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RULE 2 PERMITS <br /> <br />South Taylor – Rule 2, Page 12 Revision Date: 7/21/25 <br /> Revision No.: MR-267 <br />Near the county line of Moffat and Rio Blanco Counties (which traverses the southern portion of the <br />permit revision area), a small anticline trending northeast is present. This unnamed anticline is an <br />offshoot of the Danforth Hills anticline and Wilson Creek Dome to the south and west. Dips on the south <br />flank of this small anticline are between 3° and 20° to the southeast. This anticline is associated with a <br />small syncline located between it and the Danforth Hills anticline. The synclinal axis is located in the <br />West Fork of the Good Springs Valley. <br /> <br />South and west of the permit revision area is the Wilson Creek Dome, part of the Danforth Hills anticline. <br />A producing petroleum reserve, the dome is capped by the Iles Formation. This uplift has caused the <br />South Taylor area to be uplifted and only the bottom 700 feet of the Williams Fork is present. The beds <br />in this area have a strike to the northwest with dips to the northeast of approximately 7°. <br /> <br />The existing mine and permit revision area are affected on the east by an unnamed syncline that is aligned <br />with the West Fork of Good Spring Creek. This fold has a northeast strike and the western flank of the <br />syncline causes the beds on the east side of the South Taylor and existing mine area to dip to the <br />southeast. These beds increase their dip as the axis of the syncline is approached in the South Taylor <br />area. <br /> <br />Exploration Test Borings <br /> <br />Exploration test borings have been conducted within the South Taylor mining areas and have been used <br />for the following purposes: <br /> <br />Identifying Location of Subsurface Water - Since most of the exploration drill holes were dry, the <br />circulation medium for most exploration drill holes drilled within the mine areas was compressed air with <br />water and foam to lift the cuttings to the surface. Drilling mud was used when heavy fracturing or burn <br />areas were encountered. Several drill holes throughout the area encountered minor amounts of <br />groundwater; however, all of the data obtained to date by Colowyo and the USGS have indicated that <br />groundwater occurrences in the Williams Fork Formation in the area are not continuous but rather are a <br />series of perched systems of limited lateral and vertical extent. Information on groundwater occurrence is <br />provided in Section 2.04.7. <br /> <br />Characterizing Physical Properties of the Overburden - The overburden material, which is removed as <br />a part of the mining operation, consists mainly of mudstones, siltstones, and sandstones. Generally, the <br />mudstones will have a relatively high erodibility and compaction factor, while sandstones and siltstones <br />will have low erodibility factors and low to moderate compaction. Because of the variable lithology and <br />lenticular nature of the strata in the permit area and the variations in the mining techniques (dragline, <br />truck/shovel), it is difficult to determine an actual value for the swell of the overburden; therefore, the <br />overall swell of the overburden material was estimated to be approximately twenty (20) percent. <br /> <br />Evaluating Geochemical Properties of Overburden - Chemical analyses of overburden and interburden <br />strata in the areas to be mined are provided in Exhibit 6, Item 6. The ongoing overburden sampling <br />program at Colowyo described in Exhibit 6, Item 4 of the existing permit document has confirmed earlier <br />estimates of the geochemical properties of the overburden identified by exploratory drilling. A summary <br />of overburden geochemistry is presented in Table 2.04.6-3 and the relevant borehole locations are shown <br />on Map 11B. <br /> <br />This section presents the results and interpretations of geochemical tests performed on overburden <br />material samples from the South Taylor pit area. The purpose of these tests is to determine the chemical <br />composition and assess the acid-forming, toxic-forming, or alkalinity-producing potential of overburden <br />material within the South Taylo pit area. This section describes the methods used in collecting