Surface Mine Data Package for Future Redevelopment

Site: PVR Partners Fourmile Surface Mine Operations State Route 94 near Hernshaw, Kanawha and Boone County, WV

Contacts: Rachel Lester, Energy Development Specialist West Virginia Division of Energy Office of Coalfield Community Development rachel.a.lester@wv.gov 304.957.2000 Dennis Jarvis, II, Director Upper Kanawha Valley Economic Development Corporation 326 Third Avenue Suite 307 Montgomery, West Virginia 25136 dennisjarvis2@gmail.com 304.981.6400 George Carico, Environmental Manager Marshall University – WV Brownfields Assistance Center One John Marshall Drive Huntington, West Virginia 25755 carico@marshall.edu 304.696.5456 Matthew Griffith, PE Mining Engineer PVR Partners, L.P One Carbon Center, Suite 100 Chesapeake, West Virginia 25315 mgriffith@pvrpartners.com 304.949.5630

Property Location / Owner: The Fourmile surface mine site is located in the upper Kanawha Valley area, in southern Kanawha / northern Boone County near State Route 94 and the community of Hernshaw. The property is approximately ten miles east of Charleston / Kanawha County, a few miles south of the towns of Chesapeake and Marmet. The entire property is owned by PVR Partners. A site map is provided in Attachment A. Site photos are provided in Attachment B.

Property overview The Fourmile surface mine site provides in excess of 10,000 acres for development and investment. Sections of the property are currently being mined, however, extensive tracts are in the reclamation stages; some reclamation has been completed. This property is a unique development opportunity as it has close access to two interstate systems; Interstate 77 and 64. The Kanawha River is located in close proximity to the area, approximately 5 miles north. The property has access to infrastructure, including water, sewer, and electric. There is a series of

existing haulage roads connecting the property that exceed or meet standards set by the West Virginia Department of Highways for industrial access roads. Water/Sewer: Water and sewer service is provided to parts of the area by West Virginia American Water and the Chelyan Public Service District, offering an eight inch water line and a six inch sewer line. Electric Service: Appalachian Power Company provides electric service to the property and three phase power is available on-site. Natural Gas: The site is not currently serviced by a natural gas provider. Natural gas well are located on the property. Transportation: The property has access to WV Route 3 and is accessible to US Interstates 77/64 via State Route 94. Commercial air service is available within ten (10) miles via Yeager Airport in Charleston, West Virginia. The airport provides service via:  United Airlines  US Airlines  Delta  Spirit The property has access to rail service via CSX Transportation. The property is also located within five to ten miles of barging and docking facilities on the Kanawha River. The Kanawha River has a series of lock and dams at London, Marmet, and Belle. These lock and dams are operated by the U.S. Army Corps of Engineers to control water levels to maintain river traffic. Transportation of coal, aggregate, and chemicals on the Kanawha River is provided by various entities, including Amherst Madison fleet service. Kanawha River Barging facilities: The Kanawha River offers several opportunities for bargaining facilities providing the potential investor with additional transportation opportunities for the transportation of product. There are multiple locations close to the property location that offer barging facilities: Quincy Dock: Operated by Kanawha River Terminals Riverpoint Dock, LLC, located in Marmet: Operated by River Trading Company Mammoth Coal load out: Operated by Alpha Natural Resources

Area Economic Conditions: The Upper Kanawha Valley has a history of being a sustainable economy base on industry like manufacturing, coal mining, and other minor sectors. Unfortunately, in recent decades the trend has been changing and there has been a decline in employment. The region has lacked growth

in emerging industry sectors. Recent data reflecting the largest employers in the region are industry sectors such as: retail, government, health care, and corrections. Kanawha County Economic Profile - In 2012 the top ten employers for Kanawha County included: 1. Charleston Area Medical Center 2. Kanawha County Board of Education 3. Herbert J. Thomas Memorial Hospital 4. Wal-Mart 5. West Virginia Department of Highways 6. Kroger Company 7. City Of Charleston Municipal Government 8. West Virginia Department of Health and Human Services 9. United States Postal Service 10. St. Francis Hospital The average wage rate in 2012 for Kanawha County was $42,704.00. West Virginia Workforce reports the following employment data for Kanawha County during the period of 2006-2012: 2006 Unemployment rate 4.0% 2007 Unemployment rate 3.7% 2008 Unemployment rate 4.5% 2009 Unemployment rate 3.4 % 2010 Unemployment rate 7.1 % 2011 Unemployment rate 7.0 % 2012 Unemployment rate 6.4%

Potential Site Uses The location is ideal for multiple investment opportunities in several industrial sectors and could be utilized for some of the ten targeted industrial sectors of the West Virginia Development Office. The ten sectors are:          Advanced Energy Aerospace Automotive Biometrics Biotech Business Services Chemicals and Polymers Specialty Metals Tourism Development

Wood Products

The Upper Kanawha Valley currently has investments in several of these targeted sectors. Specifically the region has been successful in developing and securing investment in the following industrial sectors:     Specialty Metals Chemicals and Polymers Wood Products Energy Sector

