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. GEOLOGY DESCRIPTION: UNDERGROUND MINING <br />SURFACE GEOLOGY <br />The coal within the "A" seam pod of the proposed King II Mine is low ash, <br />low sulfur, and bituminous coal with a 5.0 free swelling index (blending <br />metallurgical coal). An average analysis of six samples as received <br />follows: <br />Additional coal analysis as well as analysis of the immediate floor and <br />roof for the upper seam is included in Appendix 4. <br />Only the upper two members of the Mesa Verde Group are exposed on <br />the property. The proposed King II Mine is located on the north side of <br />Hay Gulch with entries to be driven into the coal bearing Menefee <br />Formation. The Cliff House Formation caps the higher ground on both <br />sides of the gulch. <br />COAL GEOLOGY <br />Exploration drilling and analysis concluded that the two coal seams <br />exposed at the current mine coalesce into on "A" seam pod to the <br />northwest of the current operation. At the location of the proposed King <br />II Mine there is one "A" coal seam pod with a thickness ranging from 5.9 <br />to 11.7 feet, with an average of 9.9 feet. <br />Bedding at the project site dips 2-3~ in asouth-southwesterly direction. <br />COAL QUALITY <br />BTU Moisture Ash Sulfur <br />12,743 5.6% 7.5% 0.68% <br />GEOLOGIC HAZARDS <br />• <br />Geologist, David L. Gaskill, of the Conservation Division of the U.S.G.S. <br />reported no unusual geologic hazards are known that might adversely <br />affect mining in the upper or lower Menefee coal seams. He noted that <br />ground water tables were below the seams (See King Coal Mine existing <br />permit Appendix 4(3)). Mr. Gaskill's report was prepared in February, <br />1980, for the survey's consideration of National King Coal's application <br />for a new Federal Lease adjacent to the current lease holdings at the <br />current mine. <br />An inspection of the current King Coal Mine workings shows no <br />National King Coal, LLC <br />Section 2.04.6 <br />Page 5 <br />King II Mine <br />October, 2005 <br />