COMPANY/BUSINESS NAME & ADDRESS

(928) 871-7513

FORM 245-C

ANNUAL REPORT FOR COAL MINESFOR

POSSESSORY INTEREST TAX

A Detailed Set of Instructions are included with this Form. Please include your most recent (2017) 10K and Stockholder Report

TAX YEAR 2018

FORM DUEApril 1, 2018

YEAR ENDING

WINDOW ROCK, ARIZONA 86515

December 31, 2017

A Form 200 must accompany this form.

COMPLETE & MAIL TO:

OFFICE OF THE NAVAJO TAX COMMISSIONPOST OFFICE BOX 1903

FOR INQUIRIES, PLEASE CALL:

www.tax.navajo-nsn.gov

CONFIDENTIAL CONFIDENTIAL

PIT FORM 245-C Page 1 of 12 www.tax.navajo-nsn.gov

REVISED 01/01/18

COMPANY/BUSINESS NAME :

RECL = Reclamation PROD = Production PITX = Possessory Interest TaxENVI = Environmental BLDG = Building H/S = Health & SafetyDEV = Development ROY = Royalty TN-K = Tons Thousands

Name of Property Lease or Contract No. :

Name of Operator/Lessee :

Address of Operator/Lessee :

Name & Title of Company Official Responsible For This Report : Telephone Number :

E-mail Address:

Name of Contact Person Regarding Information In This Report : Telephone Number :

E-mail Address:

Type of Mine - - Underground, Strip Mine, etc. :

Coal Quality for 2017 Sales

BTU ASH % BULK DENSITY (lb.ft3 )

MOISTURE % SULFUR %

Date Production Started : Date Production Stopped :

Average Weighted Sales Price Per Unit Received for Coal Sold in the Year 2017

The Form 200 must accompany this form.

TN = Short Tons

YD =ThousandsCubic Yards

FOR THE YEAR ENDED DECEMBER 31, 2017

If you need assistance in completing this report, call the Office of the Navajo Tax Commission at (928) 871-7513

K =

FILING INSTRUCTIONS ARE ENCLOSEDlease refer to filing instructions (available on ONTC website) when completing this report. If you need assistance in completing this report, call th

Office of the Navajo Tax Commission at (928) 871-7513. Abbreviations used in this report include:

COAL MINES

MINING COMPANY CONFIDENTIAL DATA

CONFIDENTIAL CONFIDENTIAL

PIT FORM 245-C Page 2 of 12 www.tax.navajo-nsn.gov

REVISED 01/01/18

1. Mineable Coal Total Tons (000's) :

Coal Saleable Total Tons (000's) :

2. Overburden & Topsoil

Cubic Yards3. Strip Ratio

Yards Waste / Tons CoalorTons Waste / Tons Coal

4. Grade or Mineable Coal (BTU's)

Grade of Saleable Coal (BTU's)5. Projected Operating Life in Years

for ReservesProjected Operating Life in YearsBased on Contract

TONS COAL (ORIGINAL RESERVES AT STARTUP)

TOTAL ACRES TO BE MINED RANGE ACRES

January 1, 2018 January 1, 2018 January 1, 2018 January 1, 2018 January 1, 2017 Prior Year

PRODUCING COAL LANDS

TOTAL ACRES UNDER LEASECOUNTY SECTION TOWNSHIP

RESERVESFOR YEAR ENDED DECEMBER 31, 2017

COMPANY : _________________________________________________

Coal Reserves : As of January 1, 2018, coal reserves should include all owned or leased coal held by the company. Show the tons of reserves held in each year below:

LEASED NAVAJO STATE, FEDERAL, OTHER OWNED TOTAL TOTAL

CONFIDENTIAL CONFIDENTIAL

PIT FORM 245-C Page 3 of 12 www.tax.navajo-nsn.gov

REVISED 01/01/18

Mine Production

Operating Days/Years

Tons Coal Mined

Tons Coal Sold

Tons Coal Stockpiled

Total Waste Mined

(Tons)

Cubic Yards Waste

Mined

Tons Topsoil Reclaimed

Strip Ratio

Yd Waste/Coal Tn

Waste Ton/Coal Tn

Preparation Plant

Operating Days/Year

Coal Processed/Day

Coal Processed/Year

Personnel Levels (include both hourly and salaried personnel)

