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DESCRIPTION OF OPERATING PLAN AREA <br />The proposed methane drainage drilling for 2007 will occur over MCC's West <br />Elk Mine longwall Panels 18 and 21. Eleven methane drainage wells aze planned over <br />portions of Sections 14 and 15 of T13S, R90W, 6a' Prime Meridian, Gunnison County, <br />Colorado. Seven of the proposed wells aze within the current permitted coal mining azeas <br />on coal lease COC-56447 held by Arch Coal Inc. Four of the proposed wells aze within <br />the current perntted coal mining areas on Fee Coal also held by Arch Coal Inc. These <br />same four wells aze on MCC's property. <br />Other activities associated with the drilling will occur in Sections 23, 26, 27 and <br />32 of T13S, R90W, 6a' PM. These other activities may include, but are not limited to, <br />reclamation of previous roads and drill pads, cleazance surveys, locating and flagging <br />proposed road and pad sites, building new drill roads for access, monitoring and <br />maintenance of methane exhausters and monitoring of reclamation progress on previously <br />reclaimed roads and pads within the project area. <br />MINE PLAN AND SRP <br />MCC is currently mining Panel 20 as projected in MCC's 2007 Budget Plan. <br />Pane120 is scheduled to be completed in May, 2007 (See Map 1). Mining of Pane121 <br />will commence approximately 30 days after Panel 20 mining is completed. MDWs for <br />both Panel 18 and 21 are to be completed in the 2007 drilling season, May-October 2007. <br />MCC will complete as many of the listed MDWs as possible, understanding that <br />completion of these specific wells is a function of several factors. <br />It is the aforementioned coal production schedule that drives the need for the <br />Iisted MDWs. If this schedule vanes going forwazd, the need for more or less MDWs <br />would be necessary. If this schedule varies MCC will contact Forest Service and discuss <br />these corresponding needs resulting from the schedule variance. <br />Also, affecting the number of MDW's is the magnitude of methane encountered <br />as mining proceeds. Current well plans are based on the best information available at this <br />time. However, as the development of future panels progresses more information is made <br />available which will allow MCC to adjust well plans accordingly. In addition as panels <br />are mined conditions may be encountered that would require additional wells to be able to <br />safely and efficiently produce the coal. Should such adjustments become necessary, <br />MCC will contact the Forest Service and discuss adjustments to the drilling plan. <br />2007 METHANE DRAINAGE WELLS <br />MCC intends to drill 11 MDW holes in 2007. Seven of the holes will be <br />completed for Panel 21 mining, and four for Panel 18. Map 2 depicts the MDW's <br />