINE SOUTH HEART, NORTH DAKOTA

TITLE

COAL OWNERSHIP

DRAFT

PROJECT NO. DESIGN GIS CHECK REVIEW AJR AJR RLK AM

063-2212A 04/28/2008 05/25/2010 05/25/2010 05/25/2010

FILE SCALE

SH_CoalOwner.mxd AS SHOWN REV. 1

Denver, Colorado

FIG 1.3-3

M I N N E S O TA

MON TA N A

6
Williston Minot

4
37th Street SW

3
Highway 10 W

124th Avenue SW

122nd Avenue SW

SOUTH HEART LIGNITE MINE

Grand Forks

50
Dickinson

121st Avenue SW

Mandan

Bismarck

Moorhead Jamestown

Fargo

8
29

Heart River
9 10

N O R T H D A K O TA SOU T H D A K OTA

125th Avenue SW

6th Street
2027 2026

38t h

Str

eet

W Main Avenue W Broadway Street

4th Street

2025

14
re et

13
St 4t h
39th Street SW
4

2024

2043

2042

2038

39th Street SW

2037

2023

2036

2035

2034

2033

2032

2031

2030

2029

2028

2041

22
2040

2042

2027

2022 2021

Overpass/Underpass

40th Street SW
Bridge

30
Map Document: M:\GNPD\SouthHeart\ArcMap\Permit\CH1\SH_OwnerNotification2.mxd / Modified 3/1/2010 8:51:10 PM / Plotted 3/1/2010 8:51:11 PM by AReither

123rd Avenue SW

h ut

2038

a Br

h nc

r ive R

27
2040

R E F E R E N C E

41st Street SW
4

2039

L E G E N D
Mine Permit Boundary Site Access Road Haul Road Ditch Pit Access Road Culvert Bridge Pond 2014 Year-by-Year Mine Pit Progression Mine Pit

Mine Permit Boundary: IEI, 11/12/2009. Mine Features: Norwest, 2/10/2010. PLSS: Township 139 North Range 98 West, ND HUB, 6/20/2006. Roads, Railroad, Drainage Ways: Digitized from aerial photography, 6/19/2006. 4 30 Contours: Generated from aerial photography stereo pairs, 6/19/2006. Hillshade: National Geographic TOPO!, 2005. Projection: StatePlane, North Dakota South, NAD27, Feet. Inset: ESRI Base Data, 2009. 1,500 750 0

DRAFT
1,500 FEET

32 Other Disturbance Area
Section Road Railroad Drainage Way

35
PROJECT

SCALE 1:18,000 1 IN = 1,500 FT

IF PRINTED AT 2236 X 22 IN IN
SOUTH HEART COAL LLC SOUTH HEART LIGNITE MINE SOUTH HEART, NORTH DAKOTA

Stockpile
25000ft.N

Index Contour - 100 Foot Interval Contour - 20 Foot Interval
TITLE

Mine Facilities

Explosive Storage

LANDOWNER NOTIFICATION MAP
PROJECT NO.

25
AS SHOWN OwnerNotification.mxd REV. 0

000ft.

75
Denver, Colorado

DESIGN GIS CHECK

AJR AM

AJR

04/28/2008 1 02/17/2010 02/17/2010

063-2212A

FILE

02/17/2010

SCALE

REVIEW

RLK

FIG 1.4-1

APPLICATION FOR PERMIT TO ENGAGE IN SURFACE COAL MINING AND RECLAMATION OPERATIONS
PUBLIC SERVICE COMMISSION RECLAMATION DIVISION
SFN 10552 (1-2004) Name of Company, Corporation, Partnership, or Individual Date

March 29, 2010

South Heart Coal LLC

Permit Number City State

SHSH-1001
Zip Code

Address

601 Jefferson Street, Suite 3600

Houston

77002

The above named hereby makes application for the above listed permit number to engage in surface coal mining and July 2011 ___________ (date) to reclamation operations in the State of North Dakota during the period from _________ July 2016 _________ __________ (date) on the following area (attach a copy of metes and bounds description):
NAME OF MINE ACRES LOCATION SEC. TWP. RANGE COUNTY

South Heart Lignite Mine
ADDRESS

4,581.4

See Attached Description

Stark

1022 East Divide Avenue, Suite E
Bismarck, ND 58501

TOTAL ACRES

4,581.4

A bond, or its equivalent, duly executed in accordance with Section 38-14.1-16 of the North Dakota Century Code and Chapter 69-05.2-12 of the North Dakota Administrative Code will be delivered to the Public Service Commission prior to issuance of the surface coal mining and reclamation operations permit herein requested. A check for filing fees, pursuant to Section 38-14.1-13 of the North Dakota Century Code, in the amount of $ ________ _______, is included with the permit application.
Name of Official Authorized to Represent the Applicant

Todd Joyner

I, the above named, certify that: 1. All information and documents required by Sections 38-14.1-13, 38-14.1-14, and 38-14.1-15 of the North Dakota Century Code and Article 69-05.2 of the North Dakota Administrative Code, are submitted as part of this permit application; 2. Information and documentation contained in the permit application affirmatively demonstrate that: a. The permit application is accurate and complete and all the requirements of Chapter 38-14.1 of the North Dakota Century Code and Article 69-05.2 of the North Dakota Administrative Code have been complied with; b. Reclamation as required by Chapter 38-14.1 of the North Dakota Century Code and Article 69-05.2 of the North Dakota Administrative Code can be accomplished under the reclamation plan contained in this permit application; c. An assessment of the probable cumulative impact of all anticipated mining in the general area on the hydrologic balance as specified in subdivision o of subsection 1 of Section 38-14.1-14 of the North Dakota Century Code has been made and the proposed operation has been designed to prevent material damage to the hydrologic balance both on and off the mine site;

The area proposed to be affected is not included within an area designated unsuitable for all or certain types of surface d. coal mining and is not within an area under study for such designation in an administrative proceeding; The proposed surface coal mining operation will not interrupt, discontinue or preclude farming on alluvial valley floors e. that are irrigated or naturally subirrigated and will not materially damage the quantity or quality of water in surface or underground water systems that supply these alluvial valley floors; and f. The permit applicant has the legal right to surface mine the land for which this permit application is made and all of the requirements of Chapter 38-18 of the North Dakota Century Code have been complied with.
Page 1 of 2

South Heart Lignite Mine Metes and Bounds Legal Description of the Permit Area A tract located in Sections 9, 10, 14, 15, 16, 17, 20, 21, 22, 23, 27, 28, 29, 33, and 34, T139N, R98W, Fifth Principal Meridian, Stark County, ND, more particularly described as follows: Beginning at corner No. 301, the northeast corner of Section 27; thence S 01º57'02" W a distance of 5,282.7 feet to corner No. 302, the southeast corner of Section 27; thence S 02º05'35" W along the east line of Section 34 a distance of 372.5 feet to corner No. 303; thence N 88º31'26" W a distance of 5,546.0 feet to corner No. 304; thence N 02º01'43" E a distance of 3,018.8 feet to corner No. 305; thence N 37º05'03" W a distance of 1,687.9 feet to corner No. 306; thence N 88º30'36" W a distance of 1,318.4 feet to corner No. 307; thence N 45º26'08" W a distance of 1,782.6 feet to corner No. 308; thence N 88º34'34" W a distance of 1,419.0 feet to corner No. 309; thence N 01º48'27" E a distance of 5,278.4 feet to corner No. 310; thence N 88º17'42" W a distance of 4,154.0 feet to corner No. 311; thence N 02º07'56" E a distance of 4,159.8 feet to corner No. 312; thence S 88º14'42" E a distance of 1,612.7 feet to corner No. 313; thence S 02º09'15" W along the north-south quarter line of Section 17 a distance of 1,269.5 feet to corner No. 314; thence S 88º21'56" E a distance of 3,865.1 feet to corner No. 315; thence N 02º08'23" E a distance of 3,808.3 feet to corner No. 316; thence S 88º35'54" E a distance of 5,453.1 feet to corner No. 317; thence S 02º03'22" W a distance of 1,320.2 feet to corner No. 318; thence S 88º30'35" E along the section line a distance of 3,871.6 feet to corner No. 319, the northeast corner of Section 15; thence S 88º18'40" E along the north line of Section 14 a distance of 662.0 feet to corner No. 320; thence S 01º54'41" W a distance of 3,965.2 feet to corner No. 321; thence S 88º18'17" E a distance of 4,623.4 feet to corner No. 322; thence S 01º57'04" W along the section line a distance of 1,322.4 feet to corner No. 323, the northeast corner of Section 23; thence S 02º02'06" W along the east line of Section 23 a distance of 1,419.2 feet to corner No. 324; thence N 88º15'55" W a distance of 1,222.2 feet to corner No. 325; thence S 01º59'59" W a distance of 3,857.7 feet to corner No. 326; thence N 88º16'25" W along the south line of Section 23 a distance of 4,059.5 feet to corner No. 301, the point of beginning. Said tract contains 4,581.4 acres, more or less.

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SHSH-1001/063-2212A

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All bearings, distances and areas based on the Stark County ground grid, ND State Plane Coordinate System, NAD27, US survey foot. Corner No. 301 302 303 304 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 Prepared By: Date Prepared: Company: North 435,415.0 430,135.4 429,763.1 429,906.0 432,922.9 434,269.5 434,303.8 435,554.7 435,589.9 440,865.7 440,989.3 445,146.3 445,096.9 443,828.3 443,718.1 447,523.7 447,390.3 446,071.0 445,970.3 445,950.8 441,987.8 441,851.0 440,529.4 439,111.0 439,148.1 435,292.7 C. Vender 12-14-2007 Rev 11-12-2009 Interstate Engineering, inc. P.O. Box 1254 Mandan, North Dakota East 1,369,376.8 1,369,197.0 1,369,183.3 1,363,639.2 1,363,746.0 1,362,728.2 1,361,410.3 1,360,140.3 1,358,721.7 1,358,888.2 1,354,736.1 1,354,890.9 1,356,502.7 1,356,455.0 1,360,318.6 1,360,460.8 1,365,912.2 1,365,864.9 1,369,735.2 1,370,396.9 1,370,264.7 1,374,886.0 1,374,841.1 1,374,790.7 1,373,569.0 1,373,434.4

Revision 0

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SHSH-1001/063-2212A

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Revision 1

-1-

SHSH-1001/063-2212A

NEWSPAPER NOTICE OF FILING FOR A PERMIT TO CONDUCT SURFACE COAL MINING OPERATIONS South Heart Coal LLC (SHC), located at 601 Jefferson Street, Suite 3600, Houston, TX, has filed a mine permit application for the South Heart Lignite Mine with the North Dakota Public Service Commission (PSC) to conduct surface coal mining operations in the State of North Dakota (ND). The Permit Area is located in Stark County, ND, approximately two miles southwest of the town of South Heart. The proposed Permit Area encompasses approximately 4,581.4 acres of land.

The Permit Area is within Township 139 North, Range 98 West, all or portions of sections 9, 10, 14, 15, 16, 17, 20, 21, 22, 23, 27, 28, 29, 33, and 34. This area can be found on the Belfield South East USGS 7.5 minute quadrangle map. Approximately 3,281.9 acres of land located within the Permit Boundary will be affected by the proposed mining operations. Location and boundaries of the land proposed to be affected by the permit are shown on the map accompanying this noticeenclosed map. In addition, a list of the surface and coal owners within the Permit Boundary is provided below. Township 139 North, Range 98 West, Stark County Section 9: Surface Ownership: Coal Ownership: Section 9: Surface Ownership: Coal Ownership: Section 10: Surface Ownership: Coal Ownership: Section 14: Surface Ownership: Coal Ownership: Section 14: Surface Ownership: Coal Ownership: SW¼ Gary L. and Barbara Meduna Great Northern Properties Limited Partnership SE¼, less railroad tract James and Lisa Wagner Great Northern Properties Limited Partnership SW¼, less railroad tract Robert B. Pavel Robert B. Pavel NW¼ Robert B. Pavel Robert B. Pavel E½, less a tract in the NW¼NE¼ James D. and Rosella J. Perdaems Lynn Alan Dreyfus Janelle Hnatko Gerard M. Perdaems Mineral Trust John Francis Perdaems Mary Louise Peters Kenneth G. Ridl Mineral Trust Betsy Dreyfus Shapiro

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Revision 1 Section 14: Surface Ownership: Coal Ownership:

-2SW¼ James D. and Rosella J. Perdaems Arnie Brew Ken Brew Raymond W. Brew Wilbur Brew Cindy Romanyshyn U.S.A. All, less tract in SE¼SE¼ Mary Louis Peters, et al Donald P. Degel Janelle Hnatko Anna Perdaems Meyers Mineral Trust Cory Perdaems Mineral Trust Gerard M. Perdaems Mineral Trust John Francis Perdaems Mary Louise Peters Rosemarie A. Vetter Tract in SE¼SE¼ John F. Buckman John F. Buckman Donald P. Degel Anna Perdaems Meyers Mineral Trust Cory Perdaems Mineral Trust Gerard M. Perdaems Mineral Trust Rosemarie A. Vetter N½, SE¼ Mary Louis Peters, et al Donald P. Degel Janelle Hnatko State of North Dakota Anna Perdaems Meyers Mineral Trust Cory Perdaems Mineral Trust Gerard M. Perdaems Mineral Trust John Francis Perdaems Mary Louise Peters Rosemarie A. Vetter SW¼ Robert F. and Brenda K. Kuylen Patrick and Katherine Kuylen State of North Dakota

SHSH-1001/063-2212A

Section 15: Surface Ownership: Coal Ownership:

Section 16: Surface Ownership: Coal Ownership:

Section 17: Surface Ownership: Coal Ownership:

All, less tract in the SW¼SW¼ Robert F. and Brenda K. Kuylen Great Northern Properties Limited Partnership

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Revision 1 Section 20: Surface Ownership: Coal Ownership: Section 20: Surface Ownership: Coal Ownership: Section 21: Surface Ownership: Coal Ownership: Section 22: Surface Ownership: Coal Ownership:

-3SE¼ Kenneth D. Kudrna U.S.A.

SHSH-1001/063-2212A

NW¼, less a tract in the NW¼NW¼, NE¼ less a tract in the SW¼NE¼ Patrick Kuylen (80%) Katherine Kuylen (20%) U.S.A. All Robert F. and Brenda K. Kuylen Great Northern Properties Limited Partnership Section 22 N½ Section 23 All James D. and Rosella J. Perdaems Donald P. Degel Janelle Hnatko Anna Perdaems Meyers Mineral Trust Cory Perdaems Mineral Trust Gerard M. Perdaems Mineral Trust John Francis Perdaems Mary Louise Peters Rosemarie A. Vetter Tract in the N½SE¼ Jerry F. and Sandra M. Perdaems Carlene F. Carter Karla H. Erdahl Robert Erdahl, Jr. Janelle Hnatko Bryan A. Kostelecky Estates of Lewie and Ellen Kostelecky Arnold and Mary Luptak Dorothy Luptak Jerry F. and Sandra M. Perdaems John Francis Perdaems Mary Louise Peters Michael R. Price Andy A. Reisenauer Donald R. Reisenauer Alice E. Solovon Maragery A. Taylor Susan L. Willer Linda L. Yoder Evelyn Mae Zinda

Section 22: Surface Ownership: Coal Ownership:

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Revision 1 Section 22: Surface Ownership: Coal Ownership:

-4S½, less a tract in the N½SE¼ Jerry F. and Sandra M. Perdaems Carlene F. Carter Karla H. Erdahl Robert Erdahl, Jr. Janelle Hnatko Bryan A. Kostelecky Estates of Lewie and Ellen Kostelecky Arnold and Mary Luptak Dorothy Luptak Gerard M. Perdaems Mineral Trust John Francis Perdaems Mary Louise Peters Michael R. Price Andy A. Reisenauer Donald R. Reisenauer Alice E. Solovon Maragery A. Taylor Susan L. Willer Linda L. Yoder Evelyn Mae Zinda Section 23 All James D. and Rosella J. Perdaems Donald P. Degel Janelle Hnatko Anna Perdaems Meyers Mineral Trust Cory Perdaems Mineral Trust Gerard M. Perdaems Mineral Trust John Francis Perdaems Mary Louise Peters Rosemarie A. Vetter

SHSH-1001/063-2212A

Section 23: Surface Ownership: Coal Ownership:

Section 27: Surface Ownership: Coal Ownership: Section 28: Surface Ownership: Coal Ownership:

All Patrick Kuylen (80%) Katherine Kuylen (20%) Great Northern Properties Limited Partnership NE¼ Patrick Kuylen (71.4%) Katherine Kuylen (29.6%) Richard H. Johnson Robert K. Johnson W½, SE¼, less tract in the SE¼SW¼SW¼ Patrick and Katherine Kuylen U.S.A. All, less a tract in the SE¼SW¼SW¼ Glen R. Wagner Great Northern Properties Limited Partnership

Section 28: Surface Ownership: Coal Ownership: Section 29: Surface Ownership: Coal Ownership:

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Revision 1 Section 33: Surface Ownership: Coal Ownership: Section 34: Surface Ownership: Coal Ownership:

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SHSH-1001/063-2212A

NE¼ Larry R. Klein Great Northern Properties Limited Partnership NE¼½ Leocadia Emmil Family Trust Eddie Aalgard Trust No. 2 Anthony Energy, LTD Frank J. Bavendick Madelon L. Bradshaw W. L. Braun Oil Properties Revocable Trust Louise Sylvia Chizum Selma S. Cohen Carl U. Daniels, Virginia A. D. Richards, Olive J. B. Poe, and Alice D. Hunt Judith M. Davis Farmers Elevator Company of Arthur Jon Marie Fox Eve Herrington Frost Debra Gillespie Miller, Marcy A. Gillespie, Sharyn Gillespie Thornton, Hillary Gillespie George, and Clarke B. Gillespie Jr. R. O. Gregerson Trust Hedberg Family Limited Partnership G. E. Holmstrom Karen W. Klein Judith Ann Lamb Martha Leonard Revocable Trust 75-6356886 Mary Leonard Children’s Trust 75-6412990 Miranda Leonard Revocable Trust 75-6356894 C. H. Lockrem M. K. Lynum Giles M. Mead Foundation Linda F. Moses, Ellen A. Moses, and Carolyn M. Glastris Elisabeth A. O’Connell Joseph W. O’Connell Michael B. O’Connell PANAN Energy, Inc. Marital Trust Under Last Will of A. M. Pate Jr. Verna Kathryn Poole Prince Petroleum Company, Inc. Larry G. Ragan Revocable Management Trust Red Crown Royalties, LLC J. W. Scott Gary B. Smith Revocable Management Trust Walt Smith VML Resources, Inc. Deane M. White WOC Trust NW¼½ Leocadia Emmil Family Trust U.S.A.
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Section 34: Surface Ownership: Coal Ownership:

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Revision 1

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SHSH-1001/063-2212A

Mine layout and related construction activities will be conducted within 100 feet of the right-of-way of several section lines. Once mining is complete and reclamation has begun, all of the section line rights-of-way and county roads affected during mining activities will be reclaimed to a condition equal to or better than their pre-mining conditions. Unless otherwise noted, all sections are within Township 139 North, Range 98 West. Operations within 100 feet of the outside rights-of-way of the following section lines will be necessary during the planned mining of this permit area. The north-south section lines between: • •

Sections 14 and 15 Sections 22 and 23

During the term of the permit, mining and related construction activities will need to be located across several section lines. SHC proposes to close some or all of the following section line rights-of-way during the term of mining and reclamation. The east-west section lines between: • • • • • • • • • • •

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Revision 1 The north-south section lines between: • • • • • • • •

-7-

SHSH-1001/063-2212A

Sections 9 and 10 within the permit boundary Sections 16 and 17 Sections 15 and 16 Sections 21 and 22 Sections 20 and 21 Sections 27 and 28 Sections 33 and 34 The northern ¼ of Sections 28 and 29

Due to the section line right-of-way closures and the associated road closures, SHC proposes to construct three new road segments along the following section line rights-of-way. The section line closures between Sections 28 and 33, and between Sections 27 and 34 will not take place until after the new road segments are in place. The east-west section lines between: • •

Section 33 and Section 4 of Township 138 North, Range 98 West Section 34 and Section 3 of Township 138 North, Range 98 West

The north-south section line between: •

Sections 32 and 33

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SHSH-1001/063-2212A

removed and ultimately replaced over the life of the mine. SHC will obtain approval from the Stark County Board of Commissioners before making any changes to the public rights of way. All final road designs and construction will be subject to approval from the Stark County Board of Commissioners and will comply with all county road construction guidelines. The following county and section line roads will be affected during certain periods of the mine life: In Section 16 and 15 of Township 139 North, Range 98 West there is one unpaved road that will be closed during mining and is listed below: • East-west road located along the south section line.

