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Coyote Creek Mining Company, LLC is seeking re-authorization of its mining operations at the Coyote Creek Mine in Mercer County, North Dakota. Current operations are covered under Regional General Permit 11-01, which expires on August 31, 2017. The mine is located south of Beulah in Townships 142 and 143 North and Ranges 88 and 89. The mine area is approximately 8,400 acres, much of which is outside of Corps jurisdiction and in uplands. Mine operations are covered under North Dakota Public Service Commission (PSC) Permit NACC-1302. Approximately 62 acres of wetlands and other waters have been identified in the mine area and will be filled as a result of mine operations. The PSC requires all wetlands impacted by mine operations be reconstructed. The mine plans are specifically designed to: insure no net loss of wetland acreage, minimize the farming hindrance wetlands create, and maximize the wetlands wildlife value. Currently Coyote Creek Mine is developing temporal mitigation sites.

Coyote Creek Mining Company, LLC is seeking re-authorization of its mining operations at the Coyote Creek Mine in Mercer County, North Dakota. Current operations are covered under Regional General Permit 11-01, which expires on August 31, 2017. The mine is located south of Beulah in Townships 142 and 143 North and Ranges 88 and 89. The mine area is approximately 8,400 acres, much of which is outside of Corps jurisdiction and in uplands. Mine operations are covered under North Dakota Public Service Commission (PSC) Permit NACC-1302. Approximately 62 acres of wetlands and other waters have been identified in the mine area and will be filled as a result of mine operations. The PSC requires all wetlands impacted by mine operations be reconstructed. The mine plans are specifically designed to: insure no net loss of wetland acreage, minimize the farming hindrance wetlands create, and maximize the wetlands' wildlife value. Currently Coyote Creek Mine is developing temporal mitigation sites.

PUBLIC NOTICE Application No: NWO-2012-2475-BIS Applicant: Coyote Creek Mining Company, L.L.C.

US Army Corps of Engineers Omaha District

Waterway: Unnamed Wetlands Activity: Coyote Creek Mine Issue Date: July 28, 2017 Expiration Date: August 12, 2017

North Dakota Regulatory Office

1513 South 12th Street NOTICE OF PENDING PERMIT EVALUATION

15 Day Notice Bismarck ND 58504

Introduction. The District Engineer, U.S. Army Corps of Engineers District, Omaha, Nebraska, is evaluating a Department of the Army (DA) permit application from the Coyote Creek Mining Company for the proposed Coyote Creek Mine surface lignite mining operations. This is an existing mining operation currently permitted under Regional General Permit 11-01, which expires on August 31, 2017. Operations are anticipated to continue until the year 2040 and are located within Coyote Creek Mining Company, LLC's NACC-1302 mining permit approved by the North Dakota Public Service Commission. The application is being evaluated under Section 404 of the Clean Water Act [33 USC 1251, et seq.]. Section 404 regulates the discharge of dredged or fill material in waters of the United States. PUBLIC NOTICE. The purpose of this public notice is to inform the public; Indian Tribes; Federal, state and local agencies/officials; and other interested parties of a 15-day comment period in which written comments in conjunction with the applicant's project may be submitted to the US Army Corps of Engineers (Corps). Solicitation of comments regarding impacts to endangered species, historic properties, water quality, general environmental concerns and other public interest factors are discussed herein. Written comments must be postmarked by August 12, 2017, prior to closure of the public notice administrative record. PUBLIC HEARING. Before the expiration date of this notice, anyone may request, in writing, that a public hearing be held to consider this application. Requests shall specifically state the reason(s) for holding a public hearing. The District Engineer shall determine whether a hearing is necessary to obtain additional public interest information. If a public hearing is warranted, interested parties will be notified of the time, date, and location. Project Information. The project site is located south of Beulah, North Dakota, on State Highway 49 for approximately 6 miles; and then approximately 4 miles west on County Road 12; The Mine Area is located in within townships 142 and 143 North, Ranges 88 and 89 West, of the 5th Principal Meridian (P.M.), Mercer County, North Dakota. Please Note, the Corps is neither funding nor constructing the proposed project and has authority over only a very small percentage of the overall 8,400-acre project area. The majority of the project will be outside of Corps jurisdictional lands and in uplands, which are not regulated by Sections 404/10. PROJECT PURPOSE. The applicant's stated project purpose is "to mine coal reserves from the Upper Beulah Lignite Coal Bed, to provide combustible fuel to the Coyote Creek Station to produce electricity..." The Corps determined that the overall project purpose is to mine coal reserves.

