# STATE 

# OF 

# COLORADO

COLORADO DEPARTMENT OF 

### PUBLIC HEALTH AND ENVIRONMENT AIR 

### POLLUTION CONTROL DIVISION TELEPHONE: 

## (303) 692-3150 

# CONSTRUCTION PERMIT

PERMIT NO: 

### 08ME0506F 

## INITIAL 

# APPROVAL DATE ISSUED: 

### November 

### 21, 2008 ISSUED TO: 

### CAM-Colorado LLC
THE SOURCE TO WHICH THIS PERMIT APPLIES IS DESCRIBED AND LOCATED AS FOLLOWS:



### Surface

### facilities,

## supporting underground mining ofcoal at Red 

### Cliff

### Mine,in 

### Sections 

### 3, 9& 

### 10,

### T8S,R102W of the

## 6th Principal Meridian,

## approximately 14miles North of 

### Loma,Mesa 

## County, Colorado THE 

### SPECIFIC 

### EQUIPMENT OR 

### ACTIVITY SUBJECT TO THIS PERMIT INCLUDES THE FOLLOWING:

Material 

### extraction, 

## including overburden removal and coal 

### extraction. THIS PERMIT IS GRANTED SUBJECT 

### TO ALL RULES AND 

### REGULATIONS OF THE COLORADO AIR 

### QUALITY CONTROL COMMISSION AND THE COLORADO AIR POLLUTION PREVENTION AND CONTROL ACT C.R.S.

## (25-7-101 et

## seg),TO THOSE GENERAL TERMSAND CONDITIONS INCLUDED IN THIS DOCUMENT AND THE 

### FOLLOWING SPECIFIC TERMS AND CONDITIONS: 1. This 

## permit is for 

### the activities 

## specified above; any additional process 

## equipment (i.e: Mine 

### vents,



### crushers, screens, 

## etc.) to be 

### located at this site must have a 

### separate 

## permit from the Division. 

## (Reference:

## Regulation No.3, Part 

### B, Section 

## III.E.) 2. Visible emissions 

### from 

## processing equipment and transfer 

## points shall not exceed 

## twenty percent



## (20%) opacity during normal 

## operation ofthe source. 

## During periods of

### startup,process

### modification,
or 

## adjustment of control 

## equipmentvisible 

### emissions shall not exceed 

### 30%

## opacity for more than six minutes in 

### any 

## sixty consecutive minutes. 

## Opacity shall be measured 

## by EPA Method 9. 

## (Reference: Regulation 1, Section 

### 11.A.1.& 

## 4.) 3. The

## particulate emission control measures listed on the attached page 

## (as 

## approved by the 

## Division) shall be 

## applied to the 

## particulate emission 

## producing sources as 

### required by Regulation No.1, Section III.D.1.b. 4. This source 

### shall be limited to a maximum 

## production rate as 

### listed below and all other 

### activities,



## operational rates ana numbers 

### of

## equipment as stated in the 

## application. Daily records of 

### the actual 

## production rate 

### shall be 

### maintained 

## by the

## applicant and made 

### available to the Division for

## inspection upon 

## request. (Reference:

## Regulation No.3, Part 

### B, Section 

## 11.A.4.) 

## Topsoil removal 

### shall not exceed 

### 5,000 tons 

### per 

## day or 

### 135,000 tons 

### per year.

077/0455/001 ver.2/00

### CAM-

### Colorado, LLC



### Permit No. 08ME0506F

-

### Initial 

## Approval page 2 

### Colorado 

## Department of Public 

### Health and 

### Environment Air Pollution Control Division 

## Topsoil stockpiles shall not exceed 

### 135,000 tons per 

### year and shall 

### be 

## revegetated with in one 

### year. Overburden removal shall not exceed 

### 15,000 tons per 

## day or 

### 2,500,000 tons 

### per year. 

### Overburden 

## stockpiles shall not exceed 

### 200,000tons and shall be 

## revegetated within one

### year. Mined 

### coal 

## production shall not exceed 

### 15,600 tons per 

## day or 

### 6,000,000 tons 

### per year. Raw 

### material 

## stockpiles shall not exceed 

### 300,000 tons. Processed 

### material 

## stockpiles shall not exceed 

### 350,000 tons. 5. 

## Fugitive particulate emissions shall not exceed the 

## following limitations 

## (ascalculated in 

### the Division’s 

## preliminary analysis): (Reference:Regulation No.3, Part

, Section 

## 1I.A.4.)

Particulate Matter: 

