Shannon No. 3 P-3948 Renewal

Applicant: SHANNON, LLC Mine Name: SHANNON NO. 4 Permit Number: P-3959-01-16-S PART I, A

STATE OF ALABAMA SURFACE MINING COMMISSION

( X ) Renewal Application for a Surface Coal Mine ( ) Renewal Application for an Underground Coal Mine ( ) Renewal Application for a Preparation Facility

PART I A. IDENTIFICATION

1.PERMIT APPLICANT Name: Shannon, LLC Street Address: 120 North Walston Bridge Road, Bldg #2 City: Jasper State: AL Zip: 35501 Mailing Address: P.O. Box 621 City: Jasper State: AL Zip: 35502 Telephone Number: ( 205 ) 295-0995 Social Security Number(Voluntary): - - Employer Identification Number: 27-4312935 ASMC License#: L-0813

2.ENTITY OR PERSON RESPONSIBLE FOR PAYING ABANDONED MINE LAND RECLAMATION FEES Name: Shannon, LLC Street Address: 120 North Walston Bridge Road, Bldg #2 City: Jasper State: AL Zip: 35501 Mailing Address: P.O. Box 621 City: Jasper State: AL Zip: 35502 Telephone Number: ( 205 ) 295-0995 Social Security Number(Voluntary): - - Employer Identification Number: 27-4312935 ASMC License#: L-0813

3.IDENTIFY THE OPERATOR FOR THIS MINE IF DIFFERENT FROM THE PERMITTEE Name: NOT APPLICABLE Street Address: City: State: Zip: Mailing Address: City: State: Zip: Telephone Number:( ) - Social Security Number(Voluntary): - - Employer Identification Number: ASMC License#

4. CONTACT PERSON FOR PERMIT REVIEW ISSUES AND CORRESPONDENCE Name: Keith Madison, Manager of Permitting -- Drummond Company, Inc. Mailing Address: P.O. Box 1549 City: Jasper State: AL Zip: 35502 Telephone Number: ( 205 ) 387-0501 Applicant: SHANNON, LLC Mine Name: SHANNON NO. 4 Permit Number: P-3959-01-16-S PART I, B

PART I B. OWNERSHIP AND CONTROL

1. PERMIT APPLICANT OWNERSHIP AND CONTROL. At the time of filing of this application provide an update of all information contained in the applicant's license file or certify that the information contained in the license is accurate and complete. The updated information shall be submitted on Part I A through Part I F of the License application form. Check one of the following.

A license update is included

Information contained in the license file is accurate and complete at the time of filing of this application. No update is included.

Following notification that the permit appears eligible for issuance, the applicant must certify that all information in this application and the license file pertaining to ownership and control, surface mining history and violation history is still valid or the applicant must submit the appropriate update information.

2. OPERATOR OWNERSHIP AND CONTROL. If someone other than the permittee has been identified as the operator under this permit, an update of the ownership and control information contained in the operator's license file must be provided or certify that the information contained in the license file is accurate and complete. The updated information shall be submitted on Part I A through Part I F of the License application form. Check one of the following: NOT APPLICABLE

A license update is included

Information contained in the license file is accurate and complete at the time of filing of this application. No update is included.

Following notification that the permit appears eligible for issuance, the applicant must certify that all information in this application and the license file pertaining to ownership and control, surface mining history and violation history is still valid or the applicant must submit the appropriate update information.

3.CONTROL OF MINING OPERATION THROUGH CONTROL OF COAL TO BE MINED. Provide the information below for any person or entity who owns or controls the coal to be mined under this permit and who, by lease, sublease, or other contract: A. has the right to receive the coal after mining, or, B. has the authority to determine the manner in which the operator or permittee conducts surface coal mining operations. (USE ADDITIONAL SHEETS IN THE FORMAT BELOW IF NECESSARY) Name: See Part I, A, 1. Street Address: City: State: Zip: Mailing Address: City: State: Zip: Telephone Number: Social Security Number(Voluntary): - - Employer Identification Number: ASMC License#: Applicant: SHANNON, LLC Mine Name: SHANNON NO. 4 Permit Number: P-3959-01-16-S PART I, C

PART I C. PROPERTY OWNERSHIP, INTERESTS AND RIGHTS

1. OWNERSHIP OF PROPERTY TO BE MINED AND RIGHT OF ENTRY. INSTRUCTIONS: Show the property ownership boundaries of each parcel of land in the permit area on the permit map or an overlay of the same scale as the permit map. If the surface estate is severed from the mineral estate, show and describe the ownership of each estate separately. In the spaces below, identify:

1. Every current legal or equitable owner(s) of record (as found in a standard search of title) of the property; 2. The holders of record of any leasehold interest in the property; and, 3. Any purchaser of record under a real estate contract of the property.