In Section 22 of Township 139 North, Range 98 West there is one unpaved road that will be closed during mining and is listed below: • North-south road located along the west section line.

In Section 20 of Township 139 North, Range 98 West there are three unpaved roads that will be closed during mining and are listed below: • • • East-west road located along the north section line; East-west road bisecting Section 20 at the mid-line of the section; and East-west road running along the south section line.

In Section 27 of Township 139 North, Range 98 West there are three unpaved roads that will be closed during mining and are listed below: • • • East-west road located along portions of the north section line; North-South road located along the southern portion of the west section line; North-South road located along the northern portion of the west section line.

In Section 33 of Township 139 North, Range 98 West there are two unpaved roads that will be closed during mining and are listed below: • • East-west road located along the north section line; North-South road located along the east section line.

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Revision 1

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SHSH-1001/063-2212A

SHC will construct a temporary road connecting the western section line road in Section 20 with the road that bisects Section 20 north to south. This road location will have minimal or no travel affects on those residents who use this road. Upon approval of the road closings and the new road location by the Stark County Board of County Commissioners, approximately 1,200 ft of existing road in the northern portion of Section 20 and approximately 4,000 ft of the existing roads located in the middle and southern portions of Section 20 will be improved. Also, approximately 3,200 ft of new road will be constructed to connect the northern road to the middle road. SHC will also construct a temporary road connecting the northern section line road in Section 33 with a temporary road that runs along the south section line in Section 33. Upon approval of the road closings and the new road location by the Stark County Board of County Commissioners, approximately 10,500 ft of new road will be constructed in Section 33. An overpass will be constructed on 122nd Avenue prior to 2038. The overpass will run north to south along 122nd Avenue in the SW1/4 of Section 23 and SE1/4 of Section 22 of Township 139 North, Range 98 West. The overpass will stay in place and not be removed post-mining. The existing unpaved section line road (41st Street SW) running east to west along the north section line of Sections 33 and 34 of Township 139 North, Range 98 West will be, at least temporarily, closed. The section line road that runs north to south along the west section line of Section 34 of Township 139 North, Range 98 West will also be closed. Prior to the closure of these existing section line roads, a new section line road will be constructed that runs east to west along the south section line of Section 34 of Township 139 North, Range 98 West. The preliminary proposed road

relocations that SHC has designed will have minimal or no travel affects on residents who use these roads. Once the Stark County Board of County Commissioners has approved the SHC-proposed road relocations and re-alignments, the 5,300 ft of the new section line road that will run east to west along the southern section line of Section 34 of Township 139 North, Range 98 West will be built. Also, approximately 1,000 ft of the section line road along both the northern and southern portions of Sections 33 and 34 will be improved. Prior to the beginning of mine construction, the following roads will be closed throughout the entire mine life: • The unpaved section line roads along the western boundary of Section 21 of Township 139 North, Range 98 West;

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Revision 1 •

-10-

SHSH-1001/063-2212A

The eastern 1/3 of the unpaved road lying along the northern section line road in Section 27 of Township 139 North, Range 98 West; The northern and eastern unpaved section line road in Section 33 of Township 139 North, Range 98 West; The southern 1/2 of the unpaved road lying along the western section line road in Section 27 of Township 139 North, Range 98 West; and All other unpaved roads in Section 27 of Township 139 North, Range 98 West.

•

Once mining is complete within the Permit Area and reclamation has begun, all the section line and county roads affected during the mining activities will be reclaimed to a condition equal to or better than their pre-mining conditions. A copy of the application for a surface coal mining permit is available for public inspection at the offices of the North Dakota Public Service Commission, Capitol Building, located at 600E. Boulevard, Dept. 408, in Bismarck, ND and at the Office of the County Auditor, in the Stark County Courthouse, located at 51 3rd Street E, in Dickinson, ND. Written comments, objections, or requests for informal conferences on the application or a petition to designate the area as unsuitable for surface coal mining operations may be submitted by any person with an interest which is or may be adversely affected to the North Dakota Public Service Commission, Capitol Building, Bismarck, North Dakota, within 30 days after the last publication of this notice. South Heart Coal LLC 601 Jefferson Street, Suite 3600 Houston, TX 77002

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APPENDIX 1.3-1 SURFACE OWNERSHIP TITLE_ID Legal Description Surface Owner Agreement Signed Signature Page Percent of Percent of Permit Area Parcel Signed Signed 100.00% 100% 100% 0.94% 1.76%

S-1399809-F

Inside Permit Boundary - 4,581.35 Acres Township 139 North, Range 98 West, Meduna, Gary L. and Section 9, SW1/4 Barbara Township 139 North, Range 98 West, Section 9, SE1/4 less railroad tracts Township 139 North, Range 98 West, Section 10, SW1/4 less railroad tracts Township 139 North, Range 98 West, Section 14, E1/2 less a tract in the NW1/4NE1/4 Township 139 North, Range 98 West, Section 14, NW1/4 Township 139 North, Range 98 West, Section 14, SW1/4 Township 139 North, Range 98 West, Section 15, All less a tract in the SE1/4SE1/4 Wagner, James and Lisa

Yes

47 35

S-1399809-G

Yes

S-1399810-C

Pavel, Robert B. Perdaems, James D. and Rosella J. Pavel, Robert B. Perdaems, James D. and Rosella J. Peters, Mary Louise, et al. Signed by Mary Louise Peters, John Francis Perdaems, Janelle Hnatko

Yes

100%

0.96%

S-1399814-A

Yes

9 10 9 39 40 38 41 A 40 38

100% 100% 100%

1.77% 0.92% 2.24%

S-1399814-B S-1399814-C

Yes Yes Yes Yes Yes

S-1399815-A

100%

13.88%

S-1399815-B

Township 139 North, Range 98 West, Section 15, Tract in the SE1/4SE1/4

Buckman, John F.

Yes

100%

0.13%

S-1399816-A

Township 139 North, Range 98 West, Section 16, N1/2, SE1/4

Peters, Mary Louise, et al. Signed by Mary Louise Peters, John Francis Perdaems, Janelle Hnatko

Yes Yes Yes

100%

8.89%

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APPENDIX 1.3-1 SURFACE OWNERSHIP TITLE_ID
S-1399816-B

Legal Description Township 139 North, Range 98 West, Section 16, SW1/4 Township 139 North, Range 98 West, Section 17, All less a tract in the SW1/4SW1/4 Township 139 North, Range 98 West, Section 20, NW1/4 less a tract in the Township 139 North, Range 98 West, Section 20, SE1/4 Township 139 North, Range 98 West, Section 21, All Township 139 North, Range 98 West, Section 22, Section 22 N1/2, Section 23 All Township 139 North, Range 98 West, Section 22, S1/2 less a tract in the N1/2SE1/4 Township 139 North, Range 98 West, Section 22, Tract in the N1/2SE1/4 Township 139 North, Range 98 West, Section 27, All Township 139 North, Range 98 West, Section 28, NE1/4 Township 139 North, Range 98 West, Section 28, W1/2, SE1/4

Surface Owner Kuylen, Robert F. and Brenda K. Kuylen, Robert F. and Brenda K. Kuylen, Katherine R. Kuylen, Patrick Kudrna, Kenneth D. Kuylen, Robert F. and Brenda K. Perdaems, James D. and Rosella J. Perdaems, Jerry F. and Sandra M. Perdaems, Jerry F. and Sandra M. Kuylen, Katherine R. Kuylen, Patrick Kuylen, Patrick Kuylen, Patrick and Katherine Kuylen, Patrick and Katherine

Agreement Signed
Yes

Signature Page 45 45 44 43 10 45 42

Percent of Percent of Permit Area Parcel Signed Signed 100% 100% 100% 100% 100% 100% 3.47% 6.97% 0.30% 0.11% 14.01% 18.58%

S-1399817-A

Yes Yes Yes Yes Yes

S-1399820-A S-1399820-B S-1399821-A

S-1399822-A

Yes

S-1399822-B

Yes

100%

6.82%

S-1399822-C

Yes Yes Yes Yes Yes Yes

46 44 43 43 43 and 44 10

100% 100% 100% 100%

0.13% 13.99% 2.27% 0.86%

S-1399827-A

S-1399828-A

S-1399828-B

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APPENDIX 1.3-1 SURFACE OWNERSHIP TITLE_ID Legal Description Surface Owner Agreement Signed Signature Page Percent of Percent of Permit Area Parcel Signed Signed

S-1399829-A

Township 139 North, Range 98 West, Section 29, All less a tract in the SW1/4SW1/4 Township 139 North, Range 98 West, Section 33, NE1/4 Township 139 North, Range 98 West, Section 34, N1/2

Wagner, Glen R. - Signed by Cornelius and Kathleen Kooren before property was conveyed to Glen Wagner Klein, Larry R.

Yes

100%

0.00%

S-1399833-A

Yes Yes Option to Purchase Yes Surface Use Agreement

10 5

100%

0.05%

S-1399834-A

Emmil, Leocadia Family Trust

100% 9

0.96%

Outside Permit Boundary
S-1399808-A

Township 139 North, Range 98 West, Zarak, William J, Jr. and Section 8, All less railroad tracts in the Darlene L. Family Trust N1/2 Township 139 North, Range 98 West, Section 9, Railroad tracts in the SE1/4 Township 139 North, Range 98 West, Section 10, E1/2 less railroad tract Township 139 North, Range 98 West, Section 10, Railroad tracts in the SW1/4 Burlington Northern, Inc. Meduna, Gary L. and Barbara Burlington Northern, Inc.

S-1399809-H

S-1399810-A

S-1399810-D

S-1399810-E

Township 139 North, Range 98 West, Burlington Northern, Inc. Section 10, Railroad tracts in the SE1/4

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APPENDIX 1.3-1 SURFACE OWNERSHIP TITLE_ID Legal Description Township 139 North, Range 98 West, Section 11, Tract in the SW1/4SW1/4 Surface Owner Agreement Signed Signature Page Percent of Percent of Permit Area Parcel Signed Signed

S-1399811-A

Obritsch, Lambert

S-1399811-B

S-1399811-C

S-1399811-D

Township 139 North, Range 98 West, Section 11, E1/2SW1/4 less railroad Wagner, Jerry and Millie tract Township 139 North, Range 98 West, Section 11, SW1/4 lying south of Pavel, Robert B. railroad, less a tract in the SW1/4SW1/4 Township 139 North, Range 98 West, Section 11, W1/2SW1/4 lying north of Wagner, Jerry and Millie the railroad tract Township 139 North, Range 98 West, Burlington Northern, Inc. Section 11, Railroad tract in the SW1/4 Township 139 North, Range 98 West, Section 13, Tract in the W1/2SW1/4 Township 139 North, Range 98 West, Section 13, Tract in the W1/2SW1/4 Township 139 North, Range 98 West, Section 13, Tract in the NW1/4SW1/4 Township 139 North, Range 98 West, Section 13, Tract in the SW1/4 Wandler, Donald M.

Yes

100%

S-1399811-E

S-1399813-A

S-1399813-B

O'Brien, Darby and Renita Perdaems, James D. and Rosella J. Perzinski, Eugenia

S-1399813-C

Yes

100.00%

S-1399813-D

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APPENDIX 1.3-1 SURFACE OWNERSHIP TITLE_ID Legal Description Township 139 North, Range 98 West, Section 13, Tract in the SW1/4SW1/4 Township 139 North, Range 98 West, Section 13, Tract in the SW1/4 Township 139 North, Range 98 West, Section 17, Tract in the SW1/4SW1/4 Township 139 North, Range 98 West, Section 18, E1/2 Township 139 North, Range 98 West, Section 19, NE1/4 less tract in the NE1/4NE14 Township 139 North, Range 98 West, Section 19, Tract in the NE1/4NE14 Surface Owner Perdaems, James D. and Rosella J. O'Brien, Darby and Renita West Plains Electric Cooperative Zarak, William J, Jr. and Darlene L. Family Trust Kudrna, Kenneth D.
Yes

Agreement Signed
Yes

Signature Page 9

Percent of Percent of Permit Area Parcel Signed Signed 100.00%

S-1399813-E

S-1399813-F

S-1399817-B

S-1399818-A

S-1399819-A

100%

S-1399819-E

Montana Dakota Utilities

S-1399820-D

Township 139 North, Range 98 West, Williston Basin Interstate Section 20, Tract in the NW1/4NW1/4 Pipeline Co. Township 139 North, Range 98 West, Section 20, Tract in the SW1/4NE1/4 Township 139 North, Range 98 West, Section 24, NW1/4 Township 139 North, Range 98 West, Section 24, SW1/4 Township 139 North, Range 98 West, Section 26, W1/2, N1/2NE1/4, SW1/4NE1/4, SW1/4SE1/4 U.S.A. Western Power Administration Emmil, Leocadia Family Trust Kudrna, Randall Wagner Farms LP
Yes

S-1399820-E

S-1399824-B S-1399824-D

100%

S-1399826-B

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APPENDIX 1.3-1 SURFACE OWNERSHIP TITLE_ID Legal Description Township 139 North, Range 98 West, Section 35, NW/4 less a tract in the NW1/4NW1/4 Township 139 North, Range 98 West, Section 35, Tract in the NW/4NW1/4 Surface Owner Agreement Signed Signature Page Percent of Percent of Permit Area Parcel Signed Signed

S-1399835-B

Wagner Farms LP

S-1399835-D

Garrison, Mark and Sheila

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APPENDIX 1.3-2 COAL OWNERSHIP Percent of Parcel Signed Percent of Percent of 2,617.7 4,581.4 Acre Acre Mine Pit Permit Area Area Signed Signed 81.6% 84.8%

Coal Owners Within Each Title ID

Is Agreement Signed, and By Whom

Signature Page

Percent of Total Area Signed Inside Permit Boundary and Mine Pits C-1399809-F (42.97 Acres*) (Click to open title report) Great Northern Properties Limited Partnership C-1399809-G (80.52 Acres*) Great Northern Properties Limited Partnership C-1399815-A (636.03 Acres*) Perdaems, Gerard M. Mineral Trust, Gerard M. Perdaems and Mildred F. Perdaems, Trustees Peters, Mary Louise Perdaems, John Francis Hnatko, Janelle Cory Perdaems Mineral Trust, Robert S. and Corliss J. Perdaems, Trustees Anna Perdaems Meyers Mineral Trust, Jeanne M. Link and Melvin G. Meyers, Trustees Degel, Donald P. Township 139 North, Range 98 West, Section 9, SW1/4 Yes Township 139 North, Range 98 West, Section 9, SE1/4 less railroad tract Yes Township 139 North, Range 98 West, Section 15, Tract in the SE1/4SE1/4 Yes Yes Yes Yes Signed by Perdaems, C.J., not signed by Perdaems, Phyllis before property was conveyed to the Cory Perdaems Mineral Trust Signed by Meyers, Anna Signed by Degel, Ida P. before property was conveyed to Donald by the Ida Perdaems Degel, Peter S. Degel Estate. Signed by Degel, Ida P. before property was conveyed to Rosemarie by the Ida Perdaems Degel, Peter S. Degel Estate.
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Agreement 31 Agreement 31 Agreement 33 38 40 39 34

100% 100% 100% 100% 90% 20% 7% 7% 7% 10%

0.9%

0.1%

1.8%

0.2%

12.5%

21.0%

20%

10%

Vetter, Rosemarie A.