## Fugitive Particulate Matter < 10 IJm 

## (PM1O): 120.1 tons per 

### year 37.5 tons 

### per year. Note: 

## Compliance with these 

## fugitive emission limits shall be demonstrated 

## by not 

## exceeding the 

## production limits in 

### condition number 4and 

## by 

## following the 

### attached 

## fugitive dust 

### emissions control 

## plan. 6. A 

### revised Air 

### Pollutant Emission Notice 

## (APEN) shall be 

### filed: 

## (Reference:Regulation No.3,Part

### A, Section 

## II.C.)

a. 

## Annually whenever a 

## significant increase in emissions occurs as 

### follows:

For 

### any criteria 

### pollutant: For sources

## emitting less 

### than 100tons per

### year, a 

## change in 

### actual emissions 

### of

### five tons 

### per 

### year or more, above the level 

## reported on the last

### APEN; or A 

## change in 

### actual 

### emissions, above the 

### level 

## reported on the 

### last APEN 

### submitted, of 50 

## pounds of lead. For any non-criteria 

### reportable pollutant: If the 

### emissions increase 

## by 50% or five 

## (5) tons per 

### year,whichever is 

### less,above the level 

## reported on the lastAPEN submitted to the Division. b. Whenever there is a 

### change in the owner or 

### operator of 

### any 

## facility, process, or 

## activity; or

c. 

### Whenever new control 

## equipment is 

### installed, or 

### whenever a 

### different 

### type of control



## equipment 

## replaces an 

## existing type of control 

## equipment; or d. Whenever a 

## permit limitation must be 

### modified; or

e. No later 

### than 30

## days before the 

## existing APEN 

## expires.

077/0455/001 ver. 2/00

### CAM-

### Colorado, LLC

Permit No. 