Mine Dept. Personnel

Prep. Plant Personnel

Admin Dept. Personnel

Other Departments

Total Personnel Level

2014 2015 2016 2017 Phase I Phase 2 Phase 3 Phase 4

PRODUCTIONFOR YEAR ENDED DECEMBER 31, 2017

COMPANY : _________________________________________________

ANNUAL HISTORICAL COAL PRODUCTION FUTURE PROJECTIONS2013

CONFIDENTIAL CONFIDENTIAL

PIT FORM 245-C Page 4 of 12 www.tax.navajo-nsn.gov

REVISED 01/01/18

Company : FOR YEAR ENDED DECEMBER 31, 2017

Coal ProductionTons Sold

Tons Stockpiled

Tons MinedAverage Selling PricePer Ton (in $ per ton ofcoal to 2 decimal places)

Value of Coal Sold - $

Ash Haul & Other By-ProductsRevenue Per Ton

($ or $/ TN Coal Sold)

Cost Per Ton

Profit Per Ton

Profit Dollars

Units-Other Byproducts

Selling Price

Profit-Other Byproduct$

TOTAL PROFIT $

Ash & Byproducts

TOTAL PROFIT $/Ton

Production Revenues - $Total Coal Sales - $

Total Byprod. Profit - $

Total Ash Haul Rev - $

Total Ash Haul Exp - $

Misc Revenues - $

Total Gross Revenue - $Total Gross Revenue Sales $/Ton Coal Sold

ANNUAL HISTORICAL COAL PRODUCTION FUTURE PROJECTIONS2013 2014 2015 2016 2017 Phase I Phase 2 Phase 3 Phase 4

CONFIDENTIAL CONFIDENTIAL

PIT FORM 245-C Page 5 of 12 www.tax.navajo-nsn.gov

REVISED 01/01/18

Company : FOR YEAR ENDED DECEMBER 31, 2017

OPERATING COSTS (Express costs in $ per Ton of Coal Sales to two decimal places)

Stripping

Mining

Truck and/or Rail Haul

Crushing/Stock Pile

Coal Prep

Conveying

Mine Office

Reclamation

Gen & Admin

Healthy & Safety

Warehouse

Insurance

Royalty (Navajo Coal)

Royalty, other than Navajo

Marketing

Overhead

Gross Receipt Tax

Possessory Interest Tax

Severance Tax

Property Tax

Other Tax

Other Costs

SUM OPERATING COSTS

INCOME TAX EXPENSES

Tax Cost

CAPITAL COSTEnvironmental Items

Replacement Items

Total Capital Cost (Navajo Only)

SUM PRODUCTION COST

Include all allowable operating, tax, & capital costs

OPERATING COST DETAILInterest Exp in Cost Above

Depreciation in Cost Above

Amortization in Cost Aboce

ANNUAL HISTORICAL COAL PRODUCTION FUTURE PROJECTIONS2013 2014 2015 2016 2017 Phase I Phase 2 Phase 3 Phase 4

CONFIDENTIAL CONFIDENTIAL

PIT FORM 245-C Page 6 of 12 www.tax.navajo-nsn.gov

REVISED 01/01/18

DETAIL OF COAL SALES

REVENUES IN $/TN (Report in dollars per ton Coal Sold to two decimal places)

Value of Coal - $/TN

Value of Byprod - $/TN

Misc Revenue - $/TN

Ash Haul Profit - $/TN

Total Revenue - $/TN

TOTAL REVENUE

PRODUCTION COST IN $/TN (Report in Dollars per ton of Coal Sold to two decimal places)

Sum Operating Cost $/TN

Income Tax Cost $/TN

Capital Costs $/TN

Sum Product Cost $/TN

Sum Product Cost $

PROFIT MARGIN IN $/TN (Report in Dollars per ton of Coal Sold to two decimal places)

Total Revenue - $/TN

Sum Product. Cost $/TN

Profit Margin $/TN

PROFIT MARGIN IN $

Gross Product Revenue $

Gross Product Cost $

Profit Margin $

Phase 2 Phase 3

FOR YEAR ENDED DECEMBER 31, 2017COMPANY : _________________________________________________

ANNUAL HISTORICAL COAL PRODUCTION FUTURE PROJECTIONS

Phase 42013 2014 2015 2016 2017 Phase I

CONFIDENTIAL CONFIDENTIAL

PIT FORM 245-C Page 7 of 12 www.tax.navajo-nsn.gov

REVISED 01/01/18

SCHEDULE OF DEPRECIABLE ASSETS

Company Based on Original Cost by Year of Acquisition County of

Operation (Figures in Thousands of Dollars)