PUBLIC NOTICE NWO-2012-2475-BIS

[Coyote Creek Mining Company, Coyote Creek Mine]

PROJECT DESCRIPTION. The applicant proposes to mine coal reserves from the Upper Beulah Lignite Bed. The Coyote Creek Mine surface lignite mining operations are anticipated to continue until the year 2040 and are located within Coyote Creek Mining Company, LLC's NACC-1302 mining permit approved by the North Dakota Public Service Commission. Approximately 62 acres of wetlands and other waters have been identified within the mine area and will be filled as a result of the project. Total acreage within the project area is approximately 8,400-acres. Corps jurisdiction on the 62-acres of wetlands/waters has yet to be determined. Coyote Creek Mine will use standard surface mining techniques to extract coal from the proposed project area. Mining operations will typically occur in a sequence of seven events: suitable plant growth material (SPGM) removal, overburden removal, coal removal, overburden replacement, final grading, SPGM replacement and re-vegetation. SPGM will generally be removed by tractor-scrapers, track-dozers and front-end loaders loading trucks. The SPGM will either be stockpiled in areas designated for topsoil/subsoil stockpiles, or will be directly respreads onto regraded areas. The SPGM stripping operation is generally scheduled for two shifts per day, four days per week. An annual soil handling plan presented to the North Dakota Public Service Commission each spring details specific soil stripping locations. Overburden removal includes the removal of any material between the SPGM and the mineable coal seam. Overburden removal is accomplished with the use of draglines, track-dozers, tractor-scrapers, front-end loaders and trucks or other auxiliary equipment. Once all overburden has been removed, the coal surface is cleaned with a track-dozer and subsequently ripped with the dozer's 10 foot shank to a size that can be most effectively loaded into the haul trucks. Coal will be loaded by a front-end loader and hauled by trucks. After coal is removed, overburden from the next pit is spoiled into the empty pit, and the mining operation evolves into a reclamation operation. Spoils grading will occur so that no more than four spoil peaks are standing at any one time, except in isolated instances. CONSTRUCTION METHODS. Typical mining machinery and equipment will be used for the project including, hydraulic shovels, front-end loaders, tractor-scrapers, truck dozers, draglines, etc... Proposed work will typically occur in a sequence of seven events: suitable plant growth material (SPGM) removal, overburden removal, coal removal, overburden replacement, final grading, SPGM replacement and re-vegetation. ANTICIPATED ENVIRONMENTAL IMPACTS. Wetlands and Other Waters of the United States. The worst case scenario would place direct fill into approximately 62 acres of wetlands. Wetland processes and functions will be affected by the surface lignite mining operations. Woodlands. No woodlands would be impacted. Grasslands. No grasslands would be impacted. COMPENSATORY MITIGATION. Coyote Creek Mine plans to reconstruct all wetlands impacted by mining including both those determined to be jurisdictional and non-jurisdictional to the Corps using wetland performance criteria in the latest version of the North Dakota Public Service Commission Standards for Evaluation of Revegetation Success and Recommended Procedures for Pre- and Post- Mining Vegetation Assessments. The plans are specifically designed to: insure no net loss of wetland acreage, minimize the farming hindrance wetlands create, and maximize the wetlands' wildlife value. Currently Coyote Creek Mine is developing temporal mitigation sites.

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PUBLIC NOTICE NWO-2012-2475-BIS

[Coyote Creek Mining Company, Coyote Creek Mine]