10%

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APPENDIX 1.3-2 COAL OWNERSHIP Percent of Parcel Signed Percent of Percent of 2,617.7 4,581.4 Acre Acre Mine Pit Permit Area Area Signed Signed 81.6% 84.8% 0.1% 0.2%

Coal Owners Within Each Title ID

Is Agreement Signed, and By Whom

Signature Page

Percent of Total Area Signed C-1399815-B (5.74 Acres*) Perdaems, Gerard M. Mineral Trust, Gerard M. Perdaems and Mildred F. Perdaems, Trustees Buckman, John F. Cory Perdaems Mineral Trust, Robert S. and Corliss J. Perdaems, Trustees Anna Perdaems Meyers Mineral Trust, Jeanne M. Link and Melvin G. Meyers, Trustees Degel, Donald P. Township 139 North, Range 98 West, Section 15, Tract in the SE1/4SE1/4 Yes Yes Signed by Perdaems, C.J., not signed by Perdaems, Phyllis before property was conveyed to the Cory Perdaems Mineral Trust Signed by Meyers, Anna Signed by Degel, Ida P. before property was conveyed to Donald by the Ida Perdaems Degel, Peter S. Degel Estate. Signed by Degel, Ida P. before property was conveyed to Rosemarie by the Ida Perdaems Degel, Peter S. Degel Estate. Township 139 North, Range 98 West, Section 16, N1/2, SE1/4 Signed by Meyers, Anna Signed by Degel, Ida P. before property was conveyed to Donald by the Ida Perdaems Degel, Peter S. Degel Estate. Yes Agreement 33 41 34 90% 20% 20% 10%

20%

10%

Vetter, Rosemarie A. C-1399816-A (407.28 Acres*) Anna Perdaems Meyers Mineral Trust, Jeanne M. Link and Melvin G. Meyers, Trustees Degel, Donald P. Hnatko, Janelle

36 Agreement 37

10% 45% 10% 4.0% 6.8%

36 39

5% 3%

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APPENDIX 1.3-2 COAL OWNERSHIP Percent of Parcel Signed Percent of Percent of 2,617.7 4,581.4 Acre Acre Mine Pit Permit Area Area Signed Signed 81.6% 84.8%

Coal Owners Within Each Title ID

Is Agreement Signed, and By Whom

Signature Page

Percent of Total Area Signed SHC will file an application for coal lease with the State of North Dakota. A copy of the lease agreement will be included in the permit upon finalization. Signed by Perdaems, C.J., not signed by Perdaems, Phyllis before property was conveyed to the Cory Perdaems Mineral Trust Yes Yes Yes Signed by Degel, Ida P. before property was conveyed to Rosemarie by the Ida Perdaems Degel, Peter S. Degel Estate. Township 139 North, Range 98 West, Section 16, SW1/4 Yes SHC will file an application for coal lease with the State of North Dakota. A copy of the lease agreement will be provided in the final Mine Permit Application. Township 139 North, Range 98 West, Section 17, All Yes Township 139 North, Range 98 West, Section 17, All Yes Township 139 North, Range 98 West, Section 22 N1/2, Section 23 All
Golder Associates

North Dakota, State of

Cory Perdaems Mineral Trust, Robert S. and Corliss J. Perdaems, Trustees Perdaems, Gerard M. Mineral Trust, Gerard M. Perdaems and Mildred F. Perdaems, Trustees Perdaems, John Francis Peters, Mary Louise Vetter, Rosemarie A. C-1399816-B (158.97 Acres*) Kuylen, Patrick and Katherine North Dakota, State of C-1399817-A (319.19 Acres*) Great Northern Properties Limited Partnership C-1399821-A (641.73 Acres*) Great Northern Properties Limited Partnership C-1399822-A (851.15 Acres*) Revision 1

33 40 38 36 Agreement 43, 44

10% 3% 3% 5% 50% 50% 0% 1.7% 3.0%

Agreement 31 Agreement 31 Agreement

100% 100% 100% 100% 90%

7.0%

8.7%

14.0%

18.2%

16.7%

12.4%

SHSH-1001/063-2212A

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APPENDIX 1.3-2 COAL OWNERSHIP Percent of Parcel Signed Percent of Percent of 2,617.7 4,581.4 Acre Acre Mine Pit Permit Area Area Signed Signed 81.6% 84.8%

Coal Owners Within Each Title ID

Is Agreement Signed, and By Whom

Signature Page

Percent of Total Area Signed Perdaems, Gerard M. Mineral Trust, Gerard M. Perdaems and Mildred F. Perdaems, Trustees Peters, Mary Louise Perdaems, John Francis Hnatko, Janelle Cory Perdaems Mineral Trust, Robert S. and Corliss J. Perdaems, Trustees Anna Perdaems Meyers Mineral Trust, Jeanne M. Link and Melvin G. Meyers, Trustees Degel, Donald P. Yes Yes Yes Yes Signed by Perdaems, C.J., not signed by Perdaems, Phyllis before property was conveyed to the Cory Perdaems Mineral Trust Signed by Meyers, Anna Signed by Degel, Ida P. before property was conveyed to Donald by the Ida Perdaems Degel, Peter S. Degel Estate. Signed by Degel, Ida P. before property was conveyed to Rosemarie by the Ida Perdaems Degel, Peter S. Degel Estate. Township 139 North, Range 98 West, Section 22, S1/2 less a tract in the N1/2SE1/4 Yes Yes Yes Yes No (shown on signature page as Robert Erdahl) Signed by Reisenauer, Elizabeth before property was conveyed to Solovon, Alice E.
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33 38 40 39 34

20% 7% 7% 7% 10%

20%

10%

Vetter, Rosemarie A. C-1399822-B (312.24 Acres*) Perdaems, Gerard M. Mineral Trust, Gerard M. Perdaems and Mildred F. Perdaems, Trustees Peters, Mary Louise Perdaems, John Francis Hnatko, Janelle Erdahl, Robert Jr. Solovon, Alice E.

36 Agreement 33 38 40 39 49 50

10% 95% 13% 4% 4% 4% 0% 6% 6.5% 3.6%

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APPENDIX 1.3-2 COAL OWNERSHIP Percent of Parcel Signed Percent of Percent of 2,617.7 4,581.4 Acre Acre Mine Pit Permit Area Area Signed Signed 81.6% 84.8%

Coal Owners Within Each Title ID

Is Agreement Signed, and By Whom

Signature Page

Percent of Total Area Signed Reisenauer, Andy A. Reisenauer, Donald R. Carter, Carlene F. Kostelecky, Bryan A. Signed by Reisenauer, Elizabeth before property was conveyed to Reisenauer, Andy A. Signed by Reisenauer, Elizabeth before property was conveyed to Reisenauer, Donald R. Signed by Reisenauer, Elizabeth before property was conveyed to Carter, Carlene F. Yes Signed by Kostelecky, Nettie Jean (heir of Estates of Lewie & Ellen Kostelecky, Lewis Kostelecky, Phoebe K Leo). Signed by Kostelecky, Keith et ux (Susan) (heir to Estates of Lewie & Ellen Kostelecky, Lewis Kostelecky, Phoebe K Leo) (Protection Lse). Signed by Sagun, Susan K et vir (Frank) (heir to Estates of Lewie & Ellen Kostelecky, Lewis Kostelecky, Phoebe K Leo) (Protection Lse). Signed by Courson, Debra L et vir (Thomas) (heir to Estates of Lewie & Ellen Kostelecky, Lewis Kostelecky, Phoebe K Leo) (Protection Lse). Yes Yes Yes 50 50 50 51 52 6% 6% 6% 8%

55 8% 53

Kostelecky, Lewie and Ellen, Estates of

54 60 61 62 8% 8% 8% 0% 48 48 48 1% 1% 1% SHSH-1001/063-2212A

Luptak, Arnold and Mary Zinda, Evelyn Mae Luptak, Dorothy Erdahl, Karla H. (former spouse of Robert No Erdahl) Signed by Price, Lois E. and Llewllyn B (LB) before Willer, Susan L. property was conveyed to Willer, Susan L. Signed by Price, Lois E. and Llewllyn B (LB) before Taylor, Maragery A. property was conveyed to Taylor, Maragery A. Signed by Price, Lois E. and Llewllyn B (LB) signed Price, Michael R. before property was conveyed to Price, Michael R. Revision 1
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APPENDIX 1.3-2 COAL OWNERSHIP Percent of Parcel Signed Percent of Percent of 2,617.7 4,581.4 Acre Acre Mine Pit Permit Area Area Signed Signed 81.6% 84.8%

Coal Owners Within Each Title ID

Is Agreement Signed, and By Whom

Signature Page

Percent of Total Area Signed Yoder, Linda L. C-1399827-A (640.99 Acres*) Great Northern Properties Limited Partnership C-1399828-A (104.01 Acres*) Johnson, Richard H. Johnson, Robert K. C-1399810-C (44.06 Acres*) Pavel, Robert B. C-1399814-A (80.92 Acres*) Dreyfus Shapiro, Betsy Dreyfus, Lynn Alan Hnatko, Janelle Perdaems, Gerard M. Mineral Trust, Gerard M. Perdaems and Mildred F. Perdaems, Trustees Perdaems, John Francis Peters, Mary Louise Ridl, Kenneth G. Mineral Trust, Kenneth G. Ridl, Trustee C-1399814-B (42.25 Acres*) Pavel, Robert B. Signed by Price, Lois E. and Llewllyn B (LB) signed before property was conveyed to Price, Michael R. Township 139 North, Range 98 West, Section 27, All Yes Township 139 North, Range 98 West, Section 28, NE1/4 Yes Yes Inside Permit Boundary but Outside Mine Pits Township 139 North, Range 98 West, Section 10, SW1/4 less railroad tracts Not Applicable Township 139 North, Range 98 West, Section 14, E1/2 less a tract in the NW1/4NE1/4 Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Township 139 North, Range 98 West, Section 14, NW1/4 Not Applicable
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48 Agreement 31 Agreement 63 64

1% 100% 100% 100% 50% 50% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% SHSH-1001/063-2212A 0.0% NA 0.0% NA 0.0% 0.0% 2.3% 0.3% 14.0% 10.2%

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APPENDIX 1.3-2 COAL OWNERSHIP Percent of Parcel Signed Percent of Percent of 2,617.7 4,581.4 Acre Acre Mine Pit Permit Area Area Signed Signed 81.6% 84.8% 0.0% NA

Coal Owners Within Each Title ID

Is Agreement Signed, and By Whom

Signature Page

Percent of Total Area Signed C-1399814-C (102.82 Acres*) U.S.A Brew, Raymond W. Brew, Wilbur Brew, Ken Brew, Arnie Romanyshyn, Cindy C-1399820-A (13.78 Acres*) U.S.A C-1399820-B (4.83 Acres*) U.S.A C-1399822-C (5.75 Acres*) Perdaems, Jerry F. and Sandra M. Peters, Mary Louise Perdaems, John Francis Hnatko, Janelle Erdahl, Robert Jr. Solovon, Alice E. Reisenauer, Andy A. Reisenauer, Donald R. Carter, Carlene F. Kostelecky, Bryan A. Revision 1
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Township 139 North, Range 98 West, Section 14, SW1/4 Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Township 139 North, Range 98 West, Section 20, N1/2 Not Applicable Township 139 North, Range 98 West, Section 20, SE1/4 Not Applicable Township 139 North, Range 98 West, Section 22, Tract in the N1/2SE1/4 Yes Yes Yes Yes No (Shown as Robert Erdahl) Signed by Reisenauer, Elizabeth before property was conveyed to Solovon, Alice E. Signed by Reisenauer, Elizabeth before property was conveyed to Reisenauer, Andy A. Signed by Reisenauer, Elizabeth before property was conveyed to Reisenauer, Donald R. Signed by Reisenauer, Elizabeth before property was conveyed to Carter, Carlene F. Yes
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0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Agreement 46 38 40 39 49 50 50 50 50 51 95% 13% 4% 4% 4% 0% 6% 6% 6% 6% 8%

0.0%

0.1%

SHSH-1001/063-2212A

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APPENDIX 1.3-2 COAL OWNERSHIP Percent of Parcel Signed Percent of Percent of 2,617.7 4,581.4 Acre Acre Mine Pit Permit Area Area Signed Signed 81.6% 84.8%

Coal Owners Within Each Title ID

Is Agreement Signed, and By Whom

Signature Page

Percent of Total Area Signed Signed by Kostelecky, Nettie Jean (heir of Estates of Lewie & Ellen Kostelecky, Lewis Kostelecky, Phoebe K Leo). Signed by Kostelecky, Keith et ux (Susan) (heir to Estates of Lewie & Ellen Kostelecky, Lewis Kostelecky, Phoebe K Leo) (Protection Lse). Signed by Sagun, Susan K et vir (Frank) (heir to Estates of Lewie & Ellen Kostelecky, Lewis Kostelecky, Phoebe K Leo) (Protection Lse). Signed by Courson, Debra L et vir (Thomas) (heir to Estates of Lewie & Ellen Kostelecky, Lewis Kostelecky, Phoebe K Leo) (Protection Lse). Yes Yes Yes 52

55 8% 53

Kostelecky, Lewie and Ellen, Estates of

54 60 61 62 8% 8% 8% 0% 48 48 48 48 1% 1% 1% 1% 0% 0% 0% 0.0% NA 0.0% NA

Luptak, Arnold and Mary Zinda, Evelyn Mae Luptak, Dorothy Erdahl, Karla H. (former spouse of Robert No Erdahl) Signed by Price, Lois E. and Llewllyn B (LB) before Willer, Susan L. property was conveyed to Willer, Susan L. Signed by Price, Lois E. and Llewllyn B (LB) before Taylor, Maragery A. property was conveyed to Taylor, Maragery A. Signed by Price, Lois E. and Llewllyn B (LB) signed Price, Michael R. before property was conveyed to Price, Michael R. Signed by Price, Lois E. and Llewllyn B (LB) signed Yoder, Linda L. before property was conveyed to Price, Michael R. C-1399828-B (23.76 Acres*) U.S.A C-1399828-D (15.87 Acres*) Revision 1
I:\06\2212A\0400\0401\Rev1\CH1\Appendix1_3\0632212A_1_APP1_3-2_R1_22SEP10.xlsxCoalTracts

Township 139 North, Range 98 West, Section 28, NW1/4 Not Applicable Township 139 North, Range 98 West, Section 28, SE1/4
Golder Associates

SHSH-1001/063-2212A

Page 8 of 14

APPENDIX 1.3-2 COAL OWNERSHIP Percent of Parcel Signed Percent of Percent of 2,617.7 4,581.4 Acre Acre Mine Pit Permit Area Area Signed Signed 81.6% 84.8% 0.0% NA

Coal Owners Within Each Title ID

Is Agreement Signed, and By Whom

Signature Page

U.S.A C-1399829-A (0.16 Acres*) Great Northern Properties Limited Partnership C-1399833-A (2.24 Acres*) Great Northern Properties Limited Partnership C-1399834-A (21.55 Acres*) Aalgard, Eddie, Trust No. 2 Anthony Energy, LTD Bavendick, Frank J. Bradshaw, Madelon L. Braun, W.L. Oil Properties Revocable Trust Chizum, Louise Sylvia Cohen, Selma S. Daniels, Carl U., et al. Davis, Judith M. Farmers Elevator Company of Arthur Fox, Jon Marie Frost, Eve Herrington Gillespie Miller, Debra, et al. Gregerson, R.O. Trust Hedberg Family Limited Partnership Holmstrom, G.E. Klein, Karen W. Lamb, Judith Ann

Percent of Total Area Signed Not Applicable 0% Township 139 North, Range 98 West, Section 29, All Agreement 0% Yes Township 139 North, Range 98 West, Section 33, NE1/4 Yes Township 139 North, Range 98 West, Section 34, NE1/4 Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable
Golder Associates

31 Agreement 31

0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% SHSH-1001/063-2212A 0.0% NA 0.0% NA

Revision 1
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Page 9 of 14

APPENDIX 1.3-2 COAL OWNERSHIP Percent of Parcel Signed Percent of Percent of 2,617.7 4,581.4 Acre Acre Mine Pit Permit Area Area Signed Signed 81.6% 84.8%

Coal Owners Within Each Title ID

Is Agreement Signed, and By Whom

Signature Page

Percent of Total Area Signed Leonard, Martha Revocable Trust 756356886 Leonard, Mary Children's Trust 756412990 Leonard, Miranda Revocable Trust 756356894 Lockrem, C.H. Lynum, M.K. Mead, Giles M. Foundation Moses, Linda F., et al. O'Connell, Elisabeth A. O'Connell, Joseph W. O'Connell, Michael B. PANAN Energy, Inc. Pate, A.M. Jr., Marital Trust Under Last Will of Poole, Verna Kathryn Prince Petroleum Company, Inc. Ragan, Larry G. Revocable Management Trust, Larry G. Ragan, Trustee Red Crown Royalties, LLC Scott, J.W. Smith, Gary B. Revocable Management Trust, Helen Pricer, Trustee Smith, Walt VML Resources, Inc. White, Deane M. Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable
Golder Associates

0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

0% 0% 0%

0% 0% 0% 0% SHSH-1001/063-2212A

Revision 1
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Page 10 of 14

APPENDIX 1.3-2 COAL OWNERSHIP Percent of Parcel Signed Percent of Percent of 2,617.7 4,581.4 Acre Acre Mine Pit Permit Area Area Signed Signed 81.6% 84.8%

Coal Owners Within Each Title ID

Is Agreement Signed, and By Whom

Signature Page

Percent of Total Area Signed WOC Trust, William Patrick O'Connell, Trustee C-1399834-C (22.54 Acres*) U.S.A C-1399808-A Farmer, Marjorie Conoco Phillips Company Rice, Dorothy Rice, Herbert Rice, Herbert Rice, Richard Rice, Richard Zarak, George W. and Arlene Family Mineral Trust, George W. and Arlene Zarak, Trustees Zarak, William Jr and Darlene Family Mineral Trust, William J. Jr. and Darlene L. Zarak, Trustees C-1399808-C U.S.A C-1399809-H Burlington Northern, Inc. C-1399810-D Burlington Northern, Inc. Revision 1
I:\06\2212A\0400\0401\Rev1\CH1\Appendix1_3\0632212A_1_APP1_3-2_R1_22SEP10.xlsxCoalTracts

Not Applicable Township 139 North, Range 98 West, Section 34, NW1/4 Not Applicable Outside Permit Boundary Township 139 North, Range 98 West, Section 8, NE1/4, N1/2NW1/4, N1/2SW1/4, less railroad tracts Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable

0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% NA NA 0.0% NA

Not Applicable Township 139 North, Range 98 West, Section 8, S1/2NW1/4, N1/2SW1/4, S1/2S1/2 Not Applicable Township 139 North, Range 98 West, Section 9, SE1/4 Railroad tracts in the NE1/4SE1/4 Not Applicable Township 139 North, Range 98 West, Section 10, Railroad tracts in the SW1/4 Not Applicable
Golder Associates

0% 0% 0% 0% 0% 0% 0% SHSH-1001/063-2212A NA NA NA NA NA NA

Page 11 of 14

APPENDIX 1.3-2 COAL OWNERSHIP Percent of Parcel Signed Percent of Percent of 2,617.7 4,581.4 Acre Acre Mine Pit Permit Area Area Signed Signed 81.6% 84.8% NA NA

Coal Owners Within Each Title ID

Is Agreement Signed, and By Whom

Signature Page

Percent of Total Area Signed C-1399810-E Burlington Northern, Inc. C-1399810-F Berger, Kim Cromer, Brandi Lynn Cromer, Nathan Daniel Maus, Mike Miner Trust, Michale J. Maus, Trustee Meduna, Gary L. and Barbara Muth, Brandon Muth, Carey Muth, Chad Muth, Kristen Nordsven, Mary E. C-1399811-A Obritsch, Lambert C-1399811-B Great Northern Properties Limited Partnership C-1399811-C Great Northern Properties Limited Partnership C-1399811-D Revision 1
I:\06\2212A\0400\0401\Rev1\CH1\Appendix1_3\0632212A_1_APP1_3-2_R1_22SEP10.xlsxCoalTracts

Township 139 North, Range 98 West, Section 10, Railroad tracts in the SE1/4 Not Applicable Township 139 North, Range 98 West, Section 10, SE1/4 less railroad tract Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Township 139 North, Range 98 West, Section 11, Tract in the SW1/4SW1/4 Not Applicable Township 139 North, Range 98 West, Section 11, E1/2SW1/4 less railroad tract Not Applicable Township 139 North, Range 98 West, Section 11, SW1/4 lying south of railroad, less a tract in the SW1/4SW1/4 Not Applicable Township 139 North, Range 98 West, Section 11, W1/2SW1/4 lying north of the railroad tract
Golder Associates

0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

SHSH-1001/063-2212A

Page 12 of 14

APPENDIX 1.3-2 COAL OWNERSHIP Percent of Parcel Signed Percent of Percent of 2,617.7 4,581.4 Acre Acre Mine Pit Permit Area Area Signed Signed 81.6% 84.8%

Coal Owners Within Each Title ID

Is Agreement Signed, and By Whom

Signature Page

Percent of Total Area Signed Great Northern Properties Limited Partnership C-1399811-E Burlington Northern, Inc. C-1399813-A Great Northern Properties Limited Partnership C-1399813-B Great Northern Properties Limited Partnership C-1399813-C Great Northern Properties Limited Partnership C-1399813-D Great Northern Properties Limited Partnership C-1399813-E Great Northern Properties Limited Partnership C-1399818-A U.S.A C-1399819-A Revision 1
I:\06\2212A\0400\0401\Rev1\CH1\Appendix1_3\0632212A_1_APP1_3-2_R1_22SEP10.xlsxCoalTracts

Not Applicable Township 139 North, Range 98 West, Section 11, Railroad tract in the SW1/4 Not Applicable Township 139 North, Range 98 West, Section 13, Tract in the W1/2SW1/4 Not Applicable Township 139 North, Range 98 West, Section 13, Tract in the W1/2SW1/4 Not Applicable Township 139 North, Range 98 West, Section 13, Tract in the NW1/4SW1/4 Not Applicable Township 139 North, Range 98 West, Section 13, Tract in the SW1/4 Not Applicable Township 139 North, Range 98 West, Section 13, Tract in the SW1/4SW1/4 Not Applicable Township 139 North, Range 98 West, Section 18, E1/2 Not Applicable Township 139 North, Range 98 West, Section 19, E1/2
Golder Associates

0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

SHSH-1001/063-2212A

Page 13 of 14

APPENDIX 1.3-2 COAL OWNERSHIP Percent of Parcel Signed Percent of Percent of 2,617.7 4,581.4 Acre Acre Mine Pit Permit Area Area Signed Signed 81.6% 84.8%

Coal Owners Within Each Title ID

Is Agreement Signed, and By Whom

Signature Page

Percent of Total Area Signed Great Northern Properties Limited Partnership C-1399824-B U.S.A C-1399824-D U.S.A C-1399826-B U.S.A Not Applicable Township 139 North, Range 98 West, Section 24, NW1/4 Not Applicable Township 139 North, Range 98 West, Section 24, SW1/4 Not Applicable Township 139 North, Range 98 West, Section 26, W1/2, N1/2NE1/4, SW1/4NE1/4, SW1/4SE1/4 Not Applicable 0% 0% 0% 0% 0% 0% 0% 0%

NA NA

C-1399835-B Great Northern Properties Limited Not Applicable 0% Partnership *Area of the parcel that is within the Permit Boundary. This is calculated using the mapped GIS area, not a boundary survey. NA = Not Applicable

Revision 1
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Golder Associates

SHSH-1001/063-2212A

Page 14 of 14

APPENDIX 1.3-3 SURFACE AND COAL LEASE AGREEMENTS Lease Name (Linked to Lease) Coal Lease and Surface Use Agreement Date Executed October 2, 2003 Property Assorted Tracts in Township 139 North, Range 98 West Signatories Assorted Cornelius Kooren and Kathleen Kooren (Property subsequently transferred to Glen Wagner) Kudrna, Kenneth D. Kuylen, Patrick and Katherine Larry R. Klein Leocadia Emmil Family Trust Delores Beaudoin and Lydia Meduna Trustees Leocadia Emmil Family Trust Delores Beaudoin and Lydia Meduna Trustees Perdaems, James D. and Rosella J.

