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PQabody <br />BTU Empire Corporation <br />May 25, 2006 <br />Mr. James Burnell <br />Colorado Division of Minerals and Geology <br />1313 Sherman St., Room 215 <br />Denver, CO 80203 <br />Phone: (303) 866-3567 <br />Re: BTU Empire Corporation -Notice of Intent to Explore <br />Deaz Mr. Burnell: <br />29515 Routt County Road p27 <br />Oak Creek, CO 80467 <br />970LBj'~ <br />((~~ ~-+ <br />JUN 012006 <br />Oi„Wn W Miriarela arM GaypiY <br />/'oil' o~ <br />~~" <br />BTU Empire Corporation (BTU-EC) is submitting this Notice of Intent (NOI) to provide for <br />exploration access, drill-pad development, drilling, and sampling of up to 10 coreholes, and subsequent <br />reclamation of the associated exploration disturbance in an azea designated as the Empire property, as <br />shown on the accompanying maps. The proposed exploration activities, which will occur during 2006, <br />will provide BTU-EC with important geologic and coal quality information needed to assess coal <br />recovery potential and economic feasibility for possible future mining of coal reserves associated with <br />the Empire property. -' <br />This NOI application includes the following: <br />• Transmittal letter <br />• Parts I-III of the CDMG NOI form and corresponding explanatory text, tables, figures, and <br />maps <br />• Legal description of the proposed exploration area <br />• Cultural Resource Letter <br />The proposed 2006 exploration progam involves: <br />Construction of 10 drill-pads (each approximately 100 x 100 ft) <br />Completion, sampling, and geophysical logging of 10 coreholes <br />Abandonment (plugging and sealing) of the coreholes, and reclamation of the associated <br />exploration disturbance <br />Six of the 10 proposed exploration locations have been previously disturbed by surface coal mining <br />operations and other surface disturbance activities including activities associated with the Williams <br />Fork, Trapper, Empire, and No. 9 Mines, and more recent agricultural activity. Anne McKibbin, of <br />Metcalf Archaeological Consultants, Inc., conducted a review of the 4 remaining proposed exploration <br />sites and has provided a letter verifying that, because of the nature and extent of previous surface <br />disturbance, there is no significant potential for disturbance of cultural resource values from the <br />proposed sites. Review of the proposed locations by the Colorado Division of Wildlife did not identify <br />