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Exhibit 2 WEST ELK MINE GOB GAS GATHERING SYSTEM COSTS <br />WEST ELK MINE <br />MDW WELLHEADS <br />Description <br />MATERIAL <br />Quantity <br />Units <br />Unit Cost <br />Total cost <br />Category Totals <br />Comments <br />Exhauster <br />owned <br />1 <br />0 <br />Relief Valve <br />1 Lot <br />5,000 <br />Separator <br />1 Lot <br />10,000 <br />Water tank -Heater <br />1 Lot <br />10,000 <br />Screw Compressor <br />1 Lot <br />20,000 <br />Plan to lease with maintanence agreement <br />Fuel Conditioning System <br />1 Lot <br />15,000 <br />Meter Run Skid <br />1 Lot <br />10,000 <br />Methanol Injection <br />1 Lot <br />5,000 <br />BTU Monitoring <br />1 Lot <br />5,000 <br />Sat Communications <br />1 Lot <br />101000 <br />Misc Valves, Fittings <br />1 Lot <br />5,000 <br />Total Materials <br />95000 <br />95,000 <br />INSTALLATION <br />Exhauster <br />owned <br />0 <br />Screw Compressor <br />1 <br />Roustabout to set and hookup in one day <br />Wellhead Equipment <br />1 <br />5,000 <br />This is low pressure only for collapse resists <br />Total Installation <br />5000 <br />5,000 <br />PROJECT MANAGEMENT <br />Engineering <br />Coordination & Inspection <br />5 <br />10,000 <br />Contingenecy 10% <br />13,500 <br />Total Project Management <br />23,500 <br />TOTAL COST PER WELL <br />123,500 <br />Number of wells <br />5 <br />$ 617,500.00 <br />Total <br />