YEAR by Year AcquisitionTotal Original Cost

1994199319921991199019891988198719861985

TOTAL

200320022001200019991998199719961995

201220112010200920082007200620052004

2017201620152014

Environmental Buildings & Structures

2013

Small Scale Eqmt. Large Scale Eqmt. Shovels & Draglines Office Equipment Preparation PlantLeased and Owned Mining Equipment

CONFIDENTIAL CONFIDENTIAL

PIT FORM 245-C Page 8 of 12 www.tax.navajo-nsn.gov

REVISED 01/01/18

LOCATION BY COUNTY & STATECompany ORIGINAL COST FOR REAL & PERSONAL PROPERTY County of

Operation Based on Original Cost FOR YEAR ENDED DECEMBER 31, 2017(Figures in Thousands of Dollars)

1. Personal Property

2. Improvements

TOTAL

County Mining Environmental Office Plant Supplies In Progress Buildings CostPreparation Construction Miscellaneous Total Original

Equipment Plant Supplies in Progress Equipment Cost

TOTAL

County Equipment Draglines EquipmentMiscellaneous Total Original Mining Shovels Environmental Office Preparation Construction

CONFIDENTIAL CONFIDENTIAL

PIT FORM 245-C Page 9 of 12 www.tax.navajo-nsn.gov

REVISED 01/01/18

Company SUPPLIES INVENTORY SCHEDULE County of

Operation Based on Original Cost FOR YEAR ENDED DECEMBER 31, 2017

Mine

Prep Plant

Draglines/Shovels

Environmental

Office

Miscellaneous Buildings

INACTIVE INVENTORY. VALUE OF ALL COAL INVENTORIES ON STOCKPILES AT YEAR END $

CONSTRUCTION IN PROGRESS

DESCRIPTION OF PROJECT

*ATTACH SEPARATE PAGE IF NECESSARY

REPORT ORIGINAL COST BEFORE ALLOWANCES FOR DETERIORATION, DEPRECIATION, OR SALVAGE. SALVAGE ITEMS DO NOT INCLUDE INSURANCE PARTS OR

TOTAL COST :

LIST PROJECTS IN EXCESS OF $1 MILLION EXPENDED. USE CATEGORY REFERS TO MINE, PREP PLANT, ENVIRONMENTAL, OFFICE OR BUILDING.

ORIGINAL COST OF ORIGINAL COST OF CONSUMABLES ORIGINAL COST OF NET ORIGINAL COST LESS SUPPLY CATEGORY

TOTAL COST :

DATE CONSTRUCTION DATE OF EXPECTED TOTAL PROJECTED CAPITAL EXPENDED TO USE CATEGORY STARTED COMPLETION CAPITAL EXPENDITURE DATE OF PROJECT

ALL SUPPLIES (FUEL, TIRES, REAGENTS) SALVAGE ITEMS CONSUMABLES & SALVAGE

CONFIDENTIAL CONFIDENTIAL

PIT FORM 245-C Page 10 of 12 www.tax.navajo-nsn.gov

REVISED 01/01/18

Company LEASED EQUIPMENT SCHEDULE County of

Operation Based on Original Cost FOR YEAR ENDED DECEMBER 31, 2017

PAYMENT EXPENSE COST PURPOSELEASE ORIGINALLEASE TERM

START ENDECONOMIC SERIAL OWNER OR LEASE

PURPOSE REFERS TO: REPLACEMENT - R, EXPANSION - X, OR ENVIRONMENTAL - E

DESCRIPTION LIFE NUMBER LESSOR

CONFIDENTIAL CONFIDENTIAL

PIT FORM 245-C Page 11 of 12 www.tax.navajo-nsn.gov

REVISED 01/01/18

COMPANY/BUSINESS NAME :

*List any additional information which you believe should be considered in determining the value of this mine.

Dated this day of ,(day) (month) (year)

x ( )

State Of

County Of

Subscribed and Sworn to me by _________________________ this _______ day of __________________, ________.(month) (year)

My Commission Expires : _________________

accompanying schedules and statements, and to the best of my knowledge, information and belief, it is true,correct, and complete.

Notary Public

Taxpayer or Duly Authorized Agent Signature Print or Type Name Telephone Number

Title Company

**************************************************************************************************

2018

COAL MINES

ADDITIONAL INFORMATION

VERIFICATION

Under the penalties of perjury, I do solemnly swear or affirm that I have examined this report, including

CONFIDENTIAL CONFIDENTIAL

PIT FORM 245-C Page 12 of 12 www.tax.navajo-nsn.gov

REVISED 01/01/18