Describe the basis of the applicant's legal right to enter and mine on all properties contained in the permit application. If the mineral estate has been severed from the surface estate, describe the basis of the legal right to enter and mine both the surface and mineral separately. Give the nature of such right (i.e. lease, deed, contract, etc.), where recorded, describe from whom, to whom, and the date executed, and whether that right is the subject of pending litigation. USE ADDITIONAL SHEETS IN THE FORMAT BELOW AS NECESSARY

Legal description of property or permit map symbol: VCLT (S)

Surface/Mineral/or Fee Simple (both): Surface Legal owner(s) of record: Valley Creek Land & Timber, LLC Address: 3544 Lorna Ridge Drive City: Hoover State: AL Zip: 35216 Holders of leasehold interest: Address: City: State: Zip: Purchasers under a real estate contract: Address: City: State: Zip: Description of right to enter or mine: See following and Attached Letter dated 02/22/16. Describe the type of document or conveyance, which grants the right of entry, disturbance or mining. Indicate from whom the right was acquired and to whom the right was granted. If the grantor of the right is not the owner(s) of property, identify all grantors and grantees of the right beginning with the owner(s) and ending with the permit applicant.

Describe Right Granted Granted Date Litigation of Entry (If deed, From: To: Granted: Pending? indicate where recorded): (Yes or No) If yes, explain. See Page 1a of 3 Applicant: SHANNON, LLC Mine Name: SHANNON NO. 4 Permit Number: P-3959-01-16-S PART I, C

PART I C. CONTINUED - PROPERTY OWNERSHIP, INTERESTS AND RIGHTS

a of 4

Describe Right of Granted Granted Date Litigation Pending? Entry (If deed, From: To: Granted: (Yes or No) indicate where If yes, explain. recorded): Special Warranty United States Steel RGGS Land & Mineral 2/26/04 No Deed Ltd., LP (“RGGS”) Jefferson Co., Alabama

Agreement with United States Steel RGGS 2/26/04 No Respect to Surface and Subsurface Use Lease RGGS Birmingham Coal & 10/13/04 No Coke Company, Inc.

Assignment Birmingham Coal Twin Pines Coal 6/30/05 No & Coke Company, Company, Inc. Inc. Assignment Twin Pines Coal Twin Pines, LLC 1/13/11 No Company, Inc.

Assumption by Twin Pines, LLC Shannon, LLC, a wholly 1/13/11 No Operating Subsidiary as sole Member owned subsidiary of and Owner of Twin Pines, LLC Shannon, LLC

Assignment and United States Steel Valley Creek Land and 2/27/14 No Assumption Timber, LLC (“Valley Agreement Creek”)

Statutory Warranty Deed United States Steel Valley Creek 8/27/14 No with Reservation and Grant of Easements recorded in Jefferson, Walker and Tuscaloosa Counties in Alabama Applicant: SHANNON, LLC Mine Name: SHANNON NO. 4 Permit Number: P-3959-01-16-S PART I, C

PART I C 1. (CONTINUED)

Part I C 1 Page 2 of 4

Legal description of property or permit map symbol: RGGS (M) Surface/Mineral/or Fee Simple (both): Mineral Legal owner(s) of record: RGGS Land & Mineral Ltd., LP; Attn: Mr. Bill Lawrence Address: 2000 Highway 33 City: Pelham State: AL Zip: 35124 Holders of leasehold interest: Address: City: State: Zip: Purchasers under a real estate contract: Address: City: State: Zip: Description of right to enter or mine: See following and Attached Letter dated 02/22/16. Describe the type of document or conveyance which grants the right of entry, disturbance or mining. Indicate from whom the right was acquired and to whom the right was granted. If the grantor of the right is not the owner(s) of property, identify all grantors and grantees of the right beginning with the owner(s) and ending with the permit applicant.

