COMMONWEALTH OF PENNSYLVANIA BEFORE THE ENVIRONMENTAL HEARING BOARD

MOUNTAIN WATERSHED ASSOCIATION, Appellant,

EHB Docket No. 2017-004-L V.

COMMONWEALTH OF PENNSYLVANIA, DEPARTMENT OF ENVIRONMENTAL PROTECTION,

Appellee,

and

LCT ENERGY, L.P., Permittee.

STIPULATION OF SETTLEMENT

AND NOW, this 25th day of January, 2018, Appellant Mountain Watershed Association

("MWA") and Perrnittee LCT Energy, L.P., ("LCT") (collectively, the "Parties"), with the intent

of resolving the above-captioned appeal, enter into this Stipulation of Settlement ("Stipulation")

and agree as set forth below.

WHEREAS, MWA filed an appeal at the above-captioned docket on January 13, 2017

challenging the Department of Environmental Protection's ("DEP") issuance of the Rustic Ridge

No. I Mine ("Mine") Coal Mining Activity Permit #65131301 ("CMAP") and the National

Pollutant Discharge Elimination System ("NPDES") Permit 4PA023624I;

WHEREAS, the Parties have reached an amicable resolution of the appeal as described

in this Stipulation.

NOW THEREFORE, the Parties desiring to resolve this matter and intending to be

legally bound hereby, agree as follows:

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1. Coal barrier between Meicroft No. 3 and the Mine

a. One of the issues in the appeal relates to the size of the coal barrier

between an abandoned mine known as the Meicroft No. 3 Mine ("Meleroft No. 3") and the

proposed Mine.

b. The CMAP allowed for an 800 foot horizontal barrier between the Mine

and Meicroft No. 3.

C. The horizontal barrier between Meicroft No. 3 and the Mine will be

expanded from 800 feet (as provided in the CMAP) to 1400 feet.

d. LCT will submit a revised Coal Mining Activity Permit ("CMAP")

application to the Department of Environmental Protection to reflect the barrier change to 1400

feet. As part of the 1400 foot barrier, LCT will request that the CMAP permit boundary move

600 feet to the northeast from the Mekroft No. 3 Mine with an additional 800 foot buffer within

the new permit boundary.

e. LCT will install a piezometer completed in the Lower Kittanning coal

seam as identified in the CMAP within the 1400 foot horizontal barrier at a location to be

mutually agreed-upon between the Parties, assuming that LCT obtains reasonable access from

the owner of the property where the piezometer is to be installed. In the event that reasonable

access cannot be obtained, then the Parties will work to find a mutually agreeable location for the

piezometer. Such piezometcr shall be completed before coal removal from the mine commences

or, in the event that reasonable access cannot be obtained, as soon as possible after a mutually

agreeable location for the piezometer is found.

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f. After the piezometer is installed, LCT will conduct quarterly monitoring

of the water level in the barrier and will provide that data to MWA in an electronic format within

five business days after LCT receives the data or ten calendar days after sampling.

g. After the piezometer is installed, and when coal extraction at the Mine

reaches 2000 feet from the piezometer, LCT will conduct monthly monitoring of the water level

in the barrier and will provide that data to MWA in an electronic format within five business

days after LCT receives the data or ten calendar days after sampling.

h. After the piezometer is installed, and when coal extraction at the Mine

reaches 1000 feet from the piezometer, LCT will conduct weekly monitoring of the water level

in the barrier and will provide that data to MWA in an electronic format within five business

days after LCT receives the data or ten calendar days after sampling.

After the piezometer is installed, and when coal extraction at the Mine is

complete in the area of the Mine closest to that piezometer (within 2,000 ft), LCT will conduct

quarterly monitoring of the water level in the barrier until the Mine is sealed, and will provide

that data to MWA in an electronic format within five business days after LCT receives the data

or ten calendar days after sampling. MWA will have the option to maintain access to the

piezometer after the mine is closed.

2. Discharges from Outfall 003

a. The NPDES permit identified three outfalls (001, 002, and 003) for

discharges from the proposed surface treatment facilities of the Mine.

b. Outfall 003 is designed to pass a maximum discharge of 2.96 MGD, or

approximately 2,050 gpm; the 2,050 gpm maximum discharge is comprised of 1,500 gpm from

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the dewatering of the coal seam to facilitate mining, 150 gprn from the coal storage area sump,

and 400 gpm from the pit area sump.

C. LCT will limit the 1,500 gpm discharge through Outfall 003 associated

with the dewatering of the coal seam to a maximum of 1,000 gpm. Discharge from the coal seam

will not be routed through Outfall 001 or 002.

d. The permitted 150 gpm discharge from the coal storage area sump and the

400 gpm discharge from the pit area sump, which are caused by precipitation influences, will

remain unchanged.

C. LCT will relocate Outfall 003 downstream of its current permitted location

to a point just prior to its confluence with Champion Creek.

3. Discharge Water Quality

a. Within 20 days of the execution of this Stipulation, LCT will provide to

MWA its treatment plans and/or assumptions regarding how LCT expects to meet its NPDES

effluent limits related to Outfall 003.

4. Mine Ventilation Fan

a. LCT will expand the pit to accommodate development of the three slopes.

and install the Mine ventilation fan in the pit. This will eliminate the need for the fan shaft and

return shaft.

b. LCT will use a variable frequency fan.