Lease and Surface Use Agreement

September 5, 2006

Township 139 North, Range 98 West, Section 29, NE1/4

Lease and Surface Use Agreement Lease and Surface Use Agreement Lease and Surface Use Agreement

Township 139 North, Range 98 West, Section 20, SE1/4 Township 139 North, Range November 30, 2006 98 West, Section 28, NW1/4, SE1/4 Township 139 North, Range March 16, 2007 98 West, Section 33, NE1/4 November 8, 2006 Township 139 North, Range 98 West, Section 34, N1/2

Option to Purchase Agreement

August 1, 2005

Lease and Surface Use Agreement

August 29, 2006

Township 139 North, Range 98 West, Section 34 All, Section 24 NW1/4 Township 139 North, Range 98 West, Section 14, SW1/4, Section 13, Tract in the NW1/4SW1/4

Lease and Surface Use Agreement

September 5, 2006

Lease and Surface Use Agreement

February 14, 2007

Township 139 North, Range 98 West, Section 10, SW1/4 less railroad tracts, Section 14, Robert Pavel NW1/4, Section 11, SW1/4 lying south of railroad, less a tract in the SW1/4SW1/4

Revision 0

Golder Associates

SHSH-1001/063-2212A

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Great Northern Project Development L..P
601 Jefferson, Suite 3600 Houston, TX 77002 713-751-7590

CERTIFICATE OF AUTHENTICITY

STATE OF NORTH DAKOTA STARK COUNTY

I hereby certify that the copies of the instruments submitted in Sections 1.3.5 and 1.3.6 of the South Heart Coal LLC South Heart Lignite Mine permit application (Permit No. SHSH-1001) are (me and correct duplications of the original instruments that are on file in the Houston Office of South Heart Coal LLC located at 601 Jefferson Street, Suite 3600, Houston, TX 77002. a Dated the 11 day of February, 2010.

South Heart Coal LLC Great Northern Project Development LP

STATE OF NORTH DAKOTA STARK COUNTY

On this Il’ day of February, 2010, before me personally appeared Todd Joyner, known to me to be the person described in and who executed the within and foregoing instrument and acknowledged to me that he executed the same.
I

(SEAL

(
MARY EU.EN ARBUCKLE

Notary Public

/1047 C11. J. 1) 4 .2.o/2-

My Commission Expires:

MY COMMISSION IRES JULY 28, 2012

Great Northern Project Development L.P.
1022 East Divide Avenue, Suite E Bismarck, ND 58501 701-223-8783

February 26, 2010 CERTIFIED MAIL: RETURN RECEIPT REQUESTED John F. Buckman South Heart, North Dakota 58655 Dear John F. Buckman: We have previously notified you of our plans to develop the South Heart Project. This letter updates the information previously provided to you, and provides notice of our intention to apply to the State of North Dakota for a surface mining permit that will include land under your ownership. The mine will be located near South Heart and is being referred to as the South Heart Lignite Mine (SHLM). In 2008 and early 2009, the South Heart Project was planned as a coal-gasification project where the SHLM supplied coal to an adjacent synthetic natural gas (SNG) plant. In early 2009, current and expected long term natural gas prices had fallen to a point where development of the SNG concept was no longer considered economically feasible. In May 2009, the SNG concept was formally abandoned in favor of a hydrogen power project which will convert coal from the SHLM into electrical power at an integrated gasification combined cycle (IGCC) power facility. Ongoing engineering evaluations of the IGCC facility indicate that a coal production rate of 2.4 million tons per year will be required for the project.

South Heart Coal LLC (SHC), a subsidiary of Great Northern Project Development, anticipates filing a mine permit application with the North Dakota Public Service Commission in the next couple of months. The SHLM will encompass approximately 4,581 acres of land. To help you visualize the mine permit area, we’ve included a topographic map at a scale of 1 inch = 1,500 feet. This map replaces the map attached to our previously submitted letters. The map shows the proposed year-byyear mine pit progression, stockpiles, ponds, main haul roads, other mine support facilities, and other disturbance areas within the mine permit area. For planning purposes, please assume that mining or mining-related activities will occur throughout the permit area. Please review this map and note projected mining operations that will result in direct or indirect disturbance to your property. In our January 3, 2008 letter to you, we requested and received your input regarding your preference for the use of your land after mining and reclamation are complete. This information will be used to guide our reclamation planning for this mine permit. We are very excited about this important project in Stark County. At a time when energy security is important to the U.S., we hope to use North Dakota’s lignite coal to reduce the nation’s dependence on foreign energy. In addition, the South Heart Project will use state-of-the-art technology that has

Great Northern Project Development L.P.
1022 East Divide Avenue, Suite E Bismarck, ND 58501 701-223-8783

been developed and proven over the past 25 years, making it one of the cleanest coal-based plants in the world. Please contact us if you have any questions about the enclosed information. Thank you.

Sincerely,

Rich Voss Vice President, Power Development Great Northern Project Development, L.P. 701-223-8783
Attachment: Land Owner Notification Map

SENDER: COMPLETE THIS SECTION • Complete items 1, 2, and 3. Also complete item 4 if Resticted Delivery is desired. • Print your name and address on the reverse so that we can return the card to you. • Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to:

COMPLETE THIS SECTION ON DELIVERY

Sign- ture iI Agent Addressee C. Date of Delivery
ill
—

eceived by (Pfinted Name)

D. Is delivery address different fmm Item 1? 0 Yes 0 No If YES, enter delivery address below:

John F. Buckman South Heart, North Dakota 58655 3. ServIce Type Ce,tified Mail L1 Registered C Insured Mall 2. Article Number (flansfer from serilce label) PS Form U Express Mall U Return Receipt for Merhandlse C C.O.D. 0 Yes

4. Restricted Delivery? (Ext,a Fee)

7007 2680 0002 5955 9645
Domestic Return Receipt
102595-02-M-1 540

3811,

February 2004

January 3, 2008

John F. Buckman 2891 122nd Ave SW Belfield, ND 58622 Dear John F. Buckman: Recently, Great Northern Power Development announced the development of a $1.4 billion coal gasification project near South Heart. This project will use North Dakota’s abundant lignite coal to produce pipeline quality synthetic natural gas to heat more than 300,000 homes, while bringing more than 200 skilled, high-paying jobs to southwest North Dakota. This truly is an exciting time for Stark County. We’re writing to you to let you know of our plans to apply for a surface mining permit from the State of North Dakota for approximately 4,825 acres of land, some of which is under your ownership. The South Heart Project (SHP) Mine Permit Area, as we refer to it, is located in Stark County, N.D., approximately two miles southwest of South Heart. In our application, we’ll file as South Heart Coal LLC (SHC), which is a wholly owned subsidiary of Great Northern Power Development L.P. (GNPD). We plan to submit the mine permit application to the North Dakota Public Service Commission in the near future and anticipate approval of the application one year later, during the winter of 2009. Initial mining-related activities will commence fall 2011. At this time, we’d also like some feedback from you. Please tell us your preferences about the postmine uses of land owned by you that will be disturbed by mining or mining-related activities within the proposed SHP Mine Permit Area. Take a moment to complete the enclosed preference statement form and indicate your preferences. If you don’t have any changes from pre-mine land uses, please indicate that in the space provided. If no comments are indicated in the Landowner’s Preference Statement or if no response is received, then the pre-mine land use will serve as a guide during our reclamation planning. We will consider all land use change proposals and do our best to incorporate your preferences into the mine reclamation plans. Please note that due to surface water, soil, topographic and/or regulatory limitations, we may not be able to incorporate all preferences for land use changes in our plan. To help you visualize the permit area, we’ve included a topographic map at a scale of 1 inch = 1,500 feet, showing the specific locations to be affected either directly or indirectly by the proposed mining operations. The map also shows the proposed year-by-year mine pit progression, stockpiles, ponds, main haul roads, and other mine support facilities and disturbance areas within the permit area.

Please review this map and note projected mining operations that will result in disturbance to your land. In addition, please review the current or pre-mining land use acreage information shown on the enclosed preference statement and indicate any changes. We’re very excited about this important project in Stark County. At a time when energy security is important to the U.S., we’re able to use North Dakota’s lignite coal to reduce the nation’s dependence on foreign energy. In addition, the South Heart project will use state-of-the-art technology that has been developed and proven over the past 25 years, making it one of the cleanest coal-based plants in the world. We look forward to receiving your information. Your prompt attention to this matter is greatly appreciated. We ask that you please sign and date the form and return it in the enclosed selfaddressed, stamped envelope no later than February 1, 2008. Please contact us if you have any questions about the enclosed information. Thank you.

Sincerely,

Rich Voss Vice President, Power Development Great Northern Power Development, L.P. 701-223-8783

_____________________________

LANDOWNER’S POST-MINING PREFERENCE STATEMENT

2.33

Cropland Waterway Native Vegetation______________________ Native Vegetation Shelterbelt Corral/Feedlot Tame Pasture Tame Pasture Woodland
Driveway 0.09

—

Tame Pasture 1.50 0.06

0.06 0.06

Roads Surface Right-of-Way/Lane

0.37 0.61

Reservoirs Open Water
-

Wetlands

The land uses were determined through field review and analysis of aerial photographs. Please state your preference for the post-mining land uses for lands in the proposed permit area owned by you. If these are different from the pre-mining land uses, please include supporting reasons for the changes.
LA&i44Q

Q. L.’t

..LI3 .—yt.G-3

Please sign and return this form to South Heart Coal LLC, Attn: Rich Voss, 1022 East Divide Avenue, Suite E, Bismarck, ND 58501 Thank you for your cooperation. Landowner Signature Name Address
—

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Great Northern Project Development L.P.
1022 East Divide Avenue, Suite E Bismarck, ND 58501 701-223-8783

February 26, 2010 CERTIFIED MAIL: RETURN RECEIPT REQUESTED Emmil, Leocadia Family Trust Delores Baudoin, Lydia Meduna, Trustees 11435 Hwy 10 W. Dickinson, North Dakota 58601 Dear Emmil, Leocadia Family Trust (Delores Baudoin, Lydia Meduna, Trustees): We have previously notified you of our plans to develop the South Heart Project. This letter updates the information previously provided to you, and provides notice of our intention to apply to the State of North Dakota for a surface mining permit that will include land under your ownership. The mine will be located near South Heart and is being referred to as the South Heart Lignite Mine (SHLM). In 2008 and early 2009, the South Heart Project was planned as a coal-gasification project where the SHLM supplied coal to an adjacent synthetic natural gas (SNG) plant. In early 2009, current and expected long term natural gas prices had fallen to a point where development of the SNG concept was no longer considered economically feasible. In May 2009, the SNG concept was formally abandoned in favor of a hydrogen power project which will convert coal from the SHLM into electrical power at an integrated gasification combined cycle (IGCC) power facility. Ongoing engineering evaluations of the IGCC facility indicate that a coal production rate of 2.4 million tons per year will be required for the project.

Great Northern Project Development L.P.
1022 East Divide Avenue, Suite E Bismarck, ND 58501 701-223-8783

on foreign energy. In addition, the South Heart Project will use state-of-the-art technology that has been developed and proven over the past 25 years, making it one of the cleanest coal-based plants in the world. Please contact us if you have any questions about the enclosed information. Thank you.

Sincerely,

Rich Voss Vice President, Power Development Great Northern Project Development, L.P. 701-223-8783
Attachment: Land Owner Notification Map

SENDER: COMPLETE THIS SECTION Complete itrns 1, 2, and 3. Also complete Item 4 if Restricted Delivery is desired. • Print your name and address on the reverse so that we can return the card to you. • Attach this card to the back of the mailpiece, or on the front if space permIts. 1. Article Addressed to:

COMPLETE THIS SECTION ON DELIVERY

ASI. •ure

x
B.
el

o Agent
ddres

•y (P4

‘N

C. Date of Della

..Isdehvety..

If YES,

•-.fromitem1? DYes D No belàw: 0
-

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Emmil, Leocadia Family Trust Delores Baudoin, Lydia Meduna, Trustees 11435 Hwy 10 W. Dickinson, North Dakota 58601

• 3. ServIce etlfied U Registered • C Insured Mall

‘ress Mall U Return Receipt for Merchandise C C.O.D.
Qy

4. RestrictedDeilvery? (Extra Fee)

2. Article Number
(TmnsIr from seivlce label)

7007 2680 00025955 9652
DomestIc RetumReceipt,

PS Form

3811, February 2004

(

102595-02-M-1540

January 3, 2008

Leocadia Emmil Family Trust 11435 Hwy 10 Dickinson, ND 58601 Dear Leocadia Emmil Family Trust: Recently, Great Northern Power Development announced the development of a $1.4 billion coal gasification project near South Heart. This project will use North Dakota’s abundant lignite coal to produce pipeline quality synthetic natural gas to heat more than 300,000 homes, while bringing more than 200 skilled, high-paying jobs to southwest North Dakota. This truly is an exciting time for Stark County. We’re writing to you to let you know of our plans to apply for a surface mining permit from the State of North Dakota for approximately 4,825 acres of land, some of which is under your ownership. The South Heart Project (SHP) Mine Permit Area, as we refer to it, is located in Stark County, N.D., approximately two miles southwest of South Heart. In our application, we’ll file as South Heart Coal LLC (SHC), which is a wholly owned subsidiary of Great Northern Power Development L.P. (GNPD). We plan to submit the mine permit application to the North Dakota Public Service Commission in the near future and anticipate approval of the application one year later, during the winter of 2009. Initial mining-related activities will commence fall 2011. At this time, we’d also like some feedback from you. Please tell us your preferences about the postmine uses of land owned by you that will be disturbed by mining or mining-related activities within the proposed SHP Mine Permit Area. Take a moment to complete the enclosed preference statement form and indicate your preferences. If you don’t have any changes from pre-mine land uses, please indicate that in the space provided. If no comments are indicated in the Landowner’s Preference Statement or if no response is received, then the pre-mine land use will serve as a guide during our reclamation planning. We will consider all land use change proposals and do our best to incorporate your preferences into the mine reclamation plans. Please note that due to surface water, soil, topographic and/or regulatory limitations, we may not be able to incorporate all preferences for land use changes in our plan. To help you visualize the permit area, we’ve included a topographic map at a scale of 1 inch = 1,500 feet, showing the specific locations to be affected either directly or indirectly by the proposed mining operations. The map also shows the proposed year-by-year mine pit progression, stockpiles, ponds, main haul roads, and other mine support facilities and disturbance areas within the permit area.

Sincerely,

Rich Voss Vice President, Power Development Great Northern Power Development, L.P. 701-223-8783

LANDOWNER'S POST-MINING PREFERENCE STATEMENT

Subsection 3 of Section 69-05.2-09-13 of the North Dakota Administrative Code requires a surface coal mining company to obtain a preference statement from a landowner owning land located within the proposed coal mining permit area. This land use statement will be included as part of the SHP Mine Permit Application. The total lands to be included in this surface coal mining permit application are 4,825 acres. The parcel being considered on this page, of which you are the owner, totals 9.41 acres and is described as T139N R98W Section 33: W1/2, SE1/4. This parcel’s current land use is broken down as follows: Cropland _________8.33______________ Cropland Waterway _____________________ Native Vegetation______________________ Native Vegetation – Tame Pasture _________ Shelterbelt ________________________ Corral/Feedlot _____________________ Tame Pasture _________________________ Tame Pasture Woodland_____________ Driveway ________________________ Roads Surface ____________________ Right-of-Way/Lane ______1.09_______ Farmstead Yard _______________ Feed / Hay Lot ___________________ Garden _________________________ Residence ___________________ Structures ____________________ Waste Dump ____________________ Industrial/Utilities ________________ Mines __________________________ Woodland _______________________ Reservoirs - Open Water ___________ Wetlands _______________________

Please sign and return this form to South Heart Coal LLC, Attn: Rich Voss, 1022 East Divide Avenue, Suite E, Bismarck, ND 58501 Thank you for your cooperation. Landowner Signature Name Address Date

LANDOWNER'S POST-MINING PREFERENCE STATEMENT

Subsection 3 of Section 69-05.2-09-13 of the North Dakota Administrative Code requires a surface coal mining company to obtain a preference statement from a landowner owning land located within the proposed coal mining permit area. This land use statement will be included as part of the SHP Mine Permit Application. The total lands to be included in this surface coal mining permit application are 4,825 acres. The parcel being considered on this page, of which you are the owner, totals 182.45 acres and is described as T139N R98W Section 34: N1/2. This parcel’s current land use is broken down as follows: Cropland ________169.70___________ Cropland Waterway _____________________ Native Vegetation______________________ Native Vegetation – Tame Pasture _________ Shelterbelt ________0.45_____________ Corral/Feedlot _____________________ Tame Pasture _________________________ Tame Pasture Woodland_____________ Driveway ________________________ Roads Surface _________0.70________ Right-of-Way/Lane _____9.87_____ Farmstead Yard _______________ Feed / Hay Lot ___________________ Garden _________________________ Residence ___________________ Structures ____________________ Waste Dump ____________________ Industrial/Utilities ________________ Mines __________________________ Woodland _______1.71____________ Reservoirs - Open Water ___________ Wetlands _______0.01___________

Please sign and return this form to South Heart Coal LLC, Attn: Rich Voss, 1022 East Divide Avenue, Suite E, Bismarck, ND 58501 Thank you for your cooperation. Landowner Signature Name Address Date

LANDOWNER'S POST-MINING PREFERENCE STATEMENT

Subsection 3 of Section 69-05.2-09-13 of the North Dakota Administrative Code requires a surface coal mining company to obtain a preference statement from a landowner owning land located within the proposed coal mining permit area. This land use statement will be included as part of the SHP Mine Permit Application. The total lands to be included in this surface coal mining permit application are 4,825 acres. The parcel being considered on this page, of which you are the owner, totals 100.78 acres and is described as T139N R98W Section 34: S1/2. This parcel’s current land use is broken down as follows: Cropland ________99.84___________ Cropland Waterway _____________________ Native Vegetation______________________ Native Vegetation – Tame Pasture _________ Shelterbelt ________________________ Corral/Feedlot _____________________ Tame Pasture _________________________ Tame Pasture Woodland_____________ Driveway ________________________ Roads Surface ____________________ Right-of-Way/Lane _____0.94_____ Farmstead Yard _______________ Feed / Hay Lot ___________________ Garden _________________________ Residence ___________________ Structures ____________________ Waste Dump ____________________ Industrial/Utilities ________________ Mines __________________________ Woodland _______________________ Reservoirs - Open Water ___________ Wetlands _______________________

Please sign and return this form to South Heart Coal LLC, Attn: Rich Voss, 1022 East Divide Avenue, Suite E, Bismarck, ND 58501 Thank you for your cooperation. Landowner Signature Name Address Date

Great Northern Project Development L.P.
1022 East Divide Avenue, Suite E Bismarck, ND 58501 701-223-8783

February 26, 2010 CERTIFIED MAIL: RETURN RECEIPT REQUESTED Larry R. Klein 525 Weatherby Way Bismarck, North Dakota 58503-0139 Dear Larry R. Klein: We have previously notified you of our plans to develop the South Heart Project. This letter updates the information previously provided to you, and provides notice of our intention to apply to the State of North Dakota for a surface mining permit that will include land under your ownership. The mine will be located near South Heart and is being referred to as the South Heart Lignite Mine (SHLM). In 2008 and early 2009, the South Heart Project was planned as a coal-gasification project where the SHLM supplied coal to an adjacent synthetic natural gas (SNG) plant. In early 2009, current and expected long term natural gas prices had fallen to a point where development of the SNG concept was no longer considered economically feasible. In May 2009, the SNG concept was formally abandoned in favor of a hydrogen power project which will convert coal from the SHLM into electrical power at an integrated gasification combined cycle (IGCC) power facility. Ongoing engineering evaluations of the IGCC facility indicate that a coal production rate of 2.4 million tons per year will be required for the project.