Describe Right of Granted Granted Date Litigation Pending? Entry (If deed, From: To: Granted: (Yes or No) indicate where If yes, explain. recorded): Special Warranty Deed, United States RGGS Land & 2/26/04 No Recorded in Jefferson, Steel Mineral Ltd., LP Walker and Tuscaloosa (“RGGS”) Counties in Alabama

Agreement with Respect United States RGGS 2/26/04 No to Surface and Steel Subsurface Use Lease RGGS Birmingham Coal & 10/13/04 No Coke Company, Inc. Assignment Birmingham Coal Twin Pines Coal 6/30/05 No & Coke Company, Inc. Company, Inc. Assignment Twin Pines Coal Twin Pines, LLC 1/13/11 No Company, Inc. Assumption by Twin Pines, LLC Shannon, LLC, a 1/13/11 No Operating Subsidiary as sole Member wholly owned and Owner of subsidiary of Twin Shannon, LLC Pines, LLC Assignment and United States Valley Creek Land 2/27/14 No Assumption Steel and Timber, LLC Agreement (“Valley Creek”) Statutory Warranty Deed United States Valley Creek 8/27/14 No with Reservation and Steel Grant of Easements recorded in Jefferson, Walker and Tuscaloosa Counties in Alabama Applicant: SHANNON, LLC Mine Name: SHANNON NO. 4 Permit Number: P-3959-01-16-S PART I, C

Legal description of property or permit map symbol: DCI (S) Surface/Mineral/or Fee Simple (both): Surface Legal owner(s) of record: Drummond Company, Inc. Address: P. O. Box 1549 City: Jasper State: AL Zip: 35502 Holders of leasehold interest: Address: City: State: Zip: Purchasers under a real estate contract: Address: City: State: Zip: Description of right to enter or mine: Describe the type of document or conveyance which grants the right of entry, disturbance or mining. Indicate from whom the right was acquired and to whom the right was granted. If the grantor of the right is not the owner(s) of property, identify all grantors and grantees of the right beginning with the owner(s) and ending with the permit applicant. Describe Right Granted Granted Date Litigation Pending? of Entry (If deed, From: To: Granted: (Yes or No) indicate where If yes, explain. recorded): Deed: 09/30/14 U. S. S. Corp. Drummond Co. Inc. 09/30/14 No Vol.: LR201417 Page: 14265 Jefferson Co.

Deed: 09/30/14 U. S. S. Corp. Drummond Co. Inc. 09/30/14 No Vol.: 38 Page: 202 Tuscaloosa Co.

Legal description of property or permit map symbol: U.S.S. (S) Surface/Mineral/or Fee Simple (both): Surface Legal owner(s) of record: U. S. Steel Corp. Address: P. O. Box 599 City: Fairfield State: AL Zip: 35064 Holders of leasehold interest: Address: City: State: Zip: Purchasers under a real estate contract: Address: City: State: Zip: Description of right to enter or mine: Describe the type of document or conveyance which grants the right of entry, disturbance or mining. Indicate from whom the right was acquired and to whom the right was granted. If the grantor of the right is not the owner(s) of property, identify all grantors and grantees of the right beginning with the owner(s) and ending with the permit applicant. Describe Right Granted Granted Date Litigation Pending? of Entry (If deed, From: To: Granted: (Yes or No) indicate where If yes, explain. recorded): Lease: U.S.S. Corp. Drummond Co., Inc. Pending No Applicant: SHANNON, LLC Mine Name: SHANNON NO. 4 Permit Number: P-3959-01-16-S PART I, C

Legal description of property or permit map symbol: EVERGREEN MINING, LLC (S) Surface/Mineral/or Fee Simple (both): Surface Legal owner(s) of record: Evergreen Mining, LLC Address: P. O. Box 621 City: Jasper State: AL Zip: 35502 Holders of leasehold interest: Address: City: State: Zip: Purchasers under a real estate contract: Address: City: State: Zip: Description of right to enter or mine: Describe the type of document or conveyance which grants the right of entry, disturbance or mining. Indicate from whom the right was acquired and to whom the right was granted. If the grantor of the right is not the owner(s) of property, identify all grantors and grantees of the right beginning with the owner(s) and ending with the permit applicant. Describe Right Granted Granted Date Litigation Pending? of Entry (If deed, From: To: Granted: (Yes or No) indicate where If yes, explain. recorded): Lease Evergreen Mining, Drummond Co. Inc. 05/16/12 No LLC

Legal description of property or permit map symbol: Surface/Mineral/or Fee Simple (both): Legal owner(s) of record: Address: City: State: Zip: Holders of leasehold interest: Address: City: State: Zip: Purchasers under a real estate contract: Address: City: State: Zip: Description of right to enter or mine: Describe the type of document or conveyance which grants the right of entry, disturbance or mining. Indicate from whom the right was acquired and to whom the right was granted. If the grantor of the right is not the owner(s) of property, identify all grantors and grantees of the right beginning with the owner(s) and ending with the permit applicant. Describe Right Granted Granted Date Litigation Pending? of Entry (If deed, From: To: Granted: (Yes or No) indicate where If yes, explain. recorded):

Applicant: SHANNON, LLC Mine Name: SHANNON NO. 4 Permit Number: P-3959-01-16-S PART I, C

PART I C. (CONTINUED)

2. OWNERSHIP OF SURFACE AND MINERAL LANDS CONTIGUOUS TO THE AREA TO BE MINED. INSTRUCTIONS: Provide the information below for the owners of record of all surface and mineral properties contiguous to any part of the proposed permit area.

