2014-05-29_PERMIT FILE - X201423601

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GCC Energy, LLC Legal Description The legal descriptions of the exploration drill sites are as follows: Sections 13, 14, 23, 24, of Township 35 North, Range 12 West and Sections 17, 18, 19, 20, and 30 of Township 35 North, Range 11 West Surface Topography Elevation within the exploration area ranges from approximately 7,500 feet to 8,700 feet. Spring Gulch borders the northern portion; East Alkali Gulch and Hay Gulch Irrigation Ditch borders the east, and Cherry Creek is several miles to the west. Several other named and unnamed canyons, gulches, and washes trend through the exploration area; resulting in terrain that varies from steep and rugged to gently sloping mesa tops. Geologic Features The principle geologic formation underlying the exploration area is the Cliff House Sandstone; other formations occurring in the exploration area include the Menefee Formation and Point Lookout Sandstone. Sandstone rock outcrops occur throughout the exploration area primarily as canyon walls. Surface Water Features The exploration area is bisected by several named and unnamed ephemeral and intermittent washes. Deadman Gulch and Spring Creek Gulch flow east to west and are located along the northern border of the proposed exploration area. West Roberts Canyon trends north to south and borders the eastern exploration area. East Alkali Gulch trends northeast to southwest and traverses through the middle of the exploration area. West Alkali Gulch bisects the western portion of the exploration area and trends north to south. Devils Canyon and Reservoir Canyon traverse the far western boundary and trends east to west. Drainage from the exploration area generally flows west, southwest towards Cherry Creek, located 0.5- mile west of the exploration area. All drainages are characterized as intermittent or ephemeral; several have stock ponds associated with them. Proposed drill holes would be located no closer than 200 feet from intermittent channels. No wetlands occur at any of the proposed drill site locations. Other Physical Features —Soils Soils occurring within the exploration drill sites are listed in Table 1. Table 1. Soils Characteristics at Proposed Exploration Drill Site Locations. Drill Location ID Soil Type Erosion Potential GCC 14 -01; GCC 14 -02, GCC -14 -13 Archuleta- Sanchez complex, 12 to Moderate water erosion, low wind 65% slopes erosion GCC 14 -03, GCC- 14 -09, GCC- 14 -10, Zau stony loam, 3 to 9% slopes Low water erosion, Low wind GCC- 14 -11, GCC- 14 -12, GCC- 14 -14, erosion GCC- 14 -16, GCC- 14 -18, GCC- 14 -19, GCC- 14 -20, GCC- 14 -21, GCC- 14 -23, GCC -14 -24 GCC -14 -04 Hesperus loam, 3 to 12% slopes Moderate water erosion, moderate wind erosion Federal Coal Exploration Plan May 2014 2