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Marr Mine -Borehole Reclamation Plan January 29, 2002 Page 2 • Coal Exploration License - 23 wells; • Marr Mine Permit - 39 wells; and • Outside both boundaries -10 wells. There aze approximately 47 wells Eor which Kerr is likely responsible, 17 have been identified as likely drilled by UASGS and 8 additional wells have unknown ownership at this time. Given that the number, location, and responsibility (Kerr or other) Eor existing boreholes and monitoring wells in the subject azea is not well defined, Kerr proposes that a field reconnaissance and inventory of wells be completed as the initial component of the Borehole Reclamation Plan. The Eeld reconnaissance and inventory .vtll be conducted within the defined area boundaries and will involve a methodical pedestrian search for existing surficial evidence of wells, boreholes, or other structures. Any existing surficial evidence observed will be located using a portable GPS unit to determine coordinates, described relative to the type and nature of surficial evidence (i.e.: type, size, and condition of surface casing, etc.), any designations or mazkings will be recorded, and wells/boreholes will be correlated in the field to previously documented exploration sites, where possible. It is presently antiupated that the proposed field reconnaissance and inventory will be completed during second quazter 2002 contingent on suitable field access conditions. Determination of Potential for Beneficial Use Using information from the initial well inventory and available documentation for Kerr's historic exploration activities, any existing wells that could reasonably be used (criteria would be proximity to or location within existing or potential pit areas; completion interval; and suitable casing size, type, and condition) for ground water monitoring of existing or potential future operations will be identified. Similarly, any existing wells that could reasonably be used (criteria would be suitable casing size (minimum 4-inch I.D.), type, and condition; water level (less than 55 feet); and well location relative to existing drainages or watering sources (isolated upland is favorable)) as water supply wells will be identified. Identified wells that could reasonably be used for either monitoring or water supply will then be screened to eliminate those where retention for beneficial use could not be reasonably justified and brief justifications prepazed for any remaining wells recommended For retention. A short list of wells with potential future beneficial use(s) has been prepazed. These are indicated on the attached drawing, Map BLM-2. Additional information about these wells will be obtaited during the Geld reconnaissance work in 2002. BLM Review and Concurrence on Well Retention for Beneficial Use Recommendations and justifications Eor any wells proposed for retention for benefiual use will be submitted for BLM review and subsequent joint BLM/Kerr determination of potential disposition. For any wells proposed for retention as a result of this inventory, evaluation, review, and determination process, Kerr will coordinate with the BLM to define and implement well transfers or repairs as reasonable and necessary to achieve the proposed beneficial use(s). In general, for any wells that would remain as monitoring wells, repairs will be limited to placement or repair of surface casing and locking well caps to prevent access and maintain well integrity. If the estimated cost of reasonable and necessary well repairs exceeds the projected cost of plugging and reclaiming a given well, Kerr retains the option of plugging and reclaiming the well(s). For any wells that would be converted to water supply wells, wells would be transferred in their current condition [o either the BLM or surface leasee, who would then be responsible for testing to determine suttabiliry for development as a water supply; obtaining the necessary water rights; well repair, rehabilitation, and