Luna Three, known by its denizens as "Cold Hell", is a Colonial prison and labor camp. It is one of the most notorious prisons for the Twelve Colonies, consisting of some 1300 people, 1100 of whom are prisoners.
In existence for at least two decades, the moon-bound labor camp is completely self-enclosed, as conditions outside of the environmentally controlled buildings are harsh. It is divided into two main facilities: the mining facility, where the prisoners (called "stumps") work, and the main building that houses the cells and other areas.
Thirteen years prior to the Fall of the Colonies, Benedict Mason, Duby, and Tom Zarek are sent here along with nine other prisoners from the Tauron prison run by Dr. Sara Freeman. At the time, Warden Purdue is the official overseer at the time of Zarek's incarceration, however the prison was mainly run by the inmates underneath one powerful prisoner.
When Zarek arrives, he is beaten by fellow prisoners at the behest of Purdue, thus serving as a lesson of the brutality one may experience on Luna Three. Later, Zarek is brought to Jason Melton, who is the leader of the prisoners. However, that leadership is short-lived as Zarek ascends to that position, thanks to Nixon Kinlow who kills Melton.
As part of a subsequent arrangement between Zarek and Purdue, an increase in education programs, better food, and a higher standard of medical care is implemented (Battlestar Galactica: Zarek 3).