Great Northern Project Development L.P.
1022 East Divide Avenue, Suite E Bismarck, ND 58501 701-223-8783

been developed and proven over the past 25 years, making it one of the cleanest coal-based plants in the world. Please contact us if you have any questions about the enclosed information. Thank you.

Sincerely,

Rich Voss Vice President, Power Development Great Northern Project Development, L.P. 701-223-8783
Attachment: Land Owner Notification Map

SENDER: COMPLETE THIS SECTION • Complete items 1, 2, and 3. Also complete item 4 If Restricted Delivery is desired. • Print your name and address on the reverse so that we can return the card to you. • Attach this card to the back of the mailpiece, or on the front if space permits.
1. Article Addressed to:

COMPLETE THIS SECTION ON DELIVERY

A. SIgnati.,
-

DAgent
D Addressee

edNTe) 9t BRece?

,of Delivery

D. Is

different from item 1? D Yes D No address below:

Larry R. Klein 525 Weatherby Way Bismarck, ND 58503-0139

3Serice Type Certified Mall C Registered. C Insured Mail

C Express Mall C Return Receipt for Merthandise C C.O.D. Q Yes

4. Restiicted Delivery? (Extra Fee)

2. Article Number (Transfer from sen’lce label)

7007 268Ipj955
Domestic Return Receipt

L1 9782
1 02595-02-M-1 540

PS Form

3811,

February 2004

January 3, 2008

Larry R. Klein 525 Weatherby Way Bismarck, ND 58503 Dear Larry R. Klein: Recently, Great Northern Power Development announced the development of a $1.4 billion coal gasification project near South Heart. This project will use North Dakota’s abundant lignite coal to produce pipeline quality synthetic natural gas to heat more than 300,000 homes, while bringing more than 200 skilled, high-paying jobs to southwest North Dakota. This truly is an exciting time for Stark County. We’re writing to you to let you know of our plans to apply for a surface mining permit from the State of North Dakota for approximately 4,825 acres of land, some of which is under your ownership. The South Heart Project (SHP) Mine Permit Area, as we refer to it, is located in Stark County, N.D., approximately two miles southwest of South Heart. In our application, we’ll file as South Heart Coal LLC (SHC), which is a wholly owned subsidiary of Great Northern Power Development L.P. (GNPD). We plan to submit the mine permit application to the North Dakota Public Service Commission in the near future and anticipate approval of the application one year later, during the winter of 2009. Initial mining-related activities will commence fall 2011. At this time, we’d also like some feedback from you. Please tell us your preferences about the postmine uses of land owned by you that will be disturbed by mining or mining-related activities within the proposed SHP Mine Permit Area. Take a moment to complete the enclosed preference statement form and indicate your preferences. If you don’t have any changes from pre-mine land uses, please indicate that in the space provided. If no comments are indicated in the Landowner’s Preference Statement or if no response is received, then the pre-mine land use will serve as a guide during our reclamation planning. We will consider all land use change proposals and do our best to incorporate your preferences into the mine reclamation plans. Please note that due to surface water, soil, topographic and/or regulatory limitations, we may not be able to incorporate all preferences for land use changes in our plan. To help you visualize the permit area, we’ve included a topographic map at a scale of 1 inch = 1,500 feet, showing the specific locations to be affected either directly or indirectly by the proposed mining operations. The map also shows the proposed year-by-year mine pit progression, stockpiles, ponds, main haul roads, and other mine support facilities and disturbance areas within the permit area.

Sincerely,

Rich Voss Vice President, Power Development Great Northern Power Development, L.P. 701-223-8783

_______Date____________ _________________________ ________________________
___________ ___________ ___________ ___________ ___________ ___________ ___________ _________ ___________ ________ ________ _____

LANDOWNER’S POST-MINING PREFERENCE STATEMENT

total lands to be included in this surface coal mining permit application are 4,825 acres.

The parcel being considered on this page, of which you are the owner, totals 15.63 acres and is described as T139N R98W Section 33: NE 1/4. This parcel’s current land use is broken down as follows: Croplan 14.90 Farmstead Yard Feed / Hay Lot Garden Residence

Cropland Waterway Native Vegetation______________________ Native Vegetation Shelterbelt
—

Tame Pasture

Structures
Waste Dump IndustriallUtilities Mines____________________ Woodland 0.09 Reservoirs Wetlands
-

Corral/Feedlot
Tame Pasture Tame Pasture Woodland__________
Driveway

Roads Surface Right-of-Way/Lane

Open Water

0.65

The land uses were determined through field review and analysis of aerial photographs. Please state your preference for the post-mining land uses for lands in the proposed permit area owned by you. If these are different from the pre-nhining land uses, please include supporting reasons for the changes.

Please sign and return this form to South Heart Coal LLC, Attn: Rich Voss, 1022 East Divide Avenue, Suite E, Bismarck, ND 58501

Thank you for your cooperatio Landowner Signa
Name Address

—

Great Northern Project Development L.P.
1022 East Divide Avenue, Suite E Bismarck, ND 58501 701-223-8783

February 26, 2010 CERTIFIED MAIL: RETURN RECEIPT REQUESTED Kenneth D. Kudrna 11961 41st Street SW South Heart, North Dakota 58655 Dear Kenneth D. Kudrna: We have previously notified you of our plans to develop the South Heart Project. This letter updates the information previously provided to you, and provides notice of our intention to apply to the State of North Dakota for a surface mining permit that will include land under your ownership. The mine will be located near South Heart and is being referred to as the South Heart Lignite Mine (SHLM). In 2008 and early 2009, the South Heart Project was planned as a coal-gasification project where the SHLM supplied coal to an adjacent synthetic natural gas (SNG) plant. In early 2009, current and expected long term natural gas prices had fallen to a point where development of the SNG concept was no longer considered economically feasible. In May 2009, the SNG concept was formally abandoned in favor of a hydrogen power project which will convert coal from the SHLM into electrical power at an integrated gasification combined cycle (IGCC) power facility. Ongoing engineering evaluations of the IGCC facility indicate that a coal production rate of 2.4 million tons per year will be required for the project.

Great Northern Project Development L.P.
1022 East Divide Avenue, Suite E Bismarck, ND 58501 701-223-8783

been developed and proven over the past 25 years, making it one of the cleanest coal-based plants in the world. Please contact us if you have any questions about the enclosed information. Thank you.

Sincerely,

Rich Voss Vice President, Power Development Great Northern Project Development, L.P. 701-223-8783
Attachment: Land Owner Notification Map

SENDER: COMPLETE THIS SECTION • Complete items 1, 2, and 3. Also complete Item 4 If Restricted Delivery Is desired. • Print your name and address on the reverse so that we can return the card to you. • Attach this card to the back of the mailpiece, or on the front If space permits. 1. ArtlcleAddressedto:

COMPLETE THIS SECTION ON DELIVERY

Ag
1k
B.!

re C Agent

JL4-z-.-—
.

by (P1nted Name)

C Addressee C. Da1of DeIivey

D. Is deltveey address different from lteni 1? C Yes C No If YES, enter dellveiy address below:

kenneth D. Kudrna 11961 41St Street SW South Heart, North Dakota 58655

3. ServIce Type
tefied Mall C Registered C Insured Mall CE,q,ressMan C Return Receipt for MerchandIse

C C.O.D. Qy

4. RestrIcted Delivery? (Exba Fee)

2. Article Number
(flwisfer from service label)

111 7OO7J2E3HOO2 5955(J676
Domestic Return Receipt
102595.02-M-1 540

PS Form

3811, Februaxy 2004

January 3, 2008

Kenneth D. Kudrna 11961 41st Street SW South Heart, ND 58655 Dear Kenneth D. Kudrna: Recently, Great Northern Power Development announced the development of a $1.4 billion coal gasification project near South Heart. This project will use North Dakota’s abundant lignite coal to produce pipeline quality synthetic natural gas to heat more than 300,000 homes, while bringing more than 200 skilled, high-paying jobs to southwest North Dakota. This truly is an exciting time for Stark County. We’re writing to you to let you know of our plans to apply for a surface mining permit from the State of North Dakota for approximately 4,825 acres of land, some of which is under your ownership. The South Heart Project (SHP) Mine Permit Area, as we refer to it, is located in Stark County, N.D., approximately two miles southwest of South Heart. In our application, we’ll file as South Heart Coal LLC (SHC), which is a wholly owned subsidiary of Great Northern Power Development L.P. (GNPD). We plan to submit the mine permit application to the North Dakota Public Service Commission in the near future and anticipate approval of the application one year later, during the winter of 2009. Initial mining-related activities will commence fall 2011. At this time, we’d also like some feedback from you. Please tell us your preferences about the postmine uses of land owned by you that will be disturbed by mining or mining-related activities within the proposed SHP Mine Permit Area. Take a moment to complete the enclosed preference statement form and indicate your preferences. If you don’t have any changes from pre-mine land uses, please indicate that in the space provided. If no comments are indicated in the Landowner’s Preference Statement or if no response is received, then the pre-mine land use will serve as a guide during our reclamation planning. We will consider all land use change proposals and do our best to incorporate your preferences into the mine reclamation plans. Please note that due to surface water, soil, topographic and/or regulatory limitations, we may not be able to incorporate all preferences for land use changes in our plan. To help you visualize the permit area, we’ve included a topographic map at a scale of 1 inch = 1,500 feet, showing the specific locations to be affected either directly or indirectly by the proposed mining operations. The map also shows the proposed year-by-year mine pit progression, stockpiles, ponds, main haul roads, and other mine support facilities and disturbance areas within the permit area.

Sincerely,

Rich Voss Vice President, Power Development Great Northern Power Development, L.P. 701-223-8783

LANDOWNER’S POST-MINING PREFERENCE STATEMENT

Native Vegetation_____________ Native Vegetation Shelterbelt Corral/Feedlot Tame Pasture
—

Tame Pasture

Tame Pasture Woodland_____________ Driveway Roads Surface Right-of-Way/Lane 0.15

Wetlands

4 Q2tt4A4.fJ

Please sign and return this form to South Heart Coal LLC, Attn: Rich Voss, 1022 East Divide Avenue, Suite E, Bismarck, ND 58501 Thank you for your cooperation. Landowner Signature Name P7H Jr Date

Address____________________

o/t

Great Northern Project Development L.P.
1022 East Divide Avenue, Suite E Bismarck, ND 58501 701-223-8783

February 26, 2010 CERTIFIED MAIL: RETURN RECEIPT REQUESTED Patrick and Katherine Kuylen 12230 40th St. SW South Heart, North Dakota 58655 Dear Patrick and Katherine Kuylen: We have previously notified you of our plans to develop the South Heart Project. This letter updates the information previously provided to you, and provides notice of our intention to apply to the State of North Dakota for a surface mining permit that will include land under your ownership. The mine will be located near South Heart and is being referred to as the South Heart Lignite Mine (SHLM). In 2008 and early 2009, the South Heart Project was planned as a coal-gasification project where the SHLM supplied coal to an adjacent synthetic natural gas (SNG) plant. In early 2009, current and expected long term natural gas prices had fallen to a point where development of the SNG concept was no longer considered economically feasible. In May 2009, the SNG concept was formally abandoned in favor of a hydrogen power project which will convert coal from the SHLM into electrical power at an integrated gasification combined cycle (IGCC) power facility. Ongoing engineering evaluations of the IGCC facility indicate that a coal production rate of 2.4 million tons per year will be required for the project.

Great Northern Project Development L.P.
1022 East Divide Avenue, Suite E Bismarck, ND 58501 701-223-8783

been developed and proven over the past 25 years, making it one of the cleanest coal-based plants in the world. Please contact us if you have any questions about the enclosed information. Thank you.

Sincerely,

Rich Voss Vice President, Power Development Great Northern Project Development, L.P. 701-223-8783
Attachment: Land Owner Notification Map

SENDER:

COMPLETE THIS SECTION

COMPLETE THIS SECTION ON DELIVERY

• Complete Items 1,2, and 3. Also complete Item 4 If •

Restricted

Delivery Is desired. address on the

Print your name

and

reverse
B. Received by (Thinted Name)

DAgent -Mdressee

so that we can return the card to you. • Attach this card to the back of the mailpiece, or on the front If space permits.

1. Article Mdressed to:

D. Is delivery address diffefant fiom Item 1? D Yes D No addISSS bOW IL

f.,

I C. Date of Deiiveiy
-

Patrick and Katherine Kuylen 12230 40th St. SW South Heart, North Dakota 58655

3•

Type

D 0 Return Receipt for Menthandise C C.O.D. 4. RestrIcted Delivery? (Extra Fee) C Yes
0 Registered C Insured Mali
,

2. Article Number (flensferfmm service Iabe9 PS Form

•

1 ‘700? 268& 0002 5955 196&3r
Domestic Retum Receipt

•

3811, February 2004

102595-o2-M-1549

January 3, 2008

Patrick and Katherine Kuylen PO Box 184 South Heart, ND 58655 Dear Patrick and Katherine Kuylen: Recently, Great Northern Power Development announced the development of a $1.4 billion coal gasification project near South Heart. This project will use North Dakota’s abundant lignite coal to produce pipeline quality synthetic natural gas to heat more than 300,000 homes, while bringing more than 200 skilled, high-paying jobs to southwest North Dakota. This truly is an exciting time for Stark County. We’re writing to you to let you know of our plans to apply for a surface mining permit from the State of North Dakota for approximately 4,825 acres of land, some of which is under your ownership. The South Heart Project (SHP) Mine Permit Area, as we refer to it, is located in Stark County, N.D., approximately two miles southwest of South Heart. In our application, we’ll file as South Heart Coal LLC (SHC), which is a wholly owned subsidiary of Great Northern Power Development L.P. (GNPD). We plan to submit the mine permit application to the North Dakota Public Service Commission in the near future and anticipate approval of the application one year later, during the winter of 2009. Initial mining-related activities will commence fall 2011. At this time, we’d also like some feedback from you. Please tell us your preferences about the postmine uses of land owned by you that will be disturbed by mining or mining-related activities within the proposed SHP Mine Permit Area. Take a moment to complete the enclosed preference statement form and indicate your preferences. If you don’t have any changes from pre-mine land uses, please indicate that in the space provided. If no comments are indicated in the Landowner’s Preference Statement or if no response is received, then the pre-mine land use will serve as a guide during our reclamation planning. We will consider all land use change proposals and do our best to incorporate your preferences into the mine reclamation plans. Please note that due to surface water, soil, topographic and/or regulatory limitations, we may not be able to incorporate all preferences for land use changes in our plan. To help you visualize the permit area, we’ve included a topographic map at a scale of 1 inch = 1,500 feet, showing the specific locations to be affected either directly or indirectly by the proposed mining operations. The map also shows the proposed year-by-year mine pit progression, stockpiles, ponds, main haul roads, and other mine support facilities and disturbance areas within the permit area.

Sincerely,

Rich Voss Vice President, Power Development Great Northern Power Development, L.P. 701-223-8783

LANDOWNER’S POST-MINING PREFERENCE STATEMENT

Cropland Waterway

Native Vegetation______________________ Native Vegetation Shelterbelt CorrallFeedlot Tame Pasture
—

Tame Pasture 0.52

Tame Pasture Woodland____________ Driveway Roads Surface Right-of-Way/Lane

Wetlands

Please sign and return this form to South Heart Coal LLC, Attn: Rich Voss, 1022 East Divide Avenue, Suite E, Bismarck, ND 58501 Thank you for your cooperation. Landowner Signature Name Address

1 / 7 0

J3oy /ii
So t7 1Y.-li4,97 4,h.

____________________ ________________

LANDOWNER’S POST-MINING PREFERENCE STATEMENT

4.31 3.41

Cropland Waterway Native Vegetation Native Vegetation Shelterbelt Corral/Feedlot Tame Pasture

Garden Residence Structures Waste Dump Industrial/Utilities Mines Woodland
-

Tame Pasture _1 5.72__ 0.93 7.15 10.73

0.05 0.37

Tame Pasture Woodland____________ Driveway Roads Surface Right-of-Way/Lane 0.97 6.52 16.10

0.19 104.15 0.41

Reservoirs Open Water Wetlands 8.72

Please sign and return this form to South Heart Coal LLC, Attn: Rich Voss, 1022 East Divide Avenue, Suite E, Bismarck, ND 58501 Thank you for your cooperation. Landowner Signature Name Address
.