USE ADDITIONAL SHEETS AS NECESSARY IN THE FORMAT BELOW

Name: Valley Creek Land & Timber, LLC Address: 3544 Lorna Ridge Drive City: Hoover State: AL Zip: 35216 Interest owned (Surface, Coal or Fee Simple): Surface Type of Interest (Owner, Lease, or Other): Owner

Name: RGGS Land & Mineral Ltd., LP; Attn: Mr. Bill Lawrence Address: 2000 Highway 33 City: Pelham State: AL Zip: 35124 Interest owned (Surface, Coal or Fee Simple): Coal Type of Interest (Owner, Lease, or Other): Owner

Name: U. S. S. Corp. Address: P. O. Box 599 City: Fairfield State: AL Zip: 35064 Interest owned (Surface, Coal or Fee Simple): Surface Type of Interest (Owner, Lease, or Other): Owner

Name: Drummond Company, Inc. Address: P. O. Box 1549 City: Jasper State: AL Zip: 35502 Interest owned (Surface, Coal or Fee Simple): Surface Type of Interest (Owner, Lease, or Other): Owner

Name: Evergreen Mining, LLC Address: P. O. Box 621 City: Jasper State: AL Zip: 35502 Interest owned (Surface, Coal or Fee Simple): Surface Type of Interest (Owner, Lease, or Other): Owner

Name: Address: City: State: Zip: Interest owned (Surface, Coal or Fee Simple): Type of Interest (Owner, Lease, or Other): Applicant: SHANNON, LLC Mine Name: SHANNON NO. 4 Permit Number: P-3959-01-16-S PART I, C

PART I C. (CONTINUED)

3. INTERESTS OR PENDING INTERESTS IN LANDS CONTIGUOUS TO THE PERMIT AREA. INSTRUCTIONS: Give the legal description of all lands contiguous to the permit area for which the permit applicant: 1. Holds an interest, 2. Holds an option, or 3. Has made a bid for ownership, lease or other interest. USE ADDITIONAL SHEETS IN THE FORMAT BELOW IF NECESSARY

Legal description:

SE/SE Sec. 34; SE/NE, SW/NE, NW/SE, NE/SE, SE/SE, SW/SE, NE/SW, SE/SW, SW/SW Sec. 35;

NW/NW, NE/NW, SE/NW, SW/NW, NW/SE, SE/SE, SW/SE, NW/SW, NE/SW, SE/SW, SW/SW

Sec. 36; Township 19 South, Range 6 West; NW/NW, NE/NW, SE/NW, SW/NW, NW/NE, NE/NE,

SW/NE, NW/SW, NE/SW, SW/SW Sec. 1; NW/NW, NE/NW, SE/NW, SW/NW, NW/NE, NE/NE,

SE/NE, SW/NE, NW/SE, NE/SE, SE/SE, SW/SE, NW/SW, NE/SW, SE/SW, SW/SW Sec. 2;

SE/NW, NW/NE, NE/NE, SE/NE, SW/NE, NW/SE, NE/SE, SE/SE, SW/SE, NW/SW, NE/SW,

SE/SW, SW/SW Sec. 3; SE/SE Sec. 4; NW/NW, NE/NW, SE/NW, SW/NW, NW/NE, NE/NE,

SE/NE, SW/NE Sec. 10; NW/NW, NE/NW, SE/NW, SW/NW, NW/NE, NE/NE Sec. 11; Township

20 South; Range 6 West; Jefferson County, Alabama; NW/NE, NE/NE Sec. 9; Township 20 South;

Range 6 West; Tuscaloosa County, Alabama

Describe the nature of the interest: Shannon, LLC has no interest in any contiguous lands except those which are owned or controlled by lease.

Legal description:

Describe the nature of the interest:

Legal description:

PART I D. PERMIT AREA INFORMATION

1. Term Information:

a. Date original permit or subsequent renewal expires: 03/19/17 b. Term of original permit or subsequent renewal: 5 years c. Requested term of this permit renewal: 5 years d. Sequence number of this renewal: 1

2. Give the legal description of the land upon which the applicant proposes to conduct surface coal mining operations. List each quarter-quarter section, section, township, range, and county. SE/SE Sec. 34; SE/NE, SW/NE, NW/SE, NE/SE, SE/SE, SW/SE, NE/SW, SE/SW, SW/SW Sec. 35;