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Lorencito Canvon Notice of Intent Amendment <br />3. If the surface owned by a person other than the person who intends to explore, give a <br />description of the basis upon which the person who will explore claims the right to enter such <br />area for the purpose of conducting exploration and reclamation (attach supporting documents, <br />if applicable): <br />The area for proposed exploration is known as the Lorencito Tract. The mineral lessor for the <br />Lorencito Tract is the Hill Group, which is MGP Mineral Enterprises LLLP, C&N M Ranch, Hill <br />Ranch, Ltd., and Richard Bowie Hill. The surface owner of the Lorencito Tract is Hill Ranch. <br />Surface and Mineral Ownership is indicated on Map 1 Lorencito Canyon Mine Surface/Mineral <br />Ownership and Map 2 Lorencito Canyon Mine Proposed Core Exploration Sites. There is an <br />agreement between NECC, Hill Ranch, and the Hill Group for this proposed exploration. The <br />agreement is attached. <br />4. Attach a description of the land to be affected. For example: The condition of the topsoil,the <br />general hydrology, type of vegetation and topography, Rule 2.02.2(2)(c). <br />Hydrology <br />Streams within the proposed exploration area are ephermal, with stream flow in response to <br />precipitation events. Table SW-4 Lorencito Canyon Mine Drainage Characteristics is shown <br />below with the information for each drainage basin on the Lorencito Tract. For drilling purposes, <br />there is at least one drill location within each drainage basin in except for the Alamosa and Little <br />Alamosa drainage basins. All of these drainages eventually empty into the Purgatorie River. <br />Ground water is present in the coal seams. Recharge in the Raton Basin occurs principally in theform <br />of precipitation. Discharge in the area is mainly through evapotranspiration. Based on previous <br />drilling programs the occurrence of groundwater will vary throughout the exploration area. <br />Additional groundwater information is found in Section 5b-5 of this NOI Application. <br />Reference: Lorencito Permit C-1996-084, Section 2.04.9, Exhibit 7, and Exhibit 8 <br />6 <br />2020 Exploration Program 2/11/2021 <br />