(lKA.
If

Date

1 / )O 3

8o’ /

cn-

/J-ifUT

%-‘,t’

LANDOWNER’S POST-MINING PREFERENCE STATEMENT

22.56
Waterway

Farmstead Yard Feed / Hay Lot 56.46 Garden Residence Structures Waste Dump 0.41

Native Vegetation Native Vegetation Shelterbelt Corral/Feedlot Tame Pasture
—

Tame Pasture

4.14

Industrial/Utilities Mines Woodland 0.59 12.10
-

Tame Pasture Woodland_____________ Driveway Roads Surface Right-of-Way/Lane 0.03 0.02

Reservoirs Open Water Wetlands 7.87

0.39

Please sign and return this form to South Heart Coal LLC, Attn: Rich Voss, 1022 East Divide Avenue, Suite E, Bismarck, ND 58501 Thank you for your cooperation. Landowner Signature Name Address
—.
-

Date

// 7

4’v t?ô)’
/f

ur,s

M-11s12r

________________ ______________

LANDOWNER’S POST-MINING PREFERENCE STATEMENT

Cropland Waterway Native Vegetation Native Vegetation Shelterbelt Corral/Feedlot Tame Pasture 8.71

Garden Residence Structures Waste Dump Industrial/Utilities Mines Woodland

Tame Pasture

Tame Pasture Woodland___________ Driveway Roads Surface Right-of-Way/Lane 0.85 1.35

Reservoirs Open Water
-

Wetlands

Please sign and return this form to South Heart Coal LLC, Attn: Rich Voss, 1022 East Divide Avenue, Suite E, Bismarck, ND 58501 Thank you for your cooperation. Landowner Signature Name Address Date

1—17--or

PA?’
I.

Jy’it-,c /( h-Ar 1 4D -s-c

OEX

5oi-M-

Great Northern Project Development L.P.
1022 East Divide Avenue, Suite E Bismarck, ND 58501 701-223-8783

February 26, 2010 CERTIFIED MAIL: RETURN RECEIPT REQUESTED Robert F. and Brenda K. Kuylen P.O. Box 273 South Heart, North Dakota 58655 Dear Robert F. and Brenda K. Kuylen: We have previously notified you of our plans to develop the South Heart Project. This letter updates the information previously provided to you, and provides notice of our intention to apply to the State of North Dakota for a surface mining permit that will include land under your ownership. The mine will be located near South Heart and is being referred to as the South Heart Lignite Mine (SHLM). In 2008 and early 2009, the South Heart Project was planned as a coal-gasification project where the SHLM supplied coal to an adjacent synthetic natural gas (SNG) plant. In early 2009, current and expected long term natural gas prices had fallen to a point where development of the SNG concept was no longer considered economically feasible. In May 2009, the SNG concept was formally abandoned in favor of a hydrogen power project which will convert coal from the SHLM into electrical power at an integrated gasification combined cycle (IGCC) power facility. Ongoing engineering evaluations of the IGCC facility indicate that a coal production rate of 2.4 million tons per year will be required for the project.

Great Northern Project Development L.P.
1022 East Divide Avenue, Suite E Bismarck, ND 58501 701-223-8783

been developed and proven over the past 25 years, making it one of the cleanest coal-based plants in the world. Please contact us if you have any questions about the enclosed information. Thank you.

Sincerely,

Rich Voss Vice President, Power Development Great Northern Project Development, L.P. 701-223-8783
Attachment: Land Owner Notification Map

SENDER: COMPLETE THIS SECTION

COMPLETE THIS SECTION ON DELIV ERY

• Complete Items 1, 2, and 3. Also com plete Item 411 Rest,icted Delivery Is desired. • Punt your name and address on the reverse so that we can return the card to you. • Attach this card to the back of the maliplece, or on the frent If space permits.
1. ArtIcle Addressed to:

ASI9..

x-,
I B. /
.Ivedby(
,L-

C Addressee
.Name) C. Date olDellvery

afr’

D. Is delivery address different fivm Item 1? C Yes If YES, enter delivety address below C No

Robert F. and Brenda K. Kuy!en P.O. Box 273 South Heart, North Dako ta 58655

2. ArtIcle Number (rtansfer from seMce label) PS Form 3811, February 2004

3. Service Type Certifiod Mall C Express Mall C Registered C Return Receipt for Mehandlse C Insured Mall C D.O.D. 4. RestrIcted Delivery? (Exbs Fee) C Yes

7007 2680 0002 5955 9690
Domestic Retum Receipt
l02595O2-M 1540

January 3, 2008

Robert F. and Brenda K. Kuylen PO Box 273 South Heart, ND 58655 Dear Robert F. and Brenda K. Kuylen: Recently, Great Northern Power Development announced the development of a $1.4 billion coal gasification project near South Heart. This project will use North Dakota’s abundant lignite coal to produce pipeline quality synthetic natural gas to heat more than 300,000 homes, while bringing more than 200 skilled, high-paying jobs to southwest North Dakota. This truly is an exciting time for Stark County. We’re writing to you to let you know of our plans to apply for a surface mining permit from the State of North Dakota for approximately 4,825 acres of land, some of which is under your ownership. The South Heart Project (SHP) Mine Permit Area, as we refer to it, is located in Stark County, N.D., approximately two miles southwest of South Heart. In our application, we’ll file as South Heart Coal LLC (SHC), which is a wholly owned subsidiary of Great Northern Power Development L.P. (GNPD). We plan to submit the mine permit application to the North Dakota Public Service Commission in the near future and anticipate approval of the application one year later, during the winter of 2009. Initial mining-related activities will commence fall 2011. At this time, we’d also like some feedback from you. Please tell us your preferences about the postmine uses of land owned by you that will be disturbed by mining or mining-related activities within the proposed SHP Mine Permit Area. Take a moment to complete the enclosed preference statement form and indicate your preferences. If you don’t have any changes from pre-mine land uses, please indicate that in the space provided. If no comments are indicated in the Landowner’s Preference Statement or if no response is received, then the pre-mine land use will serve as a guide during our reclamation planning. We will consider all land use change proposals and do our best to incorporate your preferences into the mine reclamation plans. Please note that due to surface water, soil, topographic and/or regulatory limitations, we may not be able to incorporate all preferences for land use changes in our plan. To help you visualize the permit area, we’ve included a topographic map at a scale of 1 inch = 1,500 feet, showing the specific locations to be affected either directly or indirectly by the proposed mining operations. The map also shows the proposed year-by-year mine pit progression, stockpiles, ponds, main haul roads, and other mine support facilities and disturbance areas within the permit area.

Sincerely,

Rich Voss Vice President, Power Development Great Northern Power Development, L.P. 701-223-8783

LANDOWNER’S POST-MINING PREFERENCE STATEMENT

Cropland

Cropland Waterway Native Vegetation Native Vegetation Shelterbelt Corral/Feedlot Tame Pasture

3.74

Garden Residence Structures Waste Dump IndustriallUtilities Mines Woodland 1.10 0.03

Tame Pasture __20.85_ 5.20 11.87 22.03

Tame Pasture Woodland_________
Driveway

Roads Surface Right-of-Way/Lane

1.35 1.07

Reservoirs Open Water
-

0.46

Wetlands

3.02

/a/

c,//

‘

fe(4’.w.”-’

(/0/

/4..

Please sign and return this form to South Heart Coal LLC, Attn: Rich Voss, 1022 East Divide Avenue, Suite E, Bismarck, ND 58501 Thank you for your cooperation. Landowner Signature NamO AddresNY( Date
—

I (LO)

LANDOWNER’S POST-MINING PREFERENCE STATEMENT

217.55 8.67 58.80 Tame Pasture 0.06

Farmstead Yard Feed / Hay Lot Garden Residence Structures Waste Dump______________ Industrial/Utilities 0.08

CorraL’Feedlot_______________ Tame Pasture 6.21

Tame Pasture Woodland__________ Driveway Roads Surface Right-of-Way/Lane 2.15 2.46

Mines____________________ Woodland Reservoirs Open Water
-

0.35

Wetlands

1.37

//4,,,/,’c,

(/Op

/*/

Please sign and return this form to South Heart Coal LLC, Ann: Rich Voss, 1022 East Divide Avenue, Suite E, Bismarck, ND 58501 Thank you for your cooperation. Landowner Signature NameQ Address_____

14 1

/ct,_k&ik.
tII

Date

/ / ‘ -0
-

F-1 o&b, TO

LANDOWNER’S POST-MINING PREFERENCE STATEMENT

389.86
Waterway

Farmstead Yard Feed / Hay Lot 174.36 Garden Residence Structures Waste Dump Industrial/Utilities

4.95

Native Vegetation Native Vegetation Shelterbelt Corral/Feedlot Tame Pasture
—

Tame Pasture 2.92 0.66 46.26

0.07 0.22

0.09

Tame Pasture Woodland__________ Driveway Roads Surface Right-of-Way/Lane 0.70 0.31 19.03

Mines____________________ Woodland 1.61 0.42

Reservoirs - Open Water Wetlands 0.28

fs,Lci,

d 411 /

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Please sign and return this form to South Heart Coal LLC, Attn: Rich Voss, 1022 East Divide Avenue, Suite E, Bismarck, ND 58501 Thank you for your coope tion. Landowner Signature Name Address (no4-1i
)‘

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Great Northern Project Development L.P.
1022 East Divide Avenue, Suite E Bismarck, ND 58501 701-223-8783

February 26, 2010 CERTIFIED MAIL: RETURN RECEIPT REQUESTED Gary L. and Barbara Meduna P.O. Box 123 South Heart, North Dakota 58655 Dear Gary L. and Barbara Meduna: We have previously notified you of our plans to develop the South Heart Project. This letter updates the information previously provided to you, and provides notice of our intention to apply to the State of North Dakota for a surface mining permit that will include land under your ownership. The mine will be located near South Heart and is being referred to as the South Heart Lignite Mine (SHLM). In 2008 and early 2009, the South Heart Project was planned as a coal-gasification project where the SHLM supplied coal to an adjacent synthetic natural gas (SNG) plant. In early 2009, current and expected long term natural gas prices had fallen to a point where development of the SNG concept was no longer considered economically feasible. In May 2009, the SNG concept was formally abandoned in favor of a hydrogen power project which will convert coal from the SHLM into electrical power at an integrated gasification combined cycle (IGCC) power facility. Ongoing engineering evaluations of the IGCC facility indicate that a coal production rate of 2.4 million tons per year will be required for the project.

Great Northern Project Development L.P.
1022 East Divide Avenue, Suite E Bismarck, ND 58501 701-223-8783

been developed and proven over the past 25 years, making it one of the cleanest coal-based plants in the world. Please contact us if you have any questions about the enclosed information. Thank you.

Sincerely,

Rich Voss Vice President, Power Development Great Northern Project Development, L.P. 701-223-8783
Attachment: Land Owner Notification Map

SENDER: COMPLETE THIS SECTION • Complete items 1, 2, and 3. Also compl ete Item 4 if Restricted Delivery Is desired. S Print your name and address on the reverse so that we can return the card to you. • Attach this card to the back of the mailpi ece, or on the front if space permits. 1. Article Addressed to: A. Signature
.0 Agent t] Addressee Ic. Date of Delivery

elvec,tedJName)
ML99k4J,,I7

D. Is dery address different from Item 1? D Yes If YES, enter delivery address below: I] No

Gary L. and Barbara Meduna P.O. Box 123 South Heart, North Dakota 58655

2. Article Number (Uransfer from ser,lce label) PS Form

3. ServIce Type &rtified Mall 1] Express Mall RegIstered D Return Receipt for Merchandise D Insured Mall D C.O.D. 4. Restricted Delivery? (Extra Fee) IJ Yes

7007 2680 0002 5955 9706
DomestIc Return Receipt
102595-02-M-1540

3811, February 2004

January 3, 2008

Gary L. and Barbara Meduna PO Box 123 South Heart, ND 58655 Dear Gary L. and Barbara Meduna: Recently, Great Northern Power Development announced the development of a $1.4 billion coal gasification project near South Heart. This project will use North Dakota’s abundant lignite coal to produce pipeline quality synthetic natural gas to heat more than 300,000 homes, while bringing more than 200 skilled, high-paying jobs to southwest North Dakota. This truly is an exciting time for Stark County. We’re writing to you to let you know of our plans to apply for a surface mining permit from the State of North Dakota for approximately 4,825 acres of land, some of which is under your ownership. The South Heart Project (SHP) Mine Permit Area, as we refer to it, is located in Stark County, N.D., approximately two miles southwest of South Heart. In our application, we’ll file as South Heart Coal LLC (SHC), which is a wholly owned subsidiary of Great Northern Power Development L.P. (GNPD). We plan to submit the mine permit application to the North Dakota Public Service Commission in the near future and anticipate approval of the application one year later, during the winter of 2009. Initial mining-related activities will commence fall 2011. At this time, we’d also like some feedback from you. Please tell us your preferences about the postmine uses of land owned by you that will be disturbed by mining or mining-related activities within the proposed SHP Mine Permit Area. Take a moment to complete the enclosed preference statement form and indicate your preferences. If you don’t have any changes from pre-mine land uses, please indicate that in the space provided. If no comments are indicated in the Landowner’s Preference Statement or if no response is received, then the pre-mine land use will serve as a guide during our reclamation planning. We will consider all land use change proposals and do our best to incorporate your preferences into the mine reclamation plans. Please note that due to surface water, soil, topographic and/or regulatory limitations, we may not be able to incorporate all preferences for land use changes in our plan. To help you visualize the permit area, we’ve included a topographic map at a scale of 1 inch = 1,500 feet, showing the specific locations to be affected either directly or indirectly by the proposed mining operations. The map also shows the proposed year-by-year mine pit progression, stockpiles, ponds, main haul roads, and other mine support facilities and disturbance areas within the permit area.

Sincerely,

Rich Voss Vice President, Power Development Great Northern Power Development, L.P. 701-223-8783

______________________ ___________________ ______________________ ___________________ ___________________ _______________ __________________

LANDOWNER’S POST-MINING PREFERENCE STATEMENT Subsection 3 of Section 69-05.2-09-13 of the North Dakota Administrative Code requires a surface coal mining company to obtain a preference statement from a landowner owning land located within the proposed coal mining permit area. This land use statement will be included as part of the SHP Mine Permit Application. The total lands to be included in this surface coal mining permit application are 4,825 acres. The parcel being considered on this page, of which you are the owner, totals 43.01 acres and is described as T139N R98W Section 9: SW1/4. This parcel’s current land use is broken down as follows: Cropland Cropland Waterway Native Vegetation Native Vegetation Shelterbelt Corral/Feedlot Tame Pasture Tame Pasture Woodland
Driveway

29.36

Farmstead Yard Feed I Hay Lot 7.98 Garden Residence Structures Waste Dump Industrial/Utilities 2.24 Mines Woodland Reservoirs Open Water
-

Tame Pasture

0.01

Roads Surface Right-of-Way/Lane

Wetlands

3.42

C...

Please sign and return this form to South Heart Coal LLC, Attn: Rich Voss, 1022 East Divide Avenue, Suite E, Bismarck, ND 58501 Thank you for your cooperation. Landowner Signature Name Address

4
/

Date

/ /

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Great Northern Project Development L.P.
1022 East Divide Avenue, Suite E Bismarck, ND 58501 701-223-8783

February 26, 2010 CERTIFIED MAIL: RETURN RECEIPT REQUESTED Robert B. Pavel 3113 Daytona Dr. Bismarck, North Dakota 58503-0139 Dear Robert B. Pavel: We have previously notified you of our plans to develop the South Heart Project. This letter updates the information previously provided to you, and provides notice of our intention to apply to the State of North Dakota for a surface mining permit that will include land under your ownership. The mine will be located near South Heart and is being referred to as the South Heart Lignite Mine (SHLM). In 2008 and early 2009, the South Heart Project was planned as a coal-gasification project where the SHLM supplied coal to an adjacent synthetic natural gas (SNG) plant. In early 2009, current and expected long term natural gas prices had fallen to a point where development of the SNG concept was no longer considered economically feasible. In May 2009, the SNG concept was formally abandoned in favor of a hydrogen power project which will convert coal from the SHLM into electrical power at an integrated gasification combined cycle (IGCC) power facility. Ongoing engineering evaluations of the IGCC facility indicate that a coal production rate of 2.4 million tons per year will be required for the project.

Great Northern Project Development L.P.
1022 East Divide Avenue, Suite E Bismarck, ND 58501 701-223-8783

been developed and proven over the past 25 years, making it one of the cleanest coal-based plants in the world. Please contact us if you have any questions about the enclosed information. Thank you.

Sincerely,

Rich Voss Vice President, Power Development Great Northern Project Development, L.P. 701-223-8783
Attachment: Land Owner Notification Map

SENDER: COMPLETE THIS SECTION • Completeitemsl,2;arid3.Alsocomplete Item 4 If Restiicted. Delivery is desh’ed. • Print your name and address on the reverse so that we can rettim the card to•you. • Attach this card to the back of the mailpiece, or on the fmnt if space permits.
-

COMPLETE THIS SECTION ON DELIVERY

A. S.i

x
7
•ac by

D Agent
ddressee

C. Date of Delivery

1. ArtIcle Addressed to:

1’

— 1 0. Is delivery addmss different from item 1? CI Yes CI No If YES, enter delivery addressbelow:

Robert B. Pavel 3113 Daytona Dr. Bismarck, North Dakota 58503-0139
3. ServIce Type

%Certified Mall

C Registered
CI Insured Mall

CI Express Mail C Return Receipt for Merohandise
C O.O.D. CI Yes

4. RestrIcted Delivery? (Extra Fee) 2.ArticfeNumber (1?ansfer from seMce label) PS Form

7007 1490 0001 9830 2786
Domestic Return Receipt
102595-02-M-154c

3811, February 2004

January 3, 2008

Robert B. Pavel 1376 High Street W Dickinson, ND 58601 Dear Robert B. Pavel: Recently, Great Northern Power Development announced the development of a $1.4 billion coal gasification project near South Heart. This project will use North Dakota’s abundant lignite coal to produce pipeline quality synthetic natural gas to heat more than 300,000 homes, while bringing more than 200 skilled, high-paying jobs to southwest North Dakota. This truly is an exciting time for Stark County. We’re writing to you to let you know of our plans to apply for a surface mining permit from the State of North Dakota for approximately 4,825 acres of land, some of which is under your ownership. The South Heart Project (SHP) Mine Permit Area, as we refer to it, is located in Stark County, N.D., approximately two miles southwest of South Heart. In our application, we’ll file as South Heart Coal LLC (SHC), which is a wholly owned subsidiary of Great Northern Power Development L.P. (GNPD). We plan to submit the mine permit application to the North Dakota Public Service Commission in the near future and anticipate approval of the application one year later, during the winter of 2009. Initial mining-related activities will commence fall 2011. At this time, we’d also like some feedback from you. Please tell us your preferences about the postmine uses of land owned by you that will be disturbed by mining or mining-related activities within the proposed SHP Mine Permit Area. Take a moment to complete the enclosed preference statement form and indicate your preferences. If you don’t have any changes from pre-mine land uses, please indicate that in the space provided. If no comments are indicated in the Landowner’s Preference Statement or if no response is received, then the pre-mine land use will serve as a guide during our reclamation planning. We will consider all land use change proposals and do our best to incorporate your preferences into the mine reclamation plans. Please note that due to surface water, soil, topographic and/or regulatory limitations, we may not be able to incorporate all preferences for land use changes in our plan. To help you visualize the permit area, we’ve included a topographic map at a scale of 1 inch = 1,500 feet, showing the specific locations to be affected either directly or indirectly by the proposed mining operations. The map also shows the proposed year-by-year mine pit progression, stockpiles, ponds, main haul roads, and other mine support facilities and disturbance areas within the permit area.

