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block along with coal thicknesses and calculated in place tons. In the <br />• calculation for "Reserve Base" there were 271.37 acres outside the <br />outcrop. Reserve base on the remaining 2279.55 acres amounts to 31,442,946 <br />tons. <br />Due to certain factors, i.e., OSM, subsidence, State of Colorado, <br />etc.; no detailed mine plan has been drawn up at this time. Recoverable <br />reserves were therefore calculated by first deducting coal contained in <br />a 50 foot boundary strip (65,532 tons) and then using a recovery factor <br />of 50% for the remaining acreage. This results in a total of 14,984,625 <br />tons. Thicknesses in excess of 8.0 feet were not used because of antici- <br />pated mining techniques, which include room and pillar methods and <br />retreat longwall systems. The roof supports used in longwall mining are <br />limited as to the amount of vertical travel. Therefore, these supports <br />• have to be sized to be effective in the lowest coal encountered, which <br />in this case is 5.97 feet. This results in a limiting height of approxi- <br />mately 8.0 feet. If room and pillar methods were utilized greater <br />thicknesses could be extracted but the overall recovery is not as good <br />because of the necessity of leaving stumps and fenders for temporary <br />roof support. <br />Additional information pertaining to this lease can be found in the <br />drill hole data accompanying this report. <br />Lease C-024998 <br />Mineable Reserve Base <br />(Cameo) <br />Avg. Btu/Pound <br />Category <br />Acres <br />Avg. Thickness <br />Tons <br />(As Received) <br />Measured <br />674.04 <br />7.60' <br />9,224,732 <br />10,224 <br />1106.57 <br />7.24' <br />14,415.635 <br />10,224 <br />•Indicated <br />Inferred <br />498.94 <br />7.12' <br />6,394,415 <br />10,224 <br />