F I LED APR 0 8 2014

S6CRETARY, BOARD OF OIl, GAS & MINING

BEFORE THE BOARD OF OIL, GAS AND MINING

DEPARTMENT OF NATURAL RESOURCES

STATE OF UTAH

LIVING RIVERS,

Petitioner,

vs.

UTAH DIVISION OF OIL, GAS & MINING,

Respondent,

RED LEAF RESOURCES, INC.,

Intervenor-Respondent.

NOTICE OF FINAL DECISION BY UT AH DIVISION OF OIL, GAS AND

MINING ON MODIFICATION OF THE SOUTHWEST #1 MINE NOTICE OF

INTENTION

Docket No. 2012-17 Cause No. M/047/0103

The Utah Division of Oil, Gas and Mining (the "Division"), pursuant to the Joint Motion

for Stay dated June 26, 2012 in the above-entitled matter, hereby notifies the Board and all

parties to this matter that by letter dated February 24, 2014, attached as Exhibit A, the Division

has approved the modified Notice of Intent to Commence Large Mining Operations for Red Leaf

Resources Southwest #1 Mine M/047/0103, Uintah County, Utah ("NOI"). Red Leafs Ground

Water Discharge Permit ("GWDP") from the Utah Division of Water Quality ("DWQ")

provided in Appendix N of the NOI satisfies Condition No.1 of the March 9, 2012 Division

Order in this matter. The current GWDP is for the Early Production System (EPS) capsule only.

Pursuant to the Division's February 24, 2014 letter approval, an EPS capsule and all other

mining operations outlined in the NOI may be constructed and operated with the exception of

additional capsules which may require a ground water discharge permit from the DWQ.

Consistent with Condition No. 1 of the March 9, 2012 Division Order, thirty days prior to

construction of additional capsules (other than the approved EPS Capsule), Red Leaf Resources,

Inc. will include in the NOI a GWDP for the additional capsules from DWQ or a letter from

DWQ confirming that a GWDP is not required. Any modifications to the GWDP required by

DWQ, after obtaining results from the EPS capsule, will be submitted as an update to the NO!.

The Division will determine whether any NOr updates resulting from modification of the GWDP

for the EPS Capsule or new GWDPs required for additional capsules are insignificant

amendments which do not require public notice pursuant to R64 7 -4-118 or if such updates are

significant revisions to the NOI which require public notice and comment pursuant to R647-4-

119.

This Notice constitutes the Division's "final decision" as contemplated in paragraph 2 of

the Board's Order for Stay of Proceedings dated June 27,2012.

Dated this <tlA...day of April, 2014.

Ste en . Alder Kassidy Wallin Assistant Attorneys General Counsel for the Division of Oil, Gas and Mining

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CERTIFICATE OF SERVICE

I hereby certify that on the~'1:iay of April, 2014, a true and correct copy of the foregoing

NOTICE OF FINAL DECISION BY UTAH DIVISION OF OIL, GAS AND MINING ON

MODIFICATION OF THE SOUTHWEST #1 MINE NOTICE OF INTENTION was

served bye-mail and United States Mail, postage prepaid, to the following:

Joro Walker Charles R. Dubuc Western Resource Advocates 150 South 600 East, Suite 2A Salt Lake City, Utah 84102

Steven F. Alder Kassidy Wallin Assistant Attorney General Counsel for the Board of Oil, Gas and Mining 1594 West North Temple, Suite 300 Salt Lake City, Utah 84116

Denise A. Dragoo James P. Allen Stewart O. Peay Snell & Wilmer LLP 15 West South Temple, Suite 1200 Salt Lake City, Utah 84101

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EXHIBIT A

GARY R.IlERBERT o-,.,Dr

SPENCER J. COX Llnu.nlllf' aov-Dr

Lance Lehnhof

State of Utah DEPARTMENT OF NATURAL RESOURCES

MICHAEL R. STYLER EDcu"...DlrldtJr

DlvlslOD of 011, Ga. aDd MIDIDg JOHNR.BAZA Divisllllf DirwcIor

February 24, 2014

Red Leaf Resources, (nc. 10808 South River Front Parkway, Suite 200 South Sordan, Utah 84095

Subject: Approval of Modified Notice of Intention to Commence Large Mining Operations (NOn and Reclamation Surety. Red Leaf Resources. Southwest #1 Mine, MlO47(010), Uintah County, llmh

Dear Mr. Lehnhof.

The Division of Oil, Gas and Mining approves the amendment received February 3, 2014, adding the Early Production System (EPS) capsule. The Division now permits you to begin mining operations as outlined in the Notice of Intention to Commence Large Mining Operations (Notice). The permitted disturbed area is 1477 acres (Table 106.3, page 22), and the reclamation surety is posted in the fonn of a cash bond in the amount oU3,776,OOO. .

Please be advised that you must also acquire approval from School and Institutional Trust Lands Administration (SITLA) before beginning mining operations on state managed leases. The approval or acceptance of a complete NOI does not relieve an operator from his responsibility to comply with the applicable statutes, rules, regulations, and ordinances of all local, state and federal agencies with jurisdiction over any aspect of the operator's mining operations.

Enclosed are the stamped approved copies of the latest revisions to the Notice for incorporation into your copy of the NOr. Please keep your plan current by submitting changes using Fonn MR-REV-att, which is located on the web at www.ogm.utah.gov.

All future correspondence should reference M/47/0103. Thank you for your help and patience in finalizing this permitting action.

PB8: AA:eb Enclos1lR cc: Cc:: Da!ise Orqoo, Rob Dubuc

Sincerely,

Jc:ny Mansfield, jmansflc:ld@ulah.gov - Sm.A w/o End. Man McClIlier, mc:azier@c:o.uinrah.ul.1lS UlnJah Co. WID Encl.

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1594 We$tNorth Temp!e, Suite 1210, PO Box 14S80I, Salt Lab Oty. UT 14114-580\ telephone (80\) 538-5340 ./ilcsimile (801) 359·3940 • TrY (80\) 538·7458 • www.opt.ulIIh.gov