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SOUTH MT. GUNNISON FUEL LEASE AREA <br />EXPLORATION <br />Section 2.02.2 <br />(1) Included below and attached is MCC's and AL's written notice of its intention to <br />conduct limited exploration (i.e. up to two exploration holes) on MCC's Mt. <br />Gunnison Fuel fee lease. <br />(2) <br />(a) Kathleen Welt <br />Mountain Coal Company, LLC <br />West Elk Mine <br />5174 Highway 133 <br />Somerset, CO 81434 <br />(970) 929-2238 <br />(b) Casey Smith Michael Peacock <br />Mine Geologist Mine Engineer <br />Ark Land LLC Mountain Coal Company, LLC <br />West Elk Mine West Elk Mine 5174 Highway 133 <br />5174 Highway 133 5174 Highway 133 <br />Somerset, CO 81434 Somerset, CO 81434 <br />(970) 929-2246 (970) 929-2301 <br />(c) MCC plans to drill up to two (2) exploration holes to determine the characteristics of <br />the E seam and the over- and underlying geologic structures in that area. The proposed <br />exploration activities will be conducted on previously disturbed areas of an existing <br />unimproved road that is within the area labelled as the "area of exploration" on the attached <br />map. This area is located on MCC's surface lands, just south of MCC's current permit <br />area, within the NE'/4 NE'/4 of Section 16 and the NW'/4 NW'/4 of Section 15, T14S, <br />R90W, 6t" PM. <br />The holes will be rotary drilled to about 400' - 800' in depth and will be cased through <br />the upper 50' of unconsolidated material. If insufficient data result from the first hole, <br />then MCC will drill a second hole within the area shown on the map. <br />(d) The proposed exploration, plugging & abandonment (P&A) and site reclamation <br />will be conducted within a four-week period of time (assuming weather and ground <br />conditions are suitable), beginning as soon as possible. <br />(e) The surface lands are owned by MCC. <br />