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COAL RESERVE QUALITY ENHANCEMENT DRILL PROGRAM <br />INTRODUCTION <br />The New Horizon Mine coal reserves are based on approximately 122 boreholes drilled between the mid-1980's <br />and 2002 The bulk were drilled by Peabody Coal Company in the 1980's. Western Fuels -Colorado (WFC) <br />drilled about 55 holes from 1993 to 2004. Occasionally, WFC needs to drill infill holes within the existing array <br />to make more certain of its' reserve estimations concerning various mining parameters such as coal quality, coal <br />and overburden thickness, etc. WFC anticipates that during the year 2005 such infill holes will be needed. <br />PROGRAM DESCRIPTION <br />The planned drilling program will consist of the drilling of approximately seven (7) twinned coal exploration holes. <br />All will be rotary drilled to a point about 20 feet below the lower coal seam (LDX) for E-logging. After E-Logging, <br />core points will be determined and then the rotary holes will be twinned by a rotary hole to a core point, then cored <br />(3"diameter core) through the coal sections, and then completed with a 2 to 3 foot below the LDX. Total depths <br />will vary from 50 feet to 80 feet. Rotary hole diameter for the top portion will be between 4.5"and 5.5", the outside <br />core diameter will be about 4.0" to 5.0°, and the rotary subdrill will be between 3 7/8" and 5.5". Because the holes <br />are twinned, there will be a total of 14 holes. <br />The equipment to be used will consist of a medium-sized single-wall air rotary truck mounted drill rig similar to a <br />Portaddll TKT or Failing CF-15. This type of rig is capable of ddlling the spot cores needed. Support equipment <br />will include a 1500 to 3000 gal water truck, boom track and drillers' pick-up. Actual equipment used and drill hole <br />dimensions will depend on the conVactor selected to do the work. <br />EARTHMOVING REQUIREMENTS <br />No roatl building will be required, however five of the seven proposed sites will need drill pads excavated. <br />DISTURBED AREA <br />Each of the five pads will be approximately 30 feet by 60 feet (1,800 ft2) in size. Total disturbed area is estimated <br />at about 9,000 ft2 or 0.21 of an acre. The five drill sites that will need pads are PDH2O05-02, 03, 04, O6, & 07. <br />AQUIFER IMPACTS <br />Sec. 2.04.7 of the Permit states that the overburden, coal and underburden zones all have their own distinct <br />aquifers. <br />DRILL HOLE ABANDONMENT <br />The holes as currently planned are all within the mining envelope. Abandonment and closure will be by mining. <br />If mining ceases before closing the hole, or if a hole location is moved to be outside the mining envelope, then <br />those holes will be sealed with a pelletized bentonite product to ten feet above the static water level. The pellets <br />will be adequately sized to allow complete backfilling of the hole below the ten foot above water level line without <br />bridging. The top of the hole will be plugged with concrete from 3 feet to 13 feet below ground level. The holes <br />will not be developed as water wells. <br />Table 2.05.3(3)10-4 show the worst-case estimated reclamation cost for drill hole abandonment. It is worst-case <br />because it assumes that mining will cease before any hole is closed by the normal mining process. <br />(Revised 04/05) Attachment 2.05.3(3)10- 20 <br />