ALTERNATIVES. Three alternatives were analyzed including two action and one no-action. National Environmental Policy Act of 1969 ["NEPA"] (42 USC 4321 et seq.; Public Law 91190) NEPA Statement: NEPA is the Nation's basic charter for protection of the environment. NEPA is to provide decision-makers and the public full disclosure of the environmental consequences of taking an action so they can make informed decisions. NEPA itself does not impose substantive duties mandating particular results, but prescribes the necessary process for preventing uninformed agency action. Section 106 of the National Historic Preservation Act ["NHPA"] (54 USC 306108). Cultural Resources Statement: The Omaha District will comply with the NHPA and amendments and the procedures set forth in 33 CFR, Appendix C. We will evaluate input by Indian Tribes, the North Dakota State Historic Preservation Officer (SHPO), and any interested parties in response to this public notice. The Corps' initial review is that the project would not affect properties listed, or eligible for listing, on the National Register of Historic Places. Section 404(b)(1) Guidelines ["Guidelines"] (40 CFR 230 Subpart B): These Guidelines are the substantive environmental criteria used in evaluating the discharges of dredged or fill material in waters of the United States under Section 404 of the Clean Water Act and are applicable to all 404 permit decisions. The purpose of these Guidelines is to restore and maintain the chemical, physical, and biological integrity of United States waters through the control of discharges of dredged or fill material. Fundamental to the Guidelines is an understanding that dredge or fill material should not be discharged into such waters unless it is demonstrated that such discharges would not have unacceptable adverse impacts either individually or in combination with existing and/or probable impacts of other activities affecting the environment. Section 401 of the Clean Water Act ["Water Quality Certification"] (33 USC Section 1341) Water Quality Certification Statement: The North Dakota Department of Health, Division of Water Quality, 918 East Divide Avenue, Bismarck, North Dakota 58501-1947, will review the proposed project for State certification in accordance with the provisions of Section 401 of the Clean Water Act. The certification, if issued, will express the State's opinion that the project will not result in a violation of applicable water quality standards. Although water quality certification is a prerequisite for issuance of a DA permit, certification alone does not guarantee a DA permit will be issued for the project. Endangered Species Act of 1973 ["ESA"] (16 USC 1531, et seq.) Pursuant to the Endangered Species Act, the proposed project is being reviewed for impacts to threatened and/or endangered species and their critical habitat. This project is within the known range of the Interior Least Tern (E), Whooping Crane (E), Black-Footed Ferret (E), Gray Wolf (E), Piping Plover (T), Rufa Red Knot (T), Northern Long-Eared Bat (T) and the Sprague's Pipit (C). Critical habitat also exists for the Piping Plover within Mercer County. During the review process a "No Effect" determination has been made as there have been no listed species identified within the Corps action area. Public Interest Review [33 CFR 325.3(c)(1)]: The public interest review procedures call for weighing the benefits that reasonably may be expected to accrue from the proposed project. These are balanced against its reasonably foreseeable detriments and results in reaching a 3

PUBLIC NOTICE NWO-2012-2475-BIS

[Coyote Creek Mining Company, Coyote Creek Mine]

determination that expresses the public interest. Public interest factors include all factors which may be, or may become, relevant to this project, such as conservation, economics, aesthetics, general environmental concerns, wetlands, historic properties, fish and wildlife values, flood hazards, floodplain values, land use, navigation, shoreline erosion and accretion, recreation, water supply and conservation, water quality, energy needs, safety, food and fiber production, mineral needs, considerations of property ownership and, in general, the needs and welfare of the people. The decision whether to issue a permit is based on an evaluation of those factors and the probable impact, including cumulative impacts, and reflects the national concern for both the protection and utilization of important natural resources. The 404(b)(1) Guidelines and the Public Interest Review are both administrative processes required as part of the Regulatory Program, but they are independent of each other. A project must be in compliance with the Guidelines and must not be contrary to the public interest in order to be permitted by the Army Corps of Engineers. Anyone whose interests may be affected by the applicant's proposal is invited to submit favorable or unfavorable written comments to the U.S. Army Corps of Engineers [Omaha District] North Dakota Regulatory Office, 1513 South 12th Street, Bismarck, North Dakota 58504. Comments must be submitted on or before the date on the front of this notice to be considered in subsequent actions on this application. For additional information, you may contact Mr. Benjamin Reile, Project Manager, by e-mail at Benjamin.D.Reile@usace.army.mil or Patricia L. McQueary, Regulatory Program Manager, by e-mail at Patricia.L.Mcqueary@usace.army.mil, at telephone number (701) 255-0015, extension 2001, or by visiting the North Dakota Regulatory Office. Request to Postmasters: Please post this notice in a conspicuous place until the expiration date specified at the top of page one. Notice to Editors: This notice is provided for your use in developing news stories only. No payment for publication will be provided. ATTACHMENTS ­ (1 Total)

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NWO-2012-2475-BIS, Page 1 of 1

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