### 08ME0506F

-

### Initial

## Approval page 3 

### Colorado 

## Department of 

### Public Health and 

### Environment Air Pollution Control Division
7. All 

### conveyors and 

### transfer 

## points to 

### be 

## permitted will 

### be 

## subject to 

### the New 

### Source 

### Performance

Standards 

### requirements of 

## Regulation number 

### 6,

## Subpart 000:

a. Visible 

### emissions from 

### conveyors and 

### transfer 

## points shall not 

### exceed 10%

## opacity. In 

### addition, the 

## following 

## requirements of

## Regulation No.6, Part

### A, 

## SubpartA, General 

### Provisions, 

## apply.

a. No 

### article,machine,

## equipment or 

### process shall be used to conceal an emission 

### which would



### otherwise constitute a violation 

### of an 

## applicable standard. Such 

### concealment 

### includes,but is not 

### limited 

### to,the use 

### of

### gaseousdiluents to achieve 

## compliancewith an 

## opacity standard or with a standard which is 

### based on 

### the concentration of a

## pollutant in the 

### gases

## discharged to the 

## atmosphere. 

## (960.12) b. Written 

### notification of construction and 

### initial 

### startup dates shall be 

### submitted to the Division

as 

## required under 

## 960.7.

c. Records of 

## startups, shutdowns, and malfunctions shall be 

### maintained, as 

## required wnder



### 960.7. d. 

## Compliance with 

## opacity standards shall be 

### demonstrated 

## according to 

## 960.11.

e. At all 

### times,

## including periods of

## start-up,shutdown,and 

### malfunction, the

## facility and 

### control 

## equipment shall, to the extent 

## practicable, be 

### maintained and 

## operated in a manner 

### consistentwith 

## good air 

## pollution control

## practices for

## minimizing emissions. Determination ofwhether or not 

## acceptable 

## operating and maintenance 

## procedures are 

## being used 

### will be based on 

### information available to 

### the 

### Division, which may 

### include, but is not limited 

### to, 

## monitoring results,

## opacity observations, review of

## operating and maintenance 

## procedures, and 

## inspection of the source. 

## (Reference:Regulation 6, PartA. 

### General Provisions from 40CFR60.11 

## ) 8. This 

### permit shall 

## expire if the owner or 

### operator of 

### the source 

### for which this 

## permit was issued: 

## (i)

does not commence 

### construction/modification or

### operation of

### this sourcewithin 18months after either the date of issuance of this initial 

## approval permit or the date on which such 

### construction or 

## activity was scheduled to commence as set forth in the 

## permit application associated with this 

### permit; 

## (ii) discontinues construction for a 

## period of 

## eighteen months or more; 

## (iii) does not 

## complete construction within a reasonable 

### time of the estimated 

## completion date 

## (SeeGeneral Condition No. 

### 6., Item 

## 1.).Upon a 

## showing of

## good cause

## by the 

## permittee, the Division 

### may 

### grant extensions 

### ofthe 

## permit. (Reference:Regulation No.3, Part 

### B, Section 

## III.FA.) 9. Within one hundred and 

## eighty days (180) after commencement of 

## operation, compliance with the 

### conditions contained on 

### this 

## permit shall be 

### demonstrated to 

### the Division. It is the 

## permittee’s 

## responsibility to self

## certify compliancewith the conditions. Failure to demonstrate 

## compliancewithin 180

## days may result in 

### revocation ofthe

### permit. 

## (Information on how to

## certify compliance was 

### mailed with the 

### permit or can be obtained from the Division at 

### 303-692-3189.)



## By: 

# BY?~.....z:-~ R K 

### Hanc ck II

, P.E. Unit Leader

This Issuance

077 /0455/001 ver.2/00

### CAM-

### Colorado, LLC

Permit No. 08ME0506F

-Initial

## Approval page 4 Colorado 

### Department of Public Health and Environment Air 

### Pollution Control Division



### APEN Submittal 

### Log (to be maintained 

### further 

### by the 

### permittee): APEN Submittal Date APEN 

## Expiry Date Renewal APEN to be Remarks submitted 

### by December 

### 4, 2006 December 

### 4, 2012 November 

### 4, 2012 Based on 

### Initial 

### Application APEN.

Notes to 

## permit holder: 1. The

## production or raw material 

## processing limits and emission 

### limits contained in this

## permit are based

on the 

## production/processing rates 

## requested in the 

## permit 

## application. These limits 

### may be revised 

### upon 

### request of the 

## permittee 

## providing there is no exceedance 

### of any 

## specific emission control 

## regulation or 

### any ambient air 

## quality standard. A revised air 

## pollution emission notice 

## (APEN) and 

## application form must 

### be submitted with a 

### request for a 

## permit revision. 2. This source is 

## subject to the 

### Common Provisions

## Regulation Part 

### II, 

## Subpart E,

## Upset Conditions and

Breakdowns.The 

## permittee shall 

## notify the Division of

### any 

### upset condition 

### which causes a 

### violation of 

### any emission limit or limits stated in this

### permit as soon as

## possible,but no later 

### than two 

## (2) hours 

### after the start 

### of the next

## working 

## day, followed 

## by written notice to 

### the Division 

## explaining the cause of the occurrence and that 

### proper action has 

### been or 

### is 

## being taken to correct the 

### conditions 

## causing said violation and to 

### prevent such excess emission in the future. 3. The emission levels contained in this 

### permit are based on the

## following emission factorsand 

## assuming

a control factor of 

### 80% 

## (anychange in 

### operations may 

### change these 

## factors): Fugitive Particulate Matter: 

## Fugitive PMlO 

## (particles less than 10

## microns): 0.0801 

## pounds per ton of coal mine waste 0.0250

## pounds per ton 

### of coal mine waste 4. This source is classified as a: Minor source

077/0455/001 ver. 2/00

### CAM- 

## Colorado, LLC

Permit No. 08ME0506F

-

### Initial 

## Approval page 5 

### Colorado 

## Department of Public Health and Environment Air 

### Pollution Control 

### Division PARTICULATE 

### EMISSIONS CONTROL PLAN FOR 

### MINING AND PROCESSING ACTIVITIES THE 

### FOLLOWING 

### PARTICULATE EMISSIONS CONTROL MEASURES SHALL BE 

### USED FOR 

### COMPLIANCE PURPOSES ON THE

### ACTIVITIES COVERED BY 

### THIS 

### PERMIT,AS 

### REQUIRED BY 

### THE AIR 

### QUALITY CONTROL COMMISSION REGULATION 

### NO.1, SECTION 

### III.D.1.b. THIS 

### SOURCE IS 

### SUBJECT TO THE 

### FOLLOWING EMISSION 

### GUIDELINES:

a. 

