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WATER WELL COMPLETIONS Drill sites ECP-1 through ECP4, ECIS and ECRS were completed as water monitor (piezometer) wells. All of the wells were completed using 2" PVC casing and well screens. Completion diagrams for each well accompany this report in Section 4. RESULTS FROM THE 1998 AND 1999 DRILLING PROJECTS The burn areas were more extensively burned than anticipated. Some of these burn areas were still active and should be avoided by the mine entries. One entry location in the Elk Creek drainage was found between the bum areas. This location is shallow and is next to Elk Creek itself, approximately 2200 feet north of the new Oxbow stacking tubes. This area was the focus of the recently completed December-January geo-technical drilling program. Water flow through the D-seam was difficult to determine, due to the numerous lost circulation zones encountered in the drill holes. Most of these zones are collapse fractures caused by the collapse of the rock overlying burned coal. Estimates of total water flow into the drill holes ranged from dry in the southwest burn area to 10 gpm down dip. Two partings in the D-seam were located from the core descriptions. The lower parting is approximately 2-3 feet above the base of the seam. Where cored during the 1998 drill program, this lower parting ranges from 0.3 to 0.7 feet in thickness. The lithology of this parting ranges from a shaley coal to a shale and appears to be consistent in location. The D-1 portion of tie D-Seam is located below this parting. The upper parting is approximately 7-9 feet above the base of the seam. This upper parting ranges from 0.0 to 3.2 feet in thickness and is very erratic to the northwest and west of Elk Creek. Lithology ranges from a shaley coal to interbedded shale and coal. Thickness and rock content of the upper parting increase to the northeast and east of Elk Creek (EC-10). The D-2 portion of the D-Seam is located between the upper and lower partings. The D-3 is located above the upper parting. Where the upper parting is thin or not present, the D-3 is considered to be part of the D-2. During the summer 1998 drilling program, Glenn Miller undertook some joint set mapping on the west and east slopes of Elk Creek in the area of the proposed underground entry. Two joint sets were measured. The primary joint set ranged in azimuth from 80-100 degrees, averaging about 805 degrees. The second joint set ranged from 345-350 degrees in azimuth. Pillar orientations should take these joint set orientations into account. r• Page 2 of 3