Sincerely,

Rich Voss Vice President, Power Development Great Northern Power Development, L.P. 701-223-8783

LANDOWNER’S POST-MINING PREFERENCE STATEMENT

Farmstead Yard Feed / Hay Lot Garden Residence• Structures Waste Dump
-

Native Vegetation_________________ Native Vegetation Shelterbelt Corral/Feedlot Tame Pasture 0.90
—

Tame Pasture

Industrial/Utilities Mines Woodland Reservoirs Open Water
-

Tame Pasture Woodland____________ Driveway Roads Surface Right-of-Way/Lane 1.78

Wetlands

I-

Please sign and return this form to South Heart Coal LLC, Attn: Rich Voss, 1022 East Divide Avenue, Suite E, Bismarck, ND 58501 Thank you for your Landowner Signature Name Address

3//s
F

2u,1

c24’

LANDOWNER’S POST-MINING PREFERENCE STATEMENT

28.79

Farmstead Yard Feed / Hay Lot Garden Residence Structures Waste Dump Industrial/Utilities Mines Woodland

3.23 0.01

Tame Pasture 1.20

Tame Pasture Woodland____________ Driveway Roads Surface Right-of-Way/Lane 2.12 4.37

Reservoirs Open Water
-

Wetlands

5’W’

1L2hed

,L)(

rPIILcZ

Please sign and return this form to South Heart Coal LLC, Ann: Rich Voss, 1022 East Divide Avenue, Suite E, Bismarck, ND 58501 Thank you for your cooper Landowner Signature Name Address Date //1r

3//3
3

Great Northern Project Development L.P.
1022 East Divide Avenue, Suite E Bismarck, ND 58501 701-223-8783

February 26, 2010 CERTIFIED MAIL: RETURN RECEIPT REQUESTED James D. and Rosella J. Perdaems P.O. Box 45 South Heart, North Dakota 58655 Dear James D. and Rosella J. Perdaems: We have previously notified you of our plans to develop the South Heart Project. This letter updates the information previously provided to you, and provides notice of our intention to apply to the State of North Dakota for a surface mining permit that will include land under your ownership. The mine will be located near South Heart and is being referred to as the South Heart Lignite Mine (SHLM). In 2008 and early 2009, the South Heart Project was planned as a coal-gasification project where the SHLM supplied coal to an adjacent synthetic natural gas (SNG) plant. In early 2009, current and expected long term natural gas prices had fallen to a point where development of the SNG concept was no longer considered economically feasible. In May 2009, the SNG concept was formally abandoned in favor of a hydrogen power project which will convert coal from the SHLM into electrical power at an integrated gasification combined cycle (IGCC) power facility. Ongoing engineering evaluations of the IGCC facility indicate that a coal production rate of 2.4 million tons per year will be required for the project.

Great Northern Project Development L.P.
1022 East Divide Avenue, Suite E Bismarck, ND 58501 701-223-8783

been developed and proven over the past 25 years, making it one of the cleanest coal-based plants in the world. Please contact us if you have any questions about the enclosed information. Thank you.

Sincerely,

Rich Voss Vice President, Power Development Great Northern Project Development, L.P. 701-223-8783
Attachment: Land Owner Notification Map

ENDER: COMPLETE THIS SECTION • Complete items 1 2 and 3 Also complet’e Item 4 if Restncted Delivery is desired • Print your name and address on the reverse so that we can return the card to you. • Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to:

COMPLETE THIS SECTION ON DELIVERY
-

/ B. eived by (Printed Name) 4

‘

D Agent D Addressee C. Date of Delivery

-“‘

)

, ‘‘

D. Is deilvery address different from item 1? CI Yes CI No If YES, enter delivery address below:

James D. and Rosella J. Perdaems P.O. Box 45 South Heart, North Dakota 58655

3. SVlC6 Type . Gertlifad Mail C Registered C Insured Mall

C Express Mall C Return ReceIpt for Merchandise CI C.O.D.

4. Restricted Delivery? (Extra Fee)

C Yes

2.MlcleNumber

7007 2680 0002 5955 9720
Domestic Return Receipt
102595-02-M-1 540

PS Form

3811, February 2004

January 3, 2008

James D. and Rosella J. Perdaems PO Box 45 South Heart, ND 58655 Dear James D. and Rosella J. Perdaems: Recently, Great Northern Power Development announced the development of a $1.4 billion coal gasification project near South Heart. This project will use North Dakota’s abundant lignite coal to produce pipeline quality synthetic natural gas to heat more than 300,000 homes, while bringing more than 200 skilled, high-paying jobs to southwest North Dakota. This truly is an exciting time for Stark County. We’re writing to you to let you know of our plans to apply for a surface mining permit from the State of North Dakota for approximately 4,825 acres of land, some of which is under your ownership. The South Heart Project (SHP) Mine Permit Area, as we refer to it, is located in Stark County, N.D., approximately two miles southwest of South Heart. In our application, we’ll file as South Heart Coal LLC (SHC), which is a wholly owned subsidiary of Great Northern Power Development L.P. (GNPD). We plan to submit the mine permit application to the North Dakota Public Service Commission in the near future and anticipate approval of the application one year later, during the winter of 2009. Initial mining-related activities will commence fall 2011. At this time, we’d also like some feedback from you. Please tell us your preferences about the postmine uses of land owned by you that will be disturbed by mining or mining-related activities within the proposed SHP Mine Permit Area. Take a moment to complete the enclosed preference statement form and indicate your preferences. If you don’t have any changes from pre-mine land uses, please indicate that in the space provided. If no comments are indicated in the Landowner’s Preference Statement or if no response is received, then the pre-mine land use will serve as a guide during our reclamation planning. We will consider all land use change proposals and do our best to incorporate your preferences into the mine reclamation plans. Please note that due to surface water, soil, topographic and/or regulatory limitations, we may not be able to incorporate all preferences for land use changes in our plan. To help you visualize the permit area, we’ve included a topographic map at a scale of 1 inch = 1,500 feet, showing the specific locations to be affected either directly or indirectly by the proposed mining operations. The map also shows the proposed year-by-year mine pit progression, stockpiles, ponds, main haul roads, and other mine support facilities and disturbance areas within the permit area.

Sincerely,

Rich Voss Vice President, Power Development Great Northern Power Development, L.P. 701-223-8783

LANDOWNER’S POST-MINING PREFERENCE STATEMENT

29.95

Farmstead Yard Feed / Hay Lot 1.36 Garden Residence Structures Waste Dump

0.24

Native Vegetation Native Vegetation Shelterbelt Corral/Feedlot Tame Pasture
—

Tame Pasture _3.48___ 0.06

25.92

Industrial/Utilities Mines Woodland 17.00
-

Tame Pasture Woodland____________
Driveway

Roads Surface Right-of-Way/Lane

0.02 0.46

Reservoirs Open Water Wetlands 2.29

Please sign and return this form to South Heart Coal LLC, AUn: Rich Voss, 1022 East Divide Avenue, Suite E, Bismarck, ND 58501 Thank you for your c Landowner Signature Name Address pe tion. Date

1 II-

‘

l I LI 4’e S J cdii 1\-ert pjO

___________________________

LANDOWNER’S POST-MINING PREFERENCE STATEMENT

Cropland Waterway Native Vegetation Native Vegetation Shelterbelt Corral/Feedlot Tame Pasture 9.75

0.06

Garden Residence• Structures Waste Dump Industrial/Utilities Mines Woodland 22.78
-

Tame Pasture

0.66

Tame Pasture Woodland___________ Driveway Roads Surface Right-of-Way/Lane 2.33 4.59

Reservoirs Open Water Wetlands 2.15

0.15

Please sign and return this form to South Heart Coal LLC, Attn: Rich Voss, 1022 East Divide Avenue, Suite E, Bismarck, ND 58501 Thank you for your co Landowner Signature Name Address

(1z/frlM (jAzo 1/i flr’irc Pio 4,t4c.
—

Date

c29

1 3c

I 2Z

Ave

1 ii 4 c -i--

SW ‘JO

LANDOWNER’S POST-MINING PREFERENCE STATEMENT

Farmstead Yard Feed / Hay Lot Garden Residence Structures Waste Dump Industrial/Utilities Mines Woodland
-

3.08 0.85 0.11 0.06 0.58

Cropland Waterway Native Vegetation Native Vegetation Shelterbelt Corral/Feedlot Tame Pasture

Tame Pasture _1 .64_ 5.78 10.63 58.54

0.19 0.49 46.92 1.45 9.29

Tame Pasture Woodland____________ Driveway Roads Surface Right-of-Way/Lane 3.12 5.28 26.88

Reservoirs Open Water Wetlands

Please sign and return this form to South Heart Coal LLC, Attn: Rich Voss, 1022 East Divide Avenue, Suite E, Bismarck, ND 58501

Thank you for your
Landowner Signature Name Address Date

Ji
II
12

fOAEMS. J c1

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SS?51•l’

Great Northern Project Development L.P.
1022 East Divide Avenue, Suite E Bismarck, ND 58501 701-223-8783

February 26, 2010 CERTIFIED MAIL: RETURN RECEIPT REQUESTED Jerry F. and Sandra M. Perdaems P.O. Box 45 South Heart, North Dakota 58655 Dear Jerry F. and Sandra M. Perdaems: We have previously notified you of our plans to develop the South Heart Project. This letter updates the information previously provided to you, and provides notice of our intention to apply to the State of North Dakota for a surface mining permit that will include land under your ownership. The mine will be located near South Heart and is being referred to as the South Heart Lignite Mine (SHLM). In 2008 and early 2009, the South Heart Project was planned as a coal-gasification project where the SHLM supplied coal to an adjacent synthetic natural gas (SNG) plant. In early 2009, current and expected long term natural gas prices had fallen to a point where development of the SNG concept was no longer considered economically feasible. In May 2009, the SNG concept was formally abandoned in favor of a hydrogen power project which will convert coal from the SHLM into electrical power at an integrated gasification combined cycle (IGCC) power facility. Ongoing engineering evaluations of the IGCC facility indicate that a coal production rate of 2.4 million tons per year will be required for the project.

Great Northern Project Development L.P.
1022 East Divide Avenue, Suite E Bismarck, ND 58501 701-223-8783

been developed and proven over the past 25 years, making it one of the cleanest coal-based plants in the world. Please contact us if you have any questions about the enclosed information. Thank you.

Sincerely,

Rich Voss Vice President, Power Development Great Northern Project Development, L.P. 701-223-8783
Attachment: Land Owner Notification Map

SENDER: COMPLETE THIS SECTION • Complete items 1,2, and 3. Also complete item 4 If Restricted Delivery Is desired. I Print your name and address on the reverse so that we can return the card to you. • Attach this card to the back of the mailpiece, or on the front if space permits.
1. Article Addressed to:

COMPLETE THIS SECTION ON DELIVERY

D Agent C Addressee B. Received by (Printed Name)

’s 11 Ji, vô-’n

D. is delivery address different from item 1? C Yes If YES, enter delivery address below: C No

Ic.

Date of Delivery

Jerry F. and Sandra M. Perdaems P.O. Box 45 South Heart, North Dakota 58655

Service Type EfOertified Mall Cl Express Mall Cl Registered C Return Receipt for Mershandlse 0 Insured Mall Cl C.O.D. 4. Restricted Delivery? (Extra Fee) C Yes

2. Article Number (Transfer from seMce label)

7007 2680 0002 5955 9737
DomestIc Return Receipt 102595-02-M-1 540

PS Form

3811,

February 2004

January 3, 2008

Jerry F. and Sandra M. Perdaems PO Box 45 South Heart, ND 58655 Dear Jerry F. and Sandra M. Perdaems: Recently, Great Northern Power Development announced the development of a $1.4 billion coal gasification project near South Heart. This project will use North Dakota’s abundant lignite coal to produce pipeline quality synthetic natural gas to heat more than 300,000 homes, while bringing more than 200 skilled, high-paying jobs to southwest North Dakota. This truly is an exciting time for Stark County. We’re writing to you to let you know of our plans to apply for a surface mining permit from the State of North Dakota for approximately 4,825 acres of land, some of which is under your ownership. The South Heart Project (SHP) Mine Permit Area, as we refer to it, is located in Stark County, N.D., approximately two miles southwest of South Heart. In our application, we’ll file as South Heart Coal LLC (SHC), which is a wholly owned subsidiary of Great Northern Power Development L.P. (GNPD). We plan to submit the mine permit application to the North Dakota Public Service Commission in the near future and anticipate approval of the application one year later, during the winter of 2009. Initial mining-related activities will commence fall 2011. At this time, we’d also like some feedback from you. Please tell us your preferences about the postmine uses of land owned by you that will be disturbed by mining or mining-related activities within the proposed SHP Mine Permit Area. Take a moment to complete the enclosed preference statement form and indicate your preferences. If you don’t have any changes from pre-mine land uses, please indicate that in the space provided. If no comments are indicated in the Landowner’s Preference Statement or if no response is received, then the pre-mine land use will serve as a guide during our reclamation planning. We will consider all land use change proposals and do our best to incorporate your preferences into the mine reclamation plans. Please note that due to surface water, soil, topographic and/or regulatory limitations, we may not be able to incorporate all preferences for land use changes in our plan. To help you visualize the permit area, we’ve included a topographic map at a scale of 1 inch = 1,500 feet, showing the specific locations to be affected either directly or indirectly by the proposed mining operations. The map also shows the proposed year-by-year mine pit progression, stockpiles, ponds, main haul roads, and other mine support facilities and disturbance areas within the permit area.

Sincerely,

Rich Voss Vice President, Power Development Great Northern Power Development, L.P. 701-223-8783

____________________ _________________ ___________ _________________ _______________________ _______________________

_________0.89.

LANDOWNER’S POST-MINING PREFERENCE STATEMENT Subsection 3 of Section 69-05.2-09-13 of the North Dakota Administrative Code requires a surface coal mining company to obtain a preference statement from a landowner owning land located within the proposed coal mining permit area. This land use statement will be included as part of the SHP Mine Permit Application. The total lands to be included in this surface coal mining permit application are 4,825 acres. The parcel being considered on this page, of which you are the owner, totals 5.74 acres and is described as T139N R98W Section 22: Tract in the N1/2SE1/4. This parcel’s current land use is broken down as follows: Cropland Cropland Waterway Native Vegetation__________________ Native Vegetation Shelterbelt Corral/Feedlot Tame Pasture Tame Pasture Woodland_________
Driveway

1.04

Farmstead Yard Feed / Hay Lot Garden Residence Structures Waste Dump Industrial/Utilities Mines_________________ Woodland
-

—

Tame Pasture

3.32

Roads Surface Right-of-Way/Lane

Reservoirs Open Water Wetlands 0.49

Zui&F
--L4.Q

—(I. J

vJ L.J

‘tL

Please sign and return this form to South Heart Coal LLC, Attn: Rich Voss, 1022 East Divide Avenue, Suite E, Bismarck, ND 58501 Thank you for your cooperation. Landowner Signature Name Address
.

Date /

—

t 47 ç,

Great Northern Project Development L.P.
1022 East Divide Avenue, Suite E Bismarck, ND 58501 701-223-8783

February 26, 2010 CERTIFIED MAIL: RETURN RECEIPT REQUESTED PHP, LLP 965 11th Ave. W. Dickinson, North Dakota 58601 Dear PHP, LLP : We have previously notified you of our plans to develop the South Heart Project. This letter updates the information previously provided to you, and provides notice of our intention to apply to the State of North Dakota for a surface mining permit that will include land under your ownership. The mine will be located near South Heart and is being referred to as the South Heart Lignite Mine (SHLM). In 2008 and early 2009, the South Heart Project was planned as a coal-gasification project where the SHLM supplied coal to an adjacent synthetic natural gas (SNG) plant. In early 2009, current and expected long term natural gas prices had fallen to a point where development of the SNG concept was no longer considered economically feasible. In May 2009, the SNG concept was formally abandoned in favor of a hydrogen power project which will convert coal from the SHLM into electrical power at an integrated gasification combined cycle (IGCC) power facility. Ongoing engineering evaluations of the IGCC facility indicate that a coal production rate of 2.4 million tons per year will be required for the project.

Great Northern Project Development L.P.
1022 East Divide Avenue, Suite E Bismarck, ND 58501 701-223-8783

been developed and proven over the past 25 years, making it one of the cleanest coal-based plants in the world. Please contact us if you have any questions about the enclosed information. Thank you.

Sincerely,

Rich Voss Vice President, Power Development Great Northern Project Development, L.P. 701-223-8783
Attachment: Land Owner Notification Map

SENDER: COMPLE TE THIS SECTIO N • Complete items 1, 2, and 3. Also comple te Item 4 if Restricted i)e livery is desired. • Print your nam e and address on the reverse so that we can ret • Attach this card urn the card to you. to the back of the mailp iece, or on the front if space permits.
1. Article Addressed to:

COMPLETE THIS SEC TION ON DELIVERY

A. Signature

A’
e)

B. Received by (Printed Nam

4ddresse

e C. Date of Delivery

D. Is delivery address diff erent from Item 1? II Yes if YES, enter delivery add ress below: lI No

PHP, LL.P 965 11th Ave. W. Dic

kinson, No rth Dakot

a 58601

2. ArtIcle Number (Transfor from service labe

3. Service Type CertIfied Mail l Exp reseMall Registered El Return Receipt for Me rohandise !l insured Mall El co.D. 4. RestrIcted Delivery? (Extra Fee) Qy

Form 3811, February 200 4

7007 2680 0002 5955 9744
Domestic Return ReceIp t
102595-02-M-1 540

January 3, 2008

Mary Louise Peters, et. Al 965 11th Avenue W Dickinson, ND 58601 Dear Mary Louise Peters, et. Al: Recently, Great Northern Power Development announced the development of a $1.4 billion coal gasification project near South Heart. This project will use North Dakota’s abundant lignite coal to produce pipeline quality synthetic natural gas to heat more than 300,000 homes, while bringing more than 200 skilled, high-paying jobs to southwest North Dakota. This truly is an exciting time for Stark County. We’re writing to you to let you know of our plans to apply for a surface mining permit from the State of North Dakota for approximately 4,825 acres of land, some of which is under your ownership. The South Heart Project (SHP) Mine Permit Area, as we refer to it, is located in Stark County, N.D., approximately two miles southwest of South Heart. In our application, we’ll file as South Heart Coal LLC (SHC), which is a wholly owned subsidiary of Great Northern Power Development L.P. (GNPD). We plan to submit the mine permit application to the North Dakota Public Service Commission in the near future and anticipate approval of the application one year later, during the winter of 2009. Initial mining-related activities will commence fall 2011. At this time, we’d also like some feedback from you. Please tell us your preferences about the postmine uses of land owned by you that will be disturbed by mining or mining-related activities within the proposed SHP Mine Permit Area. Take a moment to complete the enclosed preference statement form and indicate your preferences. If you don’t have any changes from pre-mine land uses, please indicate that in the space provided. If no comments are indicated in the Landowner’s Preference Statement or if no response is received, then the pre-mine land use will serve as a guide during our reclamation planning. We will consider all land use change proposals and do our best to incorporate your preferences into the mine reclamation plans. Please note that due to surface water, soil, topographic and/or regulatory limitations, we may not be able to incorporate all preferences for land use changes in our plan. To help you visualize the permit area, we’ve included a topographic map at a scale of 1 inch = 1,500 feet, showing the specific locations to be affected either directly or indirectly by the proposed mining operations. The map also shows the proposed year-by-year mine pit progression, stockpiles, ponds, main haul roads, and other mine support facilities and disturbance areas within the permit area.