## Mining and 

## Processing Activities

-

### Visible emissions not to 

### exceed 

### 20%, no 

## off-property transport of visible emissions. b. Haul 

### Roads

-

### No 

## off-property transportofvisible emissions 

### shall

## apply to on-site 

### haul 

### roads,the 

### nuisance 

## guidelines shall 

## apply to 

### off-site haul roads.

c. Haul Trucks

- There 

### shall be no 

## off-property transport of visible 

### emissions from 

### haul trucks when 

## operating on the 

## property of the owner or 

## operator. There 

### shall be no 

### off-vehicle 

## transport of 

### visible emissions

### from the material in 

### the haul trucks

### when 

## operating off

### ofthe

## property of

### the owner or

### operator. Control Measures 1. 

## Adequate soil 

### moisture must 

### be maintained in 

## topsoil and 

### overburden to control 

### emissions 

## during removal. 

## Watering shall be 

## implemented if 

### necessary. 2. 

## Topsoil and overburden 

## stockpiles shall be 

## revegetated within one 

### year. 3. 

### Emissions from material 

## handling (Le.removal,

## loading,and 

## hauling)shall be controlled 

## by

## watering at

all 

### times unless natural moisture is sufficient to 

### control emissions. 4. 

## Unpaved haul roads shall be 

## graveled and 

## paved, as 

### per initial 

## application, and watered as 

### often as



### needed to control 

## fugitive particulate emissions such that the above 

## guidelines are met. 5. 

### Reclamation works and 

## sequential extraction of 

### material shall be initiated to 

## keep the total 

### disturbed

areas at 

### anyone time to a minimum. 6. 

### Material 

## stockpiles shall be 

### watered as 

### necessary to control 

## fugitive 

## particulate emissions. 7. Plant

### entryway,truck service 

### roads,and concrete 

## batching areas shall be 

## graveled or

## paved.

## Watering

shall be 

## implemented if emission 

## guidelines above are not met.



### 077/0455/001 ver.2/00CAM-

### Colorado, LLC



### Permit No. OBME0506F

-

### Initial

## Approval page 6 Colorado 

## Department of 

### Public Health and Environment Air Pollution 

### Control Division
GENERAL TERMS AND CONDITIONS: 

### (IMPORTANT! READ ITEMS 5,6,7AND 

### 8) 1. This 

### permit is issued in reliance upon the accuracy and 

### completeness of information 

### supplied by the



### applicant and is conditioned upon conduct ofthe

### activity, or 

### construction,installation and 

### operation ofthe source,in accordance with this information and with 

### representations made 

### by the 

### applicant or 

### applicant’s agents. It is valid 

### only for the 

### equipment and 

### operations or 

### activity specifically identified on the 

### permit. 2. Unless 

### specifically stated 

### otherwise,the

### general and 

### specific conditions contained in this

### permit have been

determined 

### by the APCD to be necessary to assure 

### compliance with the 

### provisions of Section 25-7- 

### 114.5(7)(a), C.R.S. 3. Each and every condition ofthis

### permit is a material 

### part hereof and is not severable. 

### Any 

### challenge to or



### appealof, a condition hereof shall constitute a 

### rejection ofthe entire 

### permit and upon such occurrence,this 

### permit shall be deemed denied ab initio. This

### permit may be revoked at any time

### prior tofinal

### approval by the Air Pollution Control Division 

### (APCD) on 

### grounds set forth in the Colorado Air 

### Quality ControlAct and 

### regulations of the Air 

### Quality Control Commission 

### (AQCC), including failure to meet any express term or condition ofthe

### permit. .Ifthe Division denies a 

### permit, conditions 

### imposed upon a

### permit are contested 

### by the

### applicant, or the Division revokes a 

### permit,the

### applicant or owner or

### operator ofa source may 

### request a 

### hearing before theAQCC for review of the Division’s action. 