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10M. <br />The D213 mine water transfer well was drilled and completed in late December 2004 in the <br />vicinity of the upper Elk Creek facilities area. When the drill penetrated the B Seam workings, it <br />was apparent that this portion of the B seam mine was flooded with water. The B seam was <br />encountered at the 5918' elevation and a static water level later appeared at the 6042' elevation. <br />Water transfer operations first began in early 2005 for D2B. During late 2011, the D213 water <br />meter failed and had to be replaced. During 2012, we estimate that 81 million gallons of water <br />was transferred. During 2013, with the sealing and later idling of the Elk Creek mine due to the <br />spontaneous combustion event behind the longwall no water was transferred during the year. <br />During 2014, the mine was still sealed and no water pumping. The water level remains at the <br />6051' elevation. In addition, since the floor of the historic Somerset B Seam Mine portal is at the <br />approximate 6090' elevation, there remains approximately 39' of elevation remaining before the <br />water could exit the mine at that location. <br />D2B2 <br />The D2132 borehole was completed in December 2005 in the vicinity of the Hubbard Fan. Water <br />transfer started during early 2006. The bottom 39' of the 338' borehole is uncased. The B seam <br />coal roof was encountered at 6046' elevation. After initial water transfer, initial water level was <br />encountered at 6053' elevation, or 7' above the coal. Subsequent measurements encountered an <br />apparent dry borehole obstruction at the 6070.7' elevation or 24' above the coal. The obstruction <br />has not precluded water transfer, but has limited the ability to lower the sounder past the <br />obstruction. During 2008, the sounder encountered more favorable conditions and a water level <br />appeared at the 6064' elevation. During 2008 the underground pumps ran very little. On October <br />12, 2008 the 13 West gate road was sealed, the Hubbard fan dismantled, the shaft sealed with <br />earthen materials and the western mining district sealed off. Pumping of water to D2132 was also <br />concluded. The reclamation and seeding of the Hubbard fansite was completed in early 2012. <br />Water Level (Elevation Ft.) <br />Date D2B <br />D2B2 <br />January 14, 2005 <br />6044.0 - <br />January 19, 2005 <br />6044.0 - <br />February 22, 2005 <br />6044.6 - <br />March 31, 2005 <br />6043.6 - <br />May 3, 2005 <br />6044.0 - <br />June 15, 2005 <br />6044.5 - <br />July 11, 2005 <br />6043.6 - <br />August 24, 2005 <br />6044.6 - <br />October, 17, 2005 <br />6045.0 - <br />April 19, 2006 <br />- 6053 <br />May 25, 2006 <br />6047 - <br />June 7, 2006 <br />- 6066.7 <br />July 26, 2006 <br />6047 6070.7 <br />October 17, 2006 <br />6045 - <br />16 <br />