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• Lease C-020740 --- 40.0 Acres <br />This lease is located near the eastern end of the Book Cliff's coal <br />field. There are no known drill holes in the block. Adjacent property <br />owners drilled some holes in the vicinity in 1976, the closest of these <br />being a hole (CC -76-1) about 1800 feet east and a hole (CC -76-5) about <br />2300 feet south of the south boundary. Based on these holes and general <br />geologic information on the area, there are three coal seams on the <br />property, discussed in more detail below. <br />1. Carbonera Seam <br />This is the uppermost.of the three seams, overlying the Cameo <br />by 50 to 60 feet on the lease. The seam is not mineable in the Roadside <br />Mine area, and it is not believed to be mineable in this block based on <br />• the adjacent drill holes. Drill hole CC -76-1 shows 6.79' total thickness <br />of which only 4.1' is coal, being two layers with 2.6' of parting material. <br />Drill hole CC -76-5 shows four thin seams, the thickest of which is 2.5', <br />spread over 9.93' thickness with partings between 1.89' and 2.53' thick <br />between seams. <br />Based on the data above, it does not appear there is mineable <br />Carbonera seam coal in this block. <br />However, as required, a "Reserve Base" was figured using the best <br />available information. Using the total thickness of 6.79', which includes <br />partings, the total coal in place calculates out to 488,880 tons. <br />Information from adjacent holes shows the quality as follows: <br />Moisture, as received <br />7.16% <br />FSI <br />1 <br />Btu, as received <br />10,426 <br />C <br />(dry) <br />63.11: <br />Ash, dry <br />• <br />20.12; <br />