The regional economy is developed on these sectors and cluster approach. The additional investment and expansion opportunities for the growth of the Specialty Metals; Chemicals and Polymers; Wood Products; Energy Sector has the potential to provide additional employment and tax revenue for the region. The following is an outline of the possible cluster based developments that could occur with the Fourmile site: 1. Chemicals and Polymers, The DuPont plant at Belle, West Virginia, is expanding and adding capacity and has seen the additional investment of support companies at their operations in the last two years. Kureha PGA grand opening was held Monday, Sept. 26. The new Kureha PGA polymer plant is located at the DuPont site in Belle, W.Va. The specialty plastics facility is dedicated to the production of polyglycolic acid (PGA), a high performance polymer. The plant conducted its initial operation in mid-June 2011 and began commercial production in August. It is expected to produce 8.8 million pounds of PGA per year. The growth of the chemical industry in the region is apparent and additional sites are needed to offer the expansion and investment to move forward. Additionally the Montgomery campus of Bridgemont Community and Technical College has a two year degree and one year certificate program for chemical process operators that is training and developing the required workforce for the pending growth. 2. Energy Sector: The Upper Kanawha Valley has long been a leader in the energy sector. In addition to extensive coal mining and natural gas extraction, renewable energy, with two active hydro units and the new investment of Brookfield Hydro eastern operations at the Upper Kanawha Valley Community Technology building located in Montgomery, drive  the  area’s  energy  sector. The property has sufficient resources to develop an energy park. 3. Specialty Metals: The Upper Kanawha Valley has several operations that have a current investment in this industrial sector. Namely West Virginia Alloys; West Virginia Manufacturing  Solutions;;  and  Gould’s  Pumps.  

4. Wood Products: There are several operations in the region that support the wood products industry; the site would provide suitable locations to develop a single or multiple sites for the expansion of operations within this sector. 5. Recreational use: The property has potential to provide recreational opportunities for the region offering an expansion of existing faculties at Kanawha State Forest, located directly northwest of the property. Kanawha State Forest is in close proximity to the heavily populated Kanawha Valley and is a recreational haven. Some of the state's most popular picnic areas are here, along with significant hiking, mountain biking, horseback riding and cross-country skiing opportunities. The  forest  offers  some  of  West  Virginia’s   best special hikes in winter, spring and fall. A playground attracts families during the summer season and the fully equipped campground is one of the few in the Charleston area. The 9,300-acre forest is noted among naturalists for its diverse wildflower and bird populations. Rich cove forest sites provide nesting habitat for 19 species of wood warblers, a feature which draws birders from as far away as Canada. Another potential recreational use of the property is an off-road 4x4 park and/or ATV/UTV trails system. The Hatfield McCoy Trail ATV/UTV trails system, combined with their newly opened 4x4 off-road park located south of Charleston on Corridor G, has provided significant growth in the recreational industry in southern WV. The Hatfield McCoy Trails is looking to expand their trails system in Kanawha County and possibly construct at least one additional off-road 4x4 park. The property location would offer an ideal location for their expansion needs.

Miscellaneous Solar Energy Resource Potential – The National Renewable Energy Laboratory (NREL) provides an on-line  solar  energy  production  calculator,  called  “PV  Watts”,  a  map-based interface performance calculator for grid-connected photovoltaic systems, which estimates monthly data output and yearly estimates (http://rredc.nrel.gov/solar/calculators/PVWATTS/version1/ ). An annual performance estimate of 4.35 kWh/m2/day (annual solar radiation average) is calculated for the region, using data from the closest available location (Charleston, WV). The highest averaged monthly solar radiation estimate is 5.34 kWh/m2/day (August); lowest averaged monthly solar radiation estimate is 2.37 kWh/m2day (December). These estimates are based on industry averages for solar panel output and fixed-axis support with normal operating losses; higher energy performance estimates may be realized using higher output solar panels, higher efficiency controls and/or rotating axis equipment. A summary of solar energy calculation tables, including estimated energy values, are provided in Appendix C. The site has multiple acres of flat to gently rolling areas with minimal shading (i.e. no buildings or obstacles) that would shade solar panels and reduce solar energy collection. There are several excellent areas for potential photovoltaic energy collection system installations.

Wind Energy Resource Potential – AWS TruePower™  Wind  Data  has  calculated  annual  wind   speeds at 80 meter above surface elevations for the State of West Virginia. This height is generally accepted as a standard for evaluating wind energy potential. In this particular area, wind speeds on the ridgelines where the highest wind speeds are expected to be encountered, are estimated at less than 4.5 to 5.0 meters/second. These estimates are well below largescale wind energy development, as current wind farms in WV are operating in annual wind speeds of approximately 6.5 meters per second and higher. Commercial-scale wind energy generation is not likely for this site. Bio-Mass Production - A number of sites similar to this area are currently being researched for the potential of raising/harvesting biomass energy crops. Possible biomass crops include switchgrass, miscanthus, and max arundo (giant reed). Hybrid tree plantings for fast growth and harvest are also being evaluated. Tree plantings using modified reclamation approaches, including Appalachian Regional Reforestation Initiative methods (www.ari.osmre.gov) using minimal soil compaction during reclamation, are being researched and evaluated on similar types of reclaimed surface mined properties. As additional research is conducted, bio-mass production on sections of this property could prove beneficial.

