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2.05.3 - OPERATION PLAN - MINE PLAN AREA <br />METHOD OF COAL EXTRACTION <br />Mining at the King I site was completed and the portals were sealed during <br />January, 2009. <br />MINE WORKINGS <br />Map King I-005 shows the existing mine workings within the current Permit <br />Area boundaries. Superimposed above the workings, the surface topography has <br />been drawn in for correlation purposes between the surface and the underground <br />workings. <br />MINING EQUIPMENT <br />No equipment is currently in use at the King I mine other than what is <br />occasionally used for surface reclamation and maintenance activities. <br />Water used for dust suppression is supplied by two wells. The location of the <br />wells is shown on Map King I-005. <br />STRUCTURAL CONSIDERATIONS OF THE MINE LAYOUT <br />King Coal workings were confined to the upper Menefee (A) coal seam of the <br />Menefee formation (Mesa Verde Group). The seam is about six feet in thickness. <br />The seam dips at a 3% grade to the Southwest. The strike of the seam is S 550 E. <br />For specific details of the local geology and information concerning adjacent rider <br />coal seam see Section 2.04.6. <br />For practical purposes the upper Menefee seam may be considered flat or <br />tabular with no rolling of seam. Consequently, the layout of the mine workings was <br />not dependent upon the steepness of the seam as it was upon the boundary lines of <br />the coal leases. The panels or mining sections were laid out as shown on Map King <br />I-005 to maximize the recovery of the lease coal. Most of the underground openings <br />or entries were driven along some given angle to the true dip to take advantage of the <br />property boundaries. This angle cannot be correlated to the cleat of the coal. The <br />tight cleat allowed the mine workings to be oriented without rib spalling problems <br />arising. In addition, the lack of ground water seepage allowed the workings to be <br />laid out without regard to drainage slopes. <br />The main structural consideration of the mine layout was the width of the <br />panels (number of multiple entries) and the width of the entries. A panel width of <br />250 to 300 feet with five entries proved satisfactory for development and pillar <br />extraction. This width allowed for room development upon retreat from the panel <br />during pillar extraction. Stresses due to overburden thickness were minimal <br />compared to deeper operating coal mines. Maximum over -burden cover does not <br />exceed 325 feet at any point, and the stress field seems to act in a vertical direction. <br />No ground forces other than vertical have been observed by inspection during <br />mining operations. No major faults or slip planes criss-cross the mine workings. <br />The width of the openings was limited to twenty feet for control of the immediate roof <br />(the thickness of the roof to the top of the resin bolting horizon). <br />PRODUCTION <br />Total production for 2008 was 239,778.36 tons. <br />GCC Energy, LLC <br />Section 2.05.3 <br />Page 1 <br />King I Mine <br />August 1, 2012 <br />RN -DIP <br />09 •A,'Or-2DJ 3 <br />