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turns from the southern end of the BB Detour Road and advances westward. Map 2.05.3(3)-2 <br />shows a typical cross section of the Pit Turn Slot Cut. New Horizon plans on making up the <br />deficit backfill volume this cut will create when it mines west of 2700 Road and the overburden <br />depth increases. New Horizon anticipates that by the end of 2004 the slot cut will be backfilled, <br />graded and topsoiled by the normal ongoing mining processes. At that point a revision for bond <br />reduction will be proposed. As of the Mid Term Review of 2006, the slot cut has been mined <br />through and reclaimed. No future slot cuts are planned for the operation. <br />2. Exploration Drill Holes <br />The New Horizon Mine coal reserves are based on approximately 115 boreholes drilled between <br />the mid -1980's and 2004. The bulk were drilled by Peabody Coal Company in the 1980's with <br />New Horizon drilling about 55 holes from 1993 to 2004. Occasionally, New Horizon needs to <br />drill infill holes within the existing array to make more certain of its reserve estimations <br />concerning various mining parameters such as coal quality, coal and overburden thickness, etc. <br />New Horizon anticipates that from the year 2003 and onward such infill holes will occasionally <br />be needed. See Attachment 2.05.3(3)-10 for details. <br />3. Relocation of the CCC West Lateral Ditch <br />An agreement between the Colorado Cooperative Company (CCC) and New Horizon was <br />reached in 2001 to install a primary 26" HDPE pipeline and a secondary 12" HDPE pipeline to <br />temporary divert and distribute approximate 38cfs of water to the lawful water share owners <br />while mining through the original West Lateral Ditch located within the permit boundary. After <br />the land was reclaimed, the same pipelines were reinstalled into the approximate original ROW <br />of the original open ditch. Gate valves and mechanical flow meters were installed at agreed upon <br />locations along the pipeline so each land owner could meter their shares of water out of one or <br />the other or both of the two main pipelines. It was decided and agreed upon that a big benefit of <br />keeping the pipelines as a permanent structure across the final graded reclamation was that <br />leakage of water from an open ditch through disturbed ground would be eliminated, plus it <br />would give the downstream water users some pressure to better irrigate their land with. As of <br />2007, the 28" and 12" HDPE pipelines had been permanently buried in their final resting place, <br />which is approximately in the same ROW as the original ditch. The CCC is happy with the work <br />and as of early 2010, a signed easement for the pipelines from each land owner needs to be filed. <br />New Horizon is working on this detail. All users seemed to be happy with the permanent <br />installed pipeline. <br />A 12" HDPE pipeline, with three takeouts, will be installed along BB Road west of 2700 Road <br />to provide irrigation water for the Morgan and ERMR properties on that side of the mine. <br />Section 2.05.3(3) Page 39 September 2017 (TR -81) <br />