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© Mr. I„hn Morrone <br />Ajrnl 3, 2002 <br />Pogt ? <br />The purpose of the meeting was to discuss and clarify specific details of the borehole reclamation <br />plans originally developed by MWH for Ketr Coal Company (Kerr) and subritted to the BLM <br />and CDMG in January 2000 and subsequently revised and re-submitted to these entities in <br />September 2000 and)anuary 2002. <br />The attached agenda was distributed as a framework for the meeting and discussions. Following <br />introduction of the meeting participants, Rich Munson provided a general overview of the Kerr <br />operations, history, and current status. He specifically noted char. <br />]) Elimination of the rail link to Walden adversely affected the economic viability of the <br />mine resulting in its closure and subsequent reclamation in 1995. <br />2) In the intervening years, Kerr has actively pursued potential options for development <br />and beneficial use of the extensive coal reserves that remain, including a co-generation <br />project and coalbed methane (CBM) development. <br />3) Reasonable options have been exhausted, given current mazket conditions, and Ken is <br />planning to relinquish the coal lease when it expires. <br />John Moaone provided a brief history of the exploration license and coal lease associated with the <br />existing boreholes, noted that the boreholes should have been reclaimed on completion of the <br />exploration program, and indicated that the current operator of the McCallum Oil & Gas Field has <br />expressed interest in CBM development in the azea. ]n response to a question about the area <br />targeted and schedule for potential CBM development, it was noted that available information <br />indicates that it would be well to the north of the Kerr property (R. Munson), that the outcrop of <br />the coal seam and lack of water on the west limb would preclude CBM occurrence and <br />development in the immediate area Q James), and that no CBM development plans are currently <br />on file with the BLM, but would potentially be included in the operator's annual development plan <br />due to the BLM by 3/31/02 Q. Morrone). Jerry Nettleton noted that Kerr's intent and objective <br />relative to the borehole reclamation plan is to effectively seal and reclaim those boreholes for <br />which Kerr is responsible while limiting associated costs, to the extent reasonably feasible. <br />Borehole Retention for Beneficial Use <br />The discussion of retention of boreholes for beneficial use (Agenda item 3.0-D) was addressed <br />next to take advantage of Jerry Jack's availability. With reference to the 1/29/02 Borehole <br />Reclamation Plan update submittal, it was noted that those boreholes identified as having some <br />potential for future benefiual use (includes ground water monitoring, future coal <br />exploration/production, and water supply) are identified on page 2 of the attachment titled, <br />"Borehole Information Update" and the map that accompanied this submittal. BLM review of <br />this information and existing allotment boundaries and range improvements resulted in the <br />conclusion that only boreholes 79-60, 80-2, and 80-]1 might have some potential for beneficial <br />stock watering use Q. Jack, P. Belcher, ]. Morrone). Given that limned information is available for <br />these boreholes, the BLM is requesting that water level, flow, and recovery testing be completed to <br />better define the feasibility of com~erting the boreholes to stock watering wells (P. Belcher). It was <br />noted that location of the boreholes relative to other watering sources and the size of the casing <br />(minimum 4'~ would also be considerations in any decision to develop the wells Q. lack, P. <br />Belcher). <br />