Sincerely,

Rich Voss Vice President, Power Development Great Northern Power Development, L.P. 701-223-8783

LANDOWNER’S POST-MINING PREFERENCE STATEMENT

part

The parcel being considered on this page, of which you are the owner, totals 636.06 acres and is described as T139N R98W Section 15: All less a tract in the SE1/4SE1/4. This parcel’s current land use is broken down as follows: Cropland Cropland Waterway Native Vegetation____________________ Native Vegetation Shelterbelt Corral/Feedlot Tame Pasture Tame Pasture Woodland Driveway Roads Surface Right-of-Way/Lane 2.59 9.87 0.04 25.70 Tame Pasture 4.00 591.20 Farmstead Yard Feed Hay Lot Garden Residence Structures Waste Dump Industrial/Utilities Mines Woodland Reservoirs Open Water
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Please sign and return this form to South Heart Coal LLC, Attn: Rich Voss, 1022 East Divide Avenue, Suite E, Bismarck, ND 58501 Thank you for your cooperation. Landowner Signature Name Address

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_______________________ _______________________

LANDOWNER’S POST-MINING PREFERENCE STATEMENT

355.58 3.34 15.26 Tame Pasture 2.24

Farmstead Yard Feed Hay Lot Garden Residence Structures 0.53

0.16 0.19 18.70

Waste Dump Industrial/Utilities Mines Woodland 2.78 0.88 0.99

Roads Surface Right-of-Way/Lane

1.26 0.99

Reservoirs - Open Water Wetlands 4.98

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Please sign and return this form to South Heart Coal LLC, Attn: Rich Voss, 1022 East Divide Avenue, Suite E, Bismarck, ND 58501 Thank you for your cooperation.
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Great Northern Project Development L.P.
1022 East Divide Avenue, Suite E Bismarck, ND 58501 701-223-8783

February 26, 2010 CERTIFIED MAIL: RETURN RECEIPT REQUESTED Glen R. Wagner P.O. Box 245 South Heart, North Dakota 58655 Dear Glen R. Wagner: We have previously notified you of our plans to develop the South Heart Project. This letter updates the information previously provided to you, and provides notice of our intention to apply to the State of North Dakota for a surface mining permit that will include land under your ownership. The mine will be located near South Heart and is being referred to as the South Heart Lignite Mine (SHLM). In 2008 and early 2009, the South Heart Project was planned as a coal-gasification project where the SHLM supplied coal to an adjacent synthetic natural gas (SNG) plant. In early 2009, current and expected long term natural gas prices had fallen to a point where development of the SNG concept was no longer considered economically feasible. In May 2009, the SNG concept was formally abandoned in favor of a hydrogen power project which will convert coal from the SHLM into electrical power at an integrated gasification combined cycle (IGCC) power facility. Ongoing engineering evaluations of the IGCC facility indicate that a coal production rate of 2.4 million tons per year will be required for the project.

Great Northern Project Development L.P.
1022 East Divide Avenue, Suite E Bismarck, ND 58501 701-223-8783

been developed and proven over the past 25 years, making it one of the cleanest coal-based plants in the world. Please contact us if you have any questions about the enclosed information. Thank you.

Sincerely,

Rich Voss Vice President, Power Development Great Northern Project Development, L.P. 701-223-8783
Attachment: Land Owner Notification Map

SENDER: COMPLETE THIS SECTIO
V V

COMPLETE THIS SECTION ON DELIV ERY
A.Si..ature

Item 4 if Restriàted Delivery is desired. • S’our name and address on the reve rse so that we can return the card to you. • Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to:

I• Complete itenis 1, 2, and 3. Also complete

X
‘

Cj
‘

B. Received by (Printed Name)

0 Agent jj Addressee C. Date of Delivery

D. Is delivery address rent fmm item 1? 0 Yes If YES, enter delivery address below: 0 No

Glen R. Wagner P.O. Box 245 South Heart, North Dakota 58655

2. Article Number (Transfer from ser.’lce label) PS Form

3. ServIce Type V Certified Mall C Express Mall O RegIstered C Return Receipt for Merchandise O Insured Mail C C.O.D. 4. RestrIcted Delivery? (Extra Fee) Yes
V

7007 2680 0002 5955 9751
Domestic Return Receipt
V

3811, February 2004

102595-02-Mi 540

February 11, 2008

Glen Wagner nd 4024 122 Ave SW South Heart, ND 58655 Dear Glen Wagner: Recently, Great Northern Power Development announced the development of a $1.4 billion coal gasification project near South Heart. This project will use North Dakota’s abundant lignite coal to produce pipeline quality synthetic natural gas to heat more than 300,000 homes, while bringing more than 200 skilled, high-paying jobs to southwest North Dakota. This truly is an exciting time for Stark County. We’re writing to you to let you know of our plans to apply for a surface mining permit from the State of North Dakota for approximately 4,825 acres of land, some of which is under your ownership. The South Heart Project (SHP) Mine Permit Area, as we refer to it, is located in Stark County, N.D., approximately two miles southwest of South Heart. In our application, we’ll file as South Heart Coal LLC (SHC), which is a wholly owned subsidiary of Great Northern Power Development L.P. (GNPD). We plan to submit the mine permit application to the North Dakota Public Service Commission in the near future and anticipate approval of the application one year later, during the winter of 2009. Initial mining-related activities will commence fall 2011. At this time, we’d also like some feedback from you. Please tell us your preferences about the postmine uses of land owned by you that will be disturbed by mining or mining-related activities within the proposed SHP Mine Permit Area. Take a moment to complete the enclosed preference statement form and indicate your preferences. If you don’t have any changes from pre-mine land uses, please indicate that in the space provided. If no comments are indicated in the Landowner’s Preference Statement or if no response is received, then the pre-mine land use will serve as a guide during our reclamation planning. We will consider all land use change proposals and do our best to incorporate your preferences into the mine reclamation plans. Please note that due to surface water, soil, topographic and/or regulatory limitations, we may not be able to incorporate all preferences for land use changes in our plan. To help you visualize the permit area, we’ve included a topographic map at a scale of 1 inch = 1,500 feet, showing the specific locations to be affected either directly or indirectly by the proposed mining operations. The map also shows the proposed year-by-year mine pit progression, stockpiles, ponds, main haul roads, and other mine support facilities and disturbance areas within the permit area.

Great Northern Power Development

1022 East Divide Avenue. Suite £

Bismarck, ND 58501

701 223 8783

Please review this map and note projected mining operations that will result in disturbance to your land. In addition, please review the current or pre-mining land use acreage infonnation shown on the enclosed preference statement and indicate any changes. We’re very excited about this important project in Stark County. At a time when energy security is important to the U.S., we’re able to use North Dakota’s lignite coal to reduce the nation’s dependence on foreign energy. In addition, the South Heart project will use state-of-the-art technology that has been developed and proven over the past 25 years, making it one of the cleanest coal-based plants in the world. We look forward to receiving your information. Your prompt attention to this matter is greatly appreciated. We ask that you please sign and date the form and return it in the enclosed self addressed, stamped envelope no later than February 1, 2008. Please contact us if you have any questions about the enclosed information. Thank you. Sincerely,

Rich Voss Vice President, Power Development Great Northern Power Development, L.P. 701-223-8783

LANDOWNER’S POST-MINING PREFERENCE STATEMENT

0.11
Waterway

Farmstead Yard Feed / Hay Lot Garden Residence Structures Waste Dump________________ Industrial/Utilities Mines Woodland Reservoirs Open Water
-

Native Vegetation______________________ Native Vegetation Shelterbelt Corral/Feedlot________________ Tame Pasture 0.10 Tame Pasture

Tame Pasture Woodland__________ Driveway Roads Surface Right-of-Way/Lane

Wetlands

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Please sign and return this form to South Heart Coal LLC, Attn: Rich Voss, 1022 East Divide Avenue, Suite E, Bismarck, ND 58501 Thank you for your cooperation. Landowner Signature Name Address
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______

___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ________ ___________ _________ ________ ____ ______ _

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LANDOWNER’S POST-MINING PREFERENCE STATEMENT

U E N V
E

A
Subsection 3 of Section 69-05.2-09-13 of the North Dakota Administrative Code requires a surface coal mining company to obtain a preference statement from a landowner owning land located within the proposed coal mining permit area. This land use statement will be included as part of the SHP Mine Permit Application. The total lands to be included in this surface coal mining permit application are 4,825 acres. The parcel being considered on this page, of which you are the owner, totals 0.20 acres and is described as T139N R98W Section 29: All less a tract in the SW1 4SW1/4. This parcel’s current land use is broken down as follows: Cropland 0.11 Farmstead Yard Feed Hay Lot Garden Residence Structures Waste Dump 0.10 Industrial/Utilities Mines Woodland Reservoirs Open Water
-

Cropland Waterway Native Vegetation______________________ Native Vegetation Shelterbelt CorrallFeedlot Tame Pasture
—

Tame Pasture

Tame Pasture Woodland____________
Driveway

Roads Surface Right-of-Way/Lane

Wetlands

7 Mi7?t

Please sign and return this form to South Heart Coal LLC, Attn: Rich Voss, 1022 East Divide Avenue, Suite E, Bismarck, ND 58501 Thank you for your cooperation.
Landowner Signature

Date

Name Address

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Great Northern Project Development L.P.
1022 East Divide Avenue, Suite E Bismarck, ND 58501 701-223-8783

February 26, 2010 CERTIFIED MAIL: RETURN RECEIPT REQUESTED James and Lisa Wagner 12274 Hwy 10 South Heart, North Dakota 58655-9754 Dear James and Lisa Wagner: We have previously notified you of our plans to develop the South Heart Project. This letter updates the information previously provided to you, and provides notice of our intention to apply to the State of North Dakota for a surface mining permit that will include land under your ownership. The mine will be located near South Heart and is being referred to as the South Heart Lignite Mine (SHLM). In 2008 and early 2009, the South Heart Project was planned as a coal-gasification project where the SHLM supplied coal to an adjacent synthetic natural gas (SNG) plant. In early 2009, current and expected long term natural gas prices had fallen to a point where development of the SNG concept was no longer considered economically feasible. In May 2009, the SNG concept was formally abandoned in favor of a hydrogen power project which will convert coal from the SHLM into electrical power at an integrated gasification combined cycle (IGCC) power facility. Ongoing engineering evaluations of the IGCC facility indicate that a coal production rate of 2.4 million tons per year will be required for the project.

Great Northern Project Development L.P.
1022 East Divide Avenue, Suite E Bismarck, ND 58501 701-223-8783

been developed and proven over the past 25 years, making it one of the cleanest coal-based plants in the world. Please contact us if you have any questions about the enclosed information. Thank you.

Sincerely,

Rich Voss Vice President, Power Development Great Northern Project Development, L.P. 701-223-8783
Attachment: Land Owner Notification Map

SENDER: COMPLETE THIS SECTION • Complete items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired. • Print your name and address on the reverse so that we can return the card to you. • Attach this card to the back of the mallplece, or on the front if space permits. 1. Article Addressed to:

COMPLETE THIS SECTION ON DELIVERY

A.Sig
C Agent
A B. ed by (Printed Name)

C Addressee
C. Date of Delivery

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D. Is delivery address different ficm ftem 1? 0 Yes C No If YES, enter delivefy address below

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3. ServIce Type CertIfied Mall C Express Mall C Return Receipt for Merchandise C RegIstered C Insured Mall 0 C.O.D. 4. RestrIcted Delivery? (Extra Fee) Q Yes

2. Article Number
(rransfer from service label)

7007 2680 0002 5955 9775jfl
Domestic Return Receipt
102595-02-M-1 540

PS Form

3811,

February 2004

January 3, 2008

James and Lisa Wagner 12274 Hwy 10 W Dickinson, ND 58601 Dear James and Lisa Wagner: Recently, Great Northern Power Development announced the development of a $1.4 billion coal gasification project near South Heart. This project will use North Dakota’s abundant lignite coal to produce pipeline quality synthetic natural gas to heat more than 300,000 homes, while bringing more than 200 skilled, high-paying jobs to southwest North Dakota. This truly is an exciting time for Stark County. We’re writing to you to let you know of our plans to apply for a surface mining permit from the State of North Dakota for approximately 4,825 acres of land, some of which is under your ownership. The South Heart Project (SHP) Mine Permit Area, as we refer to it, is located in Stark County, N.D., approximately two miles southwest of South Heart. In our application, we’ll file as South Heart Coal LLC (SHC), which is a wholly owned subsidiary of Great Northern Power Development L.P. (GNPD). We plan to submit the mine permit application to the North Dakota Public Service Commission in the near future and anticipate approval of the application one year later, during the winter of 2009. Initial mining-related activities will commence fall 2011. At this time, we’d also like some feedback from you. Please tell us your preferences about the postmine uses of land owned by you that will be disturbed by mining or mining-related activities within the proposed SHP Mine Permit Area. Take a moment to complete the enclosed preference statement form and indicate your preferences. If you don’t have any changes from pre-mine land uses, please indicate that in the space provided. If no comments are indicated in the Landowner’s Preference Statement or if no response is received, then the pre-mine land use will serve as a guide during our reclamation planning. We will consider all land use change proposals and do our best to incorporate your preferences into the mine reclamation plans. Please note that due to surface water, soil, topographic and/or regulatory limitations, we may not be able to incorporate all preferences for land use changes in our plan. To help you visualize the permit area, we’ve included a topographic map at a scale of 1 inch = 1,500 feet, showing the specific locations to be affected either directly or indirectly by the proposed mining operations. The map also shows the proposed year-by-year mine pit progression, stockpiles, ponds, main haul roads, and other mine support facilities and disturbance areas within the permit area.

Sincerely,

Rich Voss Vice President, Power Development Great Northern Power Development, L.P. 701-223-8783

LANDOWNER’S POST-MINING PREFERENCE STATEMENT

59.27

Farmstead Yard Feed / Hay Lot
-

16.32 Tame Pasture

Garden Residence• Structures
-

Waste Dump Industrial/Utilities Mines Woodland
-

Tame Pasture Woodland____________ Driveway Roads Surface Right-of-Way/Lane 1.45

2.09

Reservoirs Open Water Wetlands 0.18

p
-,

(

Please sign and return this form to South Heart Coal LLC, Attn: Rich Voss, 1022 East Divide Avenue, Suite E, Bismarck, ND 58501 Thank you for your cooperation. Landowner Signature Name Address UL

I’Tct

Date

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APPENDIX 1.5-1 CONTACT LIST Chapter Section General Company Golder Associates Inc. Address 44 Union Blvd. Lakewood, Colorado 80228 Name Rick Kinshella Role Project Manager Principal Investigator, Field Supervisor, Report Author Title Examiner Lease Negotiator, Title Examiner Lease Negotiator Data Coordinator Field Investigator, Report Author Principal Investigator, Field Supervisor, Report Author Field Investigator, Report Author Report Author Sr. Hydrogeologist Report Author Report Author Field Investigator, Report Author Sr. Hydrogeologist Principal Investigator, Field Supervisor, Report Author Lead Numerical Modeler, Report Author Sr. Hydrogeologist Education M.S. Civil Engineering

Dennis Meschke Contex Energy Company 2933 3rd Ave. West Dickinson, North Dakota 58601 Jon Bonner Nick Lambert Ernie Miller Golder Associates Inc. 44 Union Blvd. Lakewood, Colorado 80228 Andrea Reither David Blower 2.1 Cultural and Historic Resources Golder Associates, LTD 102, 2535 - 3rd Ave. S.E. Calgary, Alberta Canada T2A 7W5 Tom Hoffert Cathryn Williamson 2.2 Climate Golder Associates Inc. Golder Associates Inc. 44 Union Blvd. Lakewood, Colorado 80228 44 Union Blvd. Lakewood, Colorado 80228 Gisella Aquinaga Ed Pottorff 2.3.12.3.6 Geology and Overburden Jacob Waples Richard Tifft Judd Stark Ed Pottorff Golder Associates Ground Water Hydrology Inc. 44 Union Blvd. Lakewood, Colorado 80228 Adam Hobson

B.A. Business B.A. Law B.A. Business 30 Years of Experience Negotiating Oil and Gas Leases B. A. Geography Ph.D. Archaeology B.A. Archaeology B.A. Ethno history of Colonial Americas M.S. Environmental Science & Management B.S. Geology M.S. Hydrogeology B.A. Earth & Environmental Science M.S. Geology B.S. Geology B.S. Land Rehabilitation B.S. Geology M.S. Hydrogeology M.S. Water Resources Engineering B.S. Geology Ph.D. Geological Engineering B.S. Geology M.S. Hydrogeology PhD Forest Hydrology B.S. Land Rehabilitation M.S. Zoology B.S. Forestry B.S. Geology M.S. Hydrogeology M.S. Water Resources Engineering B.S. Fish and Wildlife Management, M.S. Zoology B.S. Forestry B.S. Mining Engineering

Introduction, Legal, Financial, Compliance, and Related Information

2.3.7 2.4

Coal Quality 743 Horizon Court, Suite 372 Norwest Corporation Characteristics Narrative Grand Juction, Colorado 81506 Catena Consulting, 716 Aronson Ave. Soils Resources LLC Billings, Montana 59105

2.5

Kelly Greaser 2.6.12.6.4, 2.6.6 2.6.5 2.7.1.1 2.7.1.2 Golder Associates Inc. Norwest Catena Consulting, LLC Westech Golder Associates Inc. Westech Westech 44 Union Blvd. Lakewood, Colorado 80228 950 South Cherry St., Suite 800 Denver, Colorado 80246 716 Aronson Ave. Billings, Montana 59105 3005 Airport Rd. Helena, Montana 59602 44 Union Blvd. Lakewood, Colorado 80228 3005 Airport Rd. Helena, Montana 59602 3005 Airport Rd. Helena, Montana 59602 136 East South Temple, 12th Floor Salt Lake City, Utah 84111 136 East South Temple, 12th Floor Salt Lake City, Utah 84111 950 South Cherry St. Suite 800 Denver, Colorado 80246

Surface Water Surface Water Probable Hydrologic Consequences Pre-Mining Land Use Pre-Mining Vegetation

Ed Pottorff

Art O'Hare Judd Stark Ken Scow Dean Culwell Ed Pottorff Adam Hobson Patrick Farmer Dean Culwell Jim Hitt

Report Author Field Investigator, Report Author Principal Investigator Plant Ecologist Sr. Hydrogeologist Principal Investigator, Report Author Principal Investigator, Report Author Principal Investigator Senior Engineer-Report Author Senior Engineer-Report Author Section 3.6 Report Author

2.8

Alluvial Valley Floors Fish and Willife Resources Pre-Mining Wetland Report

2.9 2.10

Operations Plans

Norwest

Doug Moore

B.S. Mining Engineering

Art O'Hare

PhD Forest Hydrology

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Golder Associates

SHSH-1001/063-2212A

APPENDIX 1.5-1 CONTACT LIST Chapter Section Post-Mining and Reclamation Plans Post-Mining Land Use and Revegetation Plan References Cited Company Address 136 East South Temple, 12th Floor Salt Lake City, Utah 84111 44 Union Blvd. Lakewood, Colorado 80228 44 Union Blvd. Lakewood, Colorado 80228 Name Jim Hitt Doug Moore Mike Bellitto Role Senior Engineer-Report Author Senior Engineer-Report Author Report Author Education B.S. Mining Engineering B.S. Mining Engineering

4.1

Norwest

4.2, 4.3 5

Golder Associates Inc. Golder Associates Inc.

M.S. Timber Harvest Engineering and Technology. B.S. Forestry Editor/Reviewer B.S. Geological Engineering Annette Moltzan References were prepared by authors of each chapter

Notes: Governmental agencies consulted in the preparation of each chapter are listed in Chapter 5-References Cited B.S. = Bachelor of Science degree B.A. = Bachelor of Arts degree M.S. = Masters of Science degree Ph.D. = Doctor of Philosophy degree

Revision 0
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Golder Associates

SHSH-1001/063-2212A