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Exploration Drill Holes The New Horizon Mine coal reserves are based on approximately 115 <br />boreholes drilled between the mid- 1980's and 2004. The bulk were drilled by Peabody Coal <br />Company in the 1980's with Western Fuels - Colorado (WFC) drilling about 55 holes from 1993 to <br />2004. Occasionally, WFC needs to drill infill holes within the existing array to make more certain of <br />its' reserve estimations concerning various mining parameters such as coal quality, coal and <br />overburden thickness, etc. WFC anticipates that from the year 2003 and onward such infill holes <br />will occasionally be needed. See Attachment 2.05.3(3) -10 for details. <br />Relocation of the CCC West Lateral Ditch <br />An agreement between the Colorado Cooperative Company (CCC) and Western Fuels Colorado <br />was reached in 2001 to install a primary 26" HDPE pipeline and a secondary 12" HDPE pipeline to <br />temporary divert and distribute approximate 38cfs of water to the lawful water share owners while <br />mining through the original West Lateral Ditch located within the permit boundary. After the land <br />was reclaimed, the same pipelines was reinstalled into the approximate original ROW of the <br />original open ditch. Gate valves and mechanical flow meters were installed at agreed upon <br />locations along the pipeline so each land owner could meter their shares of water out of one or the <br />other or both of the two main pipelines. It was decided and agreed upon that a big benefit of <br />keeping the pipelines as a permanent structure across the final graded reclamation was that <br />leakage of water from an open ditch through disturbed ground would be eliminated, plus it would <br />give the down stream water users some pressure to better irrigate their land with. As of 2007, the <br />28" & 12" HDPE pipelines had been permanently buried in their final resting place, which is <br />approximately in the same ROW as the original ditch. The CCC is happy with the work and as of <br />early 2010, a signed easement for the pipelines from each land owner needs to be filed. WFC is <br />working on this detail. All users seemed to be happy with the permanent installed pipeline. <br />A 12" HDPE pipeline, with three takeouts, will be installed along BB Road west of 2700 Road to <br />provide irrigation water for the Lloyd, Benson, Morgan, and WFC properties on that side of the <br />mine. <br />The location of the pipeline structure on Map 2.05.4 -5 is the permanent location. The design details <br />and historical information regarding the ditch relocation can be seen below. <br />(Revised June 2010) 2.05.3(3) -46 <br />