C. When developing the slopes, LCT will utilize auxiliary fans that will be

located primarily underground during slope development. LCT will make commercially

reasonable efforts to minimize noise from the auxiliary fans.

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5. Blasting

a. LCT will limit its Peak Particle Velocity (PPV) to 1.0 inch per second.

b. LCT will limit its air blast to 126 decibels.

C. LCT will provide MWA with its shot reports after each blast within five

business days of LCT's receipt of the shot reports and associated seismograph readings.

d. LCT will provide MWA with an electronic copy of the approved blast

plan.

e. Prior to and throughout blasting, LCT will install, maintain, and ensure the

proper functioning of a seismograph at the home closest to the blasting area, provided that LCT

can obtain reasonable access from the property owner. If LCT cannot obtain reasonable access,

LCT will place, maintain, and ensure the proper functioning of the seismograph at the above-

ground Mine permit boundary nearest to the home closest to the blasting area. MWA may

inspect and document the set-up of the seismograph and LCT will provide notice to MWA to

observe the installation.

f. MWA and LCT mutually agree to utilize Wampum Hardware for

installation and readings of the seismograph.

g. LCT agrees to provide telephonic notice within a reasonable time prior to

each blast to those residents who live within one half mile of the blast area whose names and

phone numbers have been provided to LCT by MWA.

h. LCT will work to identify residents who did not receive pre-blasting

survey notices within 1/2 mile of the Mine because of relocation or death, including the list

provided by MWA, and send the pre-blast notice to the identified residents.

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6. Information Provided to MWA

a. LCT will provide MWA with each paper copy of its six month Mine map

after it has been accepted by the DEP.

b. LCT will provide MWA with an electronic copy of its hydrologic

monitoring reports and discharge monitoring reports at the same time that they are provided to

DEP.

C. LCT will maintain pumping rate documentation associated with the

dewatering of the coal seam, to be provided to MWA on a monthly basis.

7. Lihtinn

a. With respect to on-site lighting at the Mine, LCT will provide canopy

lighting and dark-sky lighting, to minimize light spillage and as acceptable to the Mine Safety

and Health Administration and DEP.

8. Trees

a. LCT will pay for trees up to a total of $7,500 (not including labor) to be

located where mutually agreed between LCT and MWA and not to interfere with LCT's Mine

operations.

9. Wells

a. LCT will update its property search, test all groundwater supplies

previously unidentified, test all wells previously labeled unidentified or unknown, and update

Form 8.3 (Groundwater Inventory) in Module S of the CMAP.

b. As part of its update of the groundwater inventory, the DEP has issued

Procedures for Establishing the Quantity of Water in Low-Yield Wells, Document Number 663-

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2112-606, dated November 28, 2009 ("Technical Guidance Document"), which contains options

for testing low-yield wells that are inaccessible for water level measurements.

C. During pre-blasting and pre-mining surveys, with respect to the

inaccessible wells described in the Technical Guidance Document, and to the extent reasonably

practical, LCT agrees to uncover the well head in order to perform a specific capacity test, water

quality test, and to gather other pertinent information (provided that LCT can obtain reasonable

access from the owner of the well), even though that is not required in the Technical Guidance

Document. The resulting updates to the groundwater users inventory in Module 8 will be

provided to MWA upon submission to the DEP.

10. Subsidence Control Plan

a. Module 22 of the CMAP provides that "[i]n the mains and submains, the

entry and cross cut widths are proposed to be a minimum of 16 feet, on average 20 feet, and a

maximum of 22 feet in the belt entries where track is proposed."

b. LCT agrees that the size of the entry and cross cut widths will be a

maximum of 20 feet in all entries and cross cuts.

11. Additional Agreements

a. LCT shall submit all applications or submittals to the DEP necessary to

perform LCT's obligations set forth in this Stipulation.

MWA will withdraw the above-captioned appeal with prejudice within

five days of the execution of this Stipulation.

C. MWA agrees not to challenge or appeal any permit modifications or other

permitting actions or authorizations required by or resulting from this Stipulation or to

participate in any such challenge or appeal.

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d. With respect to all communications concerning this Stipulation:

i. All written correspondence to MWA shalt be addressed to:

Beverly Braverman, Executive Director Mountain Watershed Association 1414 Indian Creek Valley Rd. Meicrofi, PA 15462

ii. All electronic correspondence to MWA shall be addressed to: mwa@mtwatershed.com

iii. All written correspondence to LCT shall be addressed to:

Mark Tercek, President LCT Energy, L.P 938 Mt. Airy Drive, Johnstown, PA 15904

iv. All electronic correspondence to LCT shall be addressed to: mark.terceklctenergy.com

e. This Stipulation constitutes the entire agreement between the Parties, and

no alterations, additions, or amendments shall be valid unless mutually agreed to by the Parties

and set forth in writing and duly executed by them.

E The Parties agree to bear their respective attorney's fees, expenses, and

costs associated with this matter, and to not seek costs or fees from any party to the above-

captioned appeal.

g. By their signatures below, the Parties consent to the terms of this

Stipulation and represent that they are authorized to execute the Stipulation on behalf of the

respective party.

h. This Stipulation may be executed by the Parties in any number of

counterparts, each of which shall be deemed an original and all of which, when taken together,

shall be deemed to constitute one and the same instrument.

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MOUNTAIN WATERSHED

LCT ENERGY, L.P. ASSOCIATION

By:

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Title: ' p1ZE5JJ74FA-)7

By: fiiL -

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