UNITED STATES
DEPARTMENT OF THE INTERIOR

This mining plan approval document is issued by the United States of America to:

Westmoreland San Juan Mining LLC
300 County Road 6800
Waterflow, NM 87421

for a mining plan modification for Federal lease NM-99144 at the San Juan Mine. This mining
plan approval supplements all previous mining plan approvals for the San Juan Mine. The
approval is subject to the following conditions. Westmoreland San Juan Mining LLC is
hereinafter referred to as the operator.

1.

2.

Statutes and Regulations: This mining plan approval is issued pursuant to Federal lease NM-
99144; the Mineral Leasing Act of 1920, as amended (30 U.S.C. 181 et seq.); and in the case
of acquired lands, the Mineral Leasing Act for Acquired Lands of 1947, as amended (30
U.S.C. 351 et seq.). This mining plan approval is subject to all applicable laws and
regulations of the Secretary of the Interior which are now or hereafter in force; and all such
laws and regulations are made part hereof. The operator shall comply with the provisions of
the Federal Water Pollution and Control Act (33 U.S.C. 1251 et seq.), the Clean Air Act (42
U.S.C. 7401 et seq.), and other applicable Federal laws.

This document approves the mining plan modification for Federal lease NM-99144 at the

San Juan Mine and authorizes coal development or mining operations on the Federal lease
within the area of mining approval. This authorization expands the approved mining plan
area into the following Federal coal lands:

NM-99144:
Township 30, North, Range 14 West, N.M.P.M.

Section 17: All;

Section 18: All;

Section 19: All;

Section 20: All;

Section 29: All;

Section 30: All;

Section 31: Lot 1 (41.70 ac.), Lot 2 (41.21 ac.), Lot 3 (40.73 ac.),
Lot 4 (40.24 ac.), N1/2, N1/2 S1/2


These lands in Federal Lease NM-99144 encompass 4,465 acres and are found on the United
States Geological Service 7.5 minuet Quadrangle map of Red Desert: Black Rock South and
North, as shown in the map appended hereto as Attachment A.

. The operator shall conduct coal development or mining operations only as described in the
complete permit application package, and approved by the New Mexico Energy, Mineral and
Natural Resources Department, Reclamation Division, except as otherwise directed in any
conditions of this mining plan approval.

. The operator shall comply with the terms and conditions of the lease, this mining plan
approval, and the requirements of New Mexico Permit 99-01, renewed as Permit 04-Olissued
under the New Mexico State program, approved pursuant to the Surface Mining Control and
Reclamation Act of 1977 (30 U.S.C. § 1201 et seq.).

. This mining plan approval shall be binding on any person conducting coal development or
mining operations under the approved mining plan and shall remain in effect until
superseded, canceled, or withdrawn.

. If, during mining operations, unidentified prehistoric resources are discovered, the operator
shall ensure that the resources are not disturbed and shall notify the New Mexico Energy,
Mineral and Natural Resources Department, Reclamation Division and the Office of Surface
Mining Reclamation and Enforcement. The operator shall take such actions as are required
by the New Mexico Energy, Mining and Minerals Division (NMMMD) in coordination with
the Office of Surface Mining Reclamation and Enforcement (OSMRE).

. The Secretary retains jurisdiction to modify or cancel this approval, as required, on the basis

of further consultation with the U.S. Fish and Wildlife Service pursuant to section 7 of the
Endangered Species Act, as amended, 16 U.S.C. § 1531 et seq.

Date

Assistant Secretary
Land and Minerals Management
U.S. Department of the Interior