Attachment A

Attachment B Fourmile Surface Mine Property Photos

Multiple areas of flat land with a road network are located on the Fourmile property

Example of one of the flat land sections of the Fourmile property available for development

Road network with accommodating grades exist across the property

Another view of the significant flat land areas available on the property

Attachment C Solar Energy Resource Calculations
Solar Energy Calculations, Charleston, WV area (based on NREL PV Watts Calculations)

Station Identification
City: State: Latitude: Longitude: Elevation: Charleston West_Virginia 38.37° N 81.60° W 290 m Month 1 2 3 4 4.0 kW 0.770 3.1 kW Fixed Tilt 38.4° 180.0° 5 6 7 8 9 10 11 9.0 ¢/kWh 12

Results
Solar Radiation
(kWh/m 2/day)

AC Energy
(kWh)

Energy Value
($)

3.01 3.44 4.51 5.13 5.20 5.24 5.34 5.30 4.93 4.46 3.15 2.37

290 291 412 443 454 431 451 442 409 400 280 223

26.10 26.19 37.08 39.87 40.86 38.79 40.59 39.78 36.81 36.00 25.20 20.07

PV System Specifications
DC Rating: DC to AC Derate Factor: AC Rating: Array Type: Array Tilt: Array Azimuth:

Energy Specifications
Cost of Electricity:

Year

4.35

4527

407.43

West  Virginia  Division  of  Energy Office  of  Coalfield  Community   Development
The  Office  of  Coalfield  Community   Development  (OCCD)  was  created   during  the  1999  legislative  session  to   assist  communities  affected  by  sur-­ face  mining  activity  throughout  the   state. Legislation  became  effective  June   11,  1999,  and  the  OCCD  became   operational  July  1,  2000. In  July  2007,  the  OCCD  became  part   of  the  West  Virginia  Division  of  Ener-­ gy,  under  the  West  Virginia  Depart-­ ment  of  Commerce.

Office  of  Coalfield   Community   Redevelopment

Surface  Mine  Property   Information  Package  for   Future  Development
Fourmile  Surface  Mine   State  Route  94  near   Hernshaw Kanawha  and  Boone County,  WV

Mission:
The  mission  of  the  OCCD  is  to  identify   and  assist  communities  affected  by   surface  mining  activities    to  develop   plans  for  long-term  economic  viability   after  mining.

West  Virginia  Division  of  Energy     Office  of  Coalfield  Community   Development 1900  Kanawha  Blvd.,  East Capitol  Complex,  Building  6,   Room  645 Charleston,  WV    25305-0311 304/957-2000 1-800-982-3386

Prepared  in  partnership  with  Marshall  University’s   Center  for  Environmental,  Geotechnical  and   Applied  Sciences and The  West  Virginia  Brownfields  Assistance  Center   at  Marshall  University

Potential  Reuse  Options:
Future  Energy  and  Related  Development:

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Solar  Photovoltaic Biomass  Production Energy  Parks

Partnering  Opportunities:
As  coal  mining  operations  have  ceased,   many  mined  areas  have  been  reclaimed,  or   are  nearing  reclamation  completion.    PVR   Partners  is  interested  in  evaluating  and  en-­ tertaining  multiple  property  redevelopment  

Industrial  /  Commercial  Use:

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and  re-use  options.    PVR  Partners  has  been  
in  discussions  with  the  Upper  Kanawha   Valley  Economic  Development  Corporation   on  property  re-use  options.

Large-scale  Warehousing Large  Scale  Industrial  Park  Complex Industries  with  large  footprint  needs Large  scale  equipment  repair  and         storage

Fourmile  Surface  Mine  Operations,   Kanawha  /  Boone  County,  WV
Site  Details:  Over  10,000  acres,  mostly  at  completed   stages  of  reclamation  process;;  road  network   throughout Electric  on-site  provided  by  Appalachian   Power  Company Water  and  sewer  utilities  provided  by  West   Virginia  American  Water;;  Eight-inch  water-­ line  and  six-inch  sewer  line  services  area Rail  Service  to  Area  Provided  by  CSX

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Contacts: Rachel  Lester,  WVDOE,  OCCD                                 304/957-2000 Matthew  Griffith,  PVR  Partners                       304/949-5630 Dennis  Jarvis,  Upper  Kanawha  Valley  Eco-­ nomic  Development  Corporation                 304/981-6400 George  Carico,  Marshall  University/WV   Brownfields  Assistance  Center                     304/696-5456

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Several  flat  areas  in  final  stages  of  reclama-­ tion;;  some  flat  areas  complete
Close  proximity  to  recreational  activities,   including  Kanawha  State    Forest  and           Kanawha  River Property  owned  entirely  by  PVR  Partners;;   property  for  sale  and/or  lease  options

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