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2.04.6 Geology Description <br />Unconformably overlying the Hunter Canyon formation is the Paleocene <br />Wasatch Formation, which consists of buff to white, medium to coarse <br />grained, occasionally massive cliff forming sandstones and a few <br />interbedded shales. <br />The Quaternary alluvium beds occupy the valley floors and consist of <br />unconsolidated clay and sand. The colluvium features result from the <br />landsliding of oversteepened slopes. These features can significantly <br />impact the continuity of the coal seam. <br />STRUCTURE <br />The lease block lies northeast of the Garmesa Anticline which lies on the <br />extreme southwest flank of the Piceance Basin. Regional dip is between 2 <br />and 3 degrees northeast into the basin. Within the McClane Canyon <br />Permit area is a northeast -southwest trending graben. The graben is <br />bounded by two high angle normal faults (See Figures 2.5-2, 2.5.3) both <br />with vertical displacement at the Cameo coal seam of approximately 100'. <br />The McClane Canyon Portal enters the Cameo seam at the western <br />boundary of the graben. The true graben width at the portal is <br />approximately 1500'. <br />Northeastward from the portal, the eastern fault trends about North 380 <br />East as defined from mining, drill holes, and surface exposures. The <br />western fault appears more nonlinear; possibly fragmenting into multiple <br />smaller faults. Indication of the graben widening to the northeast is derived <br />from a northwesterly driven probe driven from a point 2600 feet northeast <br />of the portal. The probe failed to intersect the fault at the anticipated <br />location, and was abandoned because of poor mining conditions. South of <br />the portal the status of both faults is unclear. <br />There are recoverable reserves adjacent to the graben on the western, <br />upthrown side. The block's western boundary would be the outcrop on the <br />east side of East Salt Creek canyon. The extent of recoverable reserves <br />between the graben and the outcrop is undetermined, because burned <br />outcrop to the west and the undetermined location of the fault to the east. <br />PR -02 2.04-9 08/11 <br />