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Lorencito Canvon Notice of Intent Amendment <br />Topography <br />The lease parcel is within an area with substantial natural gas production and the associated <br />disturbance from well pads, pipelines and roads. There are numerous activities in the area including <br />roads, gas development (Evergreen Natural Resources), and grazing. The elevation of the <br />exploration area ranges from 6,695 ft to 6,870 ft above sea level with an annual precipitationof 15 at <br />Lorencito 6,600 Ft. and 17 at Lorencito 7,200 Ft, The topographic expression consists primarily of <br />steeply sloping ridges and narrow canyons. <br />Reference: Lorencito Permit Exhibit 7 Table GW-9. <br />5. Describe Exploration Activities; Rule 2.02.2(2)(g): <br />5a. Attach a narrative description of methods and equipment to be used to conduct coal <br />exploration activities. Include drilling operations, surface blasting, road or access route <br />construction, excavated earth and debris disposal activities. Also describe measures to be taken <br />to protect the environment: topsoil salvage, diversion of overland flow, settling ponds, etc. <br />Drilling Operations <br />Exploration activities will primarily consist of drilling and associated drill site construction. The <br />equipment to be used includes two truck mounted rotary drills, one truck to haul pipe, two water <br />trucks, one backhoe, one bull dozer, a road maintainer, and a logging truck. 4 wheel drive pickups <br />will be used on a daily basis to access the sites. Drilling activities will include rotary andcore drilling. <br />Drill hole diameter will be 5 inches. Drilling fluids include air and water with a mist foaming agent <br />and drilling mud if necessary. All chemicals used will be biodegradable so asnot to adversely impact <br />the surrounding area or any groundwater which may be encountered. <br />Surface Blasting <br />Surface blasting will not be used in this drill program. <br />Road or Access Route Construction <br />Limited road construction will take place due to the extensive existing road network used in gas <br />exploration and production. The road network is shown in Map 2 Lorencito Canyon Mine <br />Proposed Core Exploration Sites. NECC has an agreement with the Evergreen Natural Resources <br />and surface owner to use this existing road network to access sites. <br />Excavated Earth and Debris Disposal Activities <br />A pit for the collection of drill cuttings and fluids will be excavated with a backhoe at each location. <br />The pit will be approximately 8 ft by 40 ft by 6 ft deep. The pit will be pumped on a regular basis <br />and all fluids transported to a disposal site at the New Elk Mine. The pit will be backfilled upon <br />completion of the drilling activity. Present plans call for one pit per drill site. <br />8 <br />2020 Exploration Program 2/11/2021 <br />