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SECTION 22, MT. GUNNISON FUEL CO. 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 Company (MGFC) 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 <br />Mine Geologist <br />Ark Land LLC <br />West Elk Mine <br />5174 Highway 133 <br />Somerset, CO 81434 <br />(970) 929-2246 <br />Michael Peacock <br />Mine Engineer <br />Mountain Coal Company, LLC <br />West Elk Mine 5174 Highway 133 <br />5174 Highway 133 <br />Somerset, CO 81434 <br />(970) 929-2301 <br />(c) MCC plans to drill up to two (2) exploration holes to determine the characteristics of <br />the coal seam(s) and the over- and underlying geologic structures in that area. The <br />proposed exploration activities will be conducted on previously disturbed areas of existing <br />unimproved roads and past aspen harvests that is within the area labelled as the "area of <br />exploration" on the attached map. This area is located on private lands owned by Dick <br />and Chris Kendall, located at the south end of MCC's MGFC fee lease, within the S1/2 <br />N1/2 of Section 22, T14S, R90W, 6t" PM. <br />The holes will be rotary drilled to about 1,000'— 1,300' in depth and will be cased <br />through the upper 50'-200' of unconsolidated colluvium. If insufficient data result from <br />the first hole, 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 Dick and Chris Kendall. A copy of the <br />agreement for access and exploration is attached. <br />