2017-11-01_PERMIT FILE - C1981035A (16)

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All of the holes were geophysically logged. The equipment necessary for such work was mounted in a full-size Suburban -type 4X4. Under this program no roads were proposed for construction and no blasting was performed. The moderately rugged terrain of the exploration area consisted primarily of the mesas drained by Hay Gulch. Elevations varied from approximately 7,200 feet to 7,800 feet on the mesa top. The major changes in elevation were predominantly along the edges of the flat top mesas with relatively little elevation change on the mesa tops. All 8 of the exploratory boreholes were drilled on the mesa top. Topography is shown on attached map Topography & Drill Hole Locations (Appendix 4 (4) page 1). The proposed exploration area was accessed by dirt roads and well defined jeep trails controlled and maintained by the Ute Mountain Ute Tribe and the State of Colorado. The weather can drastically affect mobility and as such severely limit exploration efforts, especially in winter months The exploration borehole drilling was anticipated to be completed, weather permitting, by the end of December, 2014. Due to early snow in the region, drilling was actually completed during early summer, 2015. Water bearing strata was not expected to be encountered in the 9 proposed drill holes. Water has not been encountered in previously drilling projects in the area or in the active workings of the King II mine. Small amounts of water were encountered occasionally at the King I mine. These were believed to be small "perched" aquifers that dried up quickly once the coal had been removed below them. Unlike the King II mine, the King I mine strata dipped below the coal outcrop. King II outcrops on practically all sides of the surrounding mesas, effectively draining any perched aquifers to the outcrop. CC Energy, LLC Section 2.04.6 Page 7 King II Mine September 14, 2016 (MR -41)