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2.04.6 <br />• <br />• <br />PR -12 <br />A ?PROVED <br />11 /1 Clio <br />Since gypsum is a relatively insoluble material, the acid produced by the <br />oxidation of pyrite would be effectively neutralized. <br />The contribution of organic sulfur to acidity is considered negligible since <br />organic sulfur is only slowly oxidized from the organic form to the sulfate form <br />and may be tied up in other organic forms almost immediately. Since no <br />inorganic sulfate exists in these drill hole samples, it too may be disregarded <br />with respect to acidity concerns. <br />Two drill holes from the B -2 Seam were cored and analyzed for forms of <br />sulfur. See Exhibit 6 for a tabulation of the laboratory reports and the <br />locations of the drill holes. The results of the analysis follows: <br />SULFUR FORMS B -2 SEAM <br />Sulfur Forms ( %) <br />Drill Hole <br />Pyritic <br />Organic <br />Sulfate <br />Total <br />BRL- IP -00 -66 <br />0.01 <br />0.48 <br /><0.01 <br />0.49 <br />GVB -DH7C <br />0.06 <br />0.48 <br /><0.01 <br />0.54 <br />The results of the geochemical analyses presented below indicates, by its <br />acid base potential, the B -Seam coal is not acid producing. <br />A sample of run of mine coal, from the nearby Bowie No. 1 Mine, was <br />analyzed to determine if the coal has sufficient lime to neutralize its acid <br />producing characteristics. The coal mined from the Bowie No. 1 Mine has a <br />carbonate equivalent of 0.22% which equates to 4.4 pounds per ton of coal <br />or 4,400 pounds of lime per 1,000 tons of coal. This means the coal <br />contains adequate lime to neutralize coal bearing 0.07% iron pyrite (4,400 <br />divided by 625). The laboratory report is presented in Volume III, Exhibit 6. <br />2.04-22- 07/10 <br />