2020-10-27_PERMIT FILE - C1981035

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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. Excavation to Locate the Coal Seam Outcrop Along the East Side Slope Minor Revision MR-50 proposes to expose the coal seam on the hillside immediately adjacent to the existing surface facilities, approximately easterly from the #2 Coal Stacker Pile. The purpose of this exercise is to locate and analyze the coal seam, in order to determine the feasibility of installing additional portals to access coal reserves on State of Colorado coal lease CO-3388 and Federal coal lease COC-62920 (both held by GCC Energy). Exposing the coal seam outcrop will be achieved by using a mini-excavator traveling through the existing brush up and/or across the hillside to the anticipated elevation of the coal seam. Where necessary, topsoil from any access paths will be salvaged and replaced upon termination of the project. It is anticipated that 3 cuts will be made at locations as shown on Map King II-007 After salvaging and protecting the topsoil, a small narrow cut will be made to expose the coal seam. The seam will be measured and sampled for quality. Any coal waste exposed will either be removed and transported to the King I Refuse Pile, or replaced in the cut and covered with at least 3.5 feet of non-toxic fill material and capped with at least 6 inches of topsoil. All areas disturbed during this project will be reclaimed and re-seeded as detailed in Section 2.05.4. CC Energy, LLC King II Mine Section 2.04.6 Page 7 December 18, 2019 (MR-50)