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Twentymile Coal, LLC (TC) <br />Narrative <br />Lease by Modification Application Wolf Creek Reserve — April 2014 <br />Site Description <br />The proposed federal lease modification tract covering the Wolf Creek Coal Seam is located in: <br />Township <br />Range <br />Section <br />5N <br />86W <br />Section 21; N'/2, NI/2SEI/4, N'/2SWI/4SE1/4, NE'/4 SW'/4, N'/2 SEI/4SWI/4, <br />NWI/4SWI/4 <br />5N <br />86W <br />Section 22; NWI/4, NI/2SWI/4 <br />The proposed federal lease modification tract contains 760 acres, more or less. The area within the <br />proposed lease tract has been previously mined, with removal of coal from the Wadge Coal Seam, <br />and the associated surface areas are currently used as rangeland and wildlife habitat. <br />1. Maps <br />Refer to Maps Exhibit A, Plate 2 - Map23, Plate 3 Exploration Map, Plate 4 Bottom Structure <br />Map, Plate 5 Coal Thickness Map, Plate 6 Overburden Map, and Plate 7 Mine Plan Map, for <br />information on the following: <br />A. Topography <br />B. Natural Drainage Patterns <br />C. Physical Features <br />D. Existing Roads and Vehicular Trails <br />E. Utility Systems <br />F. Locations of Proposed Exploration Operations, including drillholes and seismic lines <br />G. Location of Proposed Mining Operations and Facilities <br />H. Location of Proposed Trenches, Access Roads, and Trails <br />2. Narrative Statement <br />A. Exploration Operations — Wolf Creek Reserve <br />The Wolf Creek Reserve was drilled prior to mining and while mining the Wadge seam in <br />the Eastern and Northern Mining Districts. Limited surface drilling was completed in 1998, <br />and an expanded program of underground drilling from the Wadge Seam workings down <br />through the Wolf Creek Seam was completed during the period 2002 through 2007. In 2013, <br />additional underground coreholes were drilled along the 5 Main North entries. In 2014 <br />twelve coreholes were drilled from the surface through the Wolf Creek Seam. All core <br />samples from these holes have been shipped to Standard Labs' Freeburg, Illinois facility for <br />testing and analysis, with splits from select cores being analyzed by ACZ Laboratories to <br />assess geochemical characteristics. <br />All drillholes have been drilled using a mud and/or an air rotary system. A conventional <br />WCR BLM Lease App Narrative 0414.docx Page 1 <br />