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Super RAC

February 24-25, 2009

Items to be Discussed

Coal Program

Oil Shale

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COAL• 9 mines

• 7 Underground• 2 Surface

• Production ≈ 22.8 million tons

• Revenue ≈ $55.38 million

Recent Coal Activities

• New Elk Coal – near Trinidad late 09• CAM, Red Cliff – adj McClane Canyon late 09• Oxbow Mining – Elk Creek Mine expansion ?

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LBA

Modifications• Mountain Coal – modify 2 leases to access bypass coal

Coal Mine Methane

• Vessels decision

• West Elk Coal Lease Addendum

• West Elk Coal – R2P2

• Other Leases ?5

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Oil Shale

• Est. 800 billion barrels of oil• Approximately enough to meet US demand

for oil at current levels for next 100 years

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Oil Shale

• PEIS - (ROD) published 11/28/08

• Final Regulations published 11/18/08

• Law Suits - currently responding to FOIA requests concerning the PEIS & the Regs

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Oil Shale Regs

• 20 year lease• Royalty 5% - 5 yr 1%/year up to 12½%• NEPA

– at prior to lease sale– at mine plan approval• Diligence provisions w/penalties• Bonding to cover the cost of reclamation

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Oil Shale RDD #1

• Energy Policy Act of 2005• 6 RDD leases

– 5 insitu Colorado– 1 underground w/surface retort Utah• Shell - AMSOL – Chevron• 160 acres Preference Right to additional

4,960• $2,000 application fee

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Oil Shale RDD #1 Lease addendum

• Addendum January 18, 2009• Sect 1 - if no existing regulations

companies agree to use the regs published Nov 18, 2008 when converting

• Sect 2 – if new regs (not 11/18/08) can choose which regulations to use at conversion

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Oil Shale RDD #2 ?

• January 15, 2009• 640 acres• 10 years• No preference to larger lease• $4,000 application fee

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