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2003 OPERATING PLAN <br />DESCRIPTION OF OPERATING PLAN AREA <br />The 2003 methane drainage drilling will occur over MCC's West Elk Mine <br />longwall Panels 22 and 23. Seventeen methane drainage wells are planned over portions <br />of Sections 22 and 23, of T.13S. R.90W. 6`h Prime Meridian, Gunnison County, <br />Colorado. The proposed wells aze within the current permitted coal mining azeas on coal <br />lease COC-56447 held by Arch Coal Inc. The exact length of panels 22 and 23 is <br />dependent on mining conditions within the mine. If the length of the panels were to <br />increase, the number of holes drilled from the pads shown on the easternmost drill pads <br />may vary from what is indicated on Map 2, and the total number of holes drilled may <br />increase. Additional methane drainage drilling may be required over panel 17 if in-mine <br />methane concentrations reach unacceptable levels for the safe and efficient production of <br />coal. If additional wells aze needed in panel 17 these would likely be in between <br />existing MDW wells located in Sections 26, 28, and 35 and fall within the coal lease <br />COC-1362 also held by Arch Coal Inc. In the event that such additional wells are <br />required every attempt will be made to drill such wells from existing pads and roads <br />constructed during the 2002 drilling season. Water supplies for such drilling would <br />involve either the use of water skidders to haul from the RAV-1 Spur to the site and/or <br />extending water lines to follow the same water supply routes as were used in the 2002 <br />drilling seasons with the exception the water supply to the 15-OS pad site would come <br />from across-country route via the existing ATV trail that ties into the West Flatiron Road <br />above Bomb Rock and thence along the West Flatiron Road to the West Bench Road, <br />The supply line would then follow the West Bench Road to the RAV-1 Spur intersection <br />where it would tee-in to the existing main water line. <br />Other activities associated with the drilling will occur in Sections 14, 22, 23, 26 - <br />28, and 33-36 of T.13S, R.90W., and Section 2 of T.14S, R.90W. 6~' P.M. These other <br />activities may include, but are not limited to, clearance surveys, locating and flagging <br />proposed road and pad sites, monitoring and maintenance of methane exhausters and the <br />reclamation of existing roads and pads. Any activity that creates additional surface <br />disturbance on the permit azea will be communicated to the CDMG prior to any <br />construction activities for a determination of whether or not specific permit approval is <br />required. <br />MINE PLAN AND SRP <br />MCC has, and is, proceeding with the mining of Panel 17 as projected in MCC's <br />2003 Budget Plan. As such Panel 17 will be completed in October 2003. Mining of <br />Pane122 will commence in November. Panel 17 would be completed 2nd quarter 2004. <br />6 <br />