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Twentymile Coal, LLC (TC) <br />Narrative <br />Lease by Modification Application Wolf Creek Reserve — April 2014 <br />coring system was used to take spot cores. The drillholes (drill logs, geophysical logs, and <br />core analyses) are being used to delineate and characterize the Wolf Creek Reserve and to <br />further define coal quality, coal and overburden physical and chemical characteristics, and <br />any structural constraints within the Wolf Creek Reserve. Refer to the Plate 3 map for the <br />locations of the drillholes with respect to the mine plan and proposed coal lease modification <br />area. <br />B. Proposed Mining Method — Wolf Creek Reserve <br />Mining Sequence - The Wolf Creek Coal Seam contained within the proposed lease <br />modification tract will be accessed through TC's existing Foidel Creek Mine by driving <br />declining rock -slope ramps down from the Wadge Seam to the Wolf Creek Seam. The <br />location of the proposed lease modification area in relation to the existing mine workings is <br />shown on Exhibit A and the various Plate Maps. Given the location and limited extent of the <br />Wolf Creek Reserve, the configuration of the existing Wadge Seam mine workings, and TC's <br />existing mine infrastructure, TC submits that the unleased federal reserves in the Wolf Creek <br />Seam can only be economically recovered through TC's existing Foidel Creek Mine. <br />Development of the Wolf Creek Reserve will involve driving the access slopes and <br />developing the connecting main entries and the first longwall panel gateroads. Included with <br />this development is the construction of necessary coal handling conveyors and ventilation <br />devices to support the mining and transportation of the raw coal to the existing coal <br />preparation facilities via existing infrastructure. Other services including; compressed air, <br />process water supply, emulsion water supply, high voltage power, AMS monitoring, tracking <br />and communications lines will all be advanced from the Wadge workings through the rock <br />slopes to the Wolf Creek workings. <br />The reserve will be developed as a longwall mine. Development of the mains and longwall <br />panel gateroads will be accomplished with continuous miner units using standard <br />underground equipment (continuous miner, shuttle cars, roof bolter, belt feeder and <br />conveyors). A longwall system will be used to extract the longwall panels. The panels will <br />be approximately 985 feet wide, with variations due to the grade across the face and range <br />from 9,700 to 14,400 ft. in length. The existing Twentymile longwall system consisting of <br />one -hundred forty-two 2 -meter line shields and eight 1.75 -meter gate shields, 1,335mm <br />armored face conveyor, 1,570mm stage loader, Joy 7LS5 shearer and Kamat emulsion pumps <br />will be used. <br />Anticipated Production Rates — The planned production rate is 5.3 million tons per year, and <br />may be adjusted up or down dependent on market and transportation conditions for Colorado <br />coal. On an annual basis, approximately 85-90 percent of the yearly production will be from the <br />longwall, with the remaining 10-15 percent from continuous miner mains and gateroad <br />development. <br />Manpower - The manpower requirements for the proposed Wolf Creek operations are <br />WCR BLM Lease App Narrative 0414.docx Page 2 <br />