4. This 

### permit and any 

### required attachments must be retained and made available for 

### inspection upon



### request at the location set forth herein. With 

### respect to a 

### portable source that is moved to a new 

### location, a copy ofthe Relocation Notice 

### (requiredby law to be submitted to theAPCD whenever a

### portable source is 

### relocated) should be attached to this 

### permit. The 

### permit may be reissued to a new owner 

### by the APCD as

### provided in AQCC 

### Regulation No.3, Part 

### B,Section II.B. upon a 

### request for transfer of

### ownership and the submittal of a revised APEN and the 

### required fee. 5. Issuance 

### (initial approval) of an emission 

### permit does not 

### provide "final" 

### authority for this 

### activity or



### operation of this source. Final 

### approval of the 

### permit must be secured from the APCD in 

### writing in accordance with the 

### provisions of 

### 25-7-114.5(12)(a)C.R.S. and AQCC 

### Regulation No.3,Part 

### B,Section III.G. Final 

### approval cannot be 

### granted until the

### operation or

### activity commences and has been verified 

### by theAPCD as

### conforming in all 

### respectswith the conditions ofthe

### permit. If theAPCD so

### determines,itwill 

### provide written documentation of such final 

### approval, which does constitute "final"

### authority to 

### operate. 

### Compliance with the

### permit conditionsmustbe demonstratedwithin 180

### daysafter commencement of

### operation. 6. THIS PERMITAUTOMATICALLY EXPIRES IF you 

### (1) do not commence construction or

### operation within 18months after either the date of issuance ofthis

### permit or the date onwhich such construction or

### activity was scheduled to commence as setforth in the

### permit,whichever is 

### later; 

### (2) discontinue construction for a 

### period of 18months or more; or 

### (3) do not

### complete construction within a reasonable time ofthe estimated 

### completion date. Extensions of the 

### expiration date may be 

### granted by theAPCD upon a 

### showing of

### good cause 

### by the 

### permittee prior to the 

### expiration date. 7. YOU MUST 

### notify the APCD at least 

### thirty days (fifteen 

### days for 

### portable 

### sources) prior to

commencement of the 

### permitted operation or 

### activity. Failure to do so is a violation of Section 25-7- 

### 114.5(12)(a),C.R.S.and AQCC 

### Regulation No.3,Part 

### B,Section 

### III.G.1., and can result in the revocation of the 

### permit. You must demonstrate 

### compliance with the 

### permit conditions within 180 

### days after commencementof

### operation as stated in condition 5. 8. Section 

### 25-7-114.7(2)(a), C.R.S.

### requires that all sources

### required to file an Air Pollution Emission Notice



### (APEN)

must pay an annual fee to cover the costs of

### inspections and administration. If a source or

### activity is to be 

### discontinued,the owner must 

### notify the Division in

### writing requesting a cancellation ofthe 

### permit. 

### Upon notification, annual fee 

### billing will terminate. 9. Violation of the terms of a 

### permit or of the 

### provisions of the Colorado Air Pollution Prevention and control

Act or the 

### regulations oftheAQCC may result in 

### administrative,civil or criminal enforcement actions under Sections 25-7-115 

### (enforcement),-121 

### (injunctions), -122 

### (civil penalties), -122.1 

### (criminal 

### penalties), C.R.S.

077/0455/001 ver.2/00