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24HG2E27XC Sample Hole(s) Project Plan Minor Revision 320 Page 2 of ] 1 PROJECT DESCRIPTION The proposed project consists of drilling up to two (2) drill holes and wells to facilitate initially monitoring/sampling, and then injection of water, foam, and nitrogen into a hotspot, if required, in the B Seam. The proposed wells aze in Section 23, of T.13S, R.90W, 6~h Principal Meridian, Gunnison County, Colorado. The proposed project is within the current permitted coal mining area (Permit Number C-80-007) and on land surface managed by the USFS. The wells will be located on Federal Coai (BLM) Lease COC-056447. The wells will be drilled in the azea approved under TR-96 and subsequent approvals for the annual operating plans i.e. MR-306 (2005), for Methane Drainage Wells. Another minor revision No. 319 was approved for 24HS01 through 24HS03. MCC's overall plan for drilling and reclaiming MDWs was originally approved by CDMG on 15 July 2002 as Technical Revision 96 -Project Plan for Methane Drainage Wells for Panels 16, 17, 175, 18-24. The Forest Service performed an Environmental Assessment of MCC's Methane Drainage Wells Plan, and approval was received in the Decision Notice and Finding of No Significant Impact, May 31, 2002. These two proposed wells are in the overall project area but were not proposed for inclusion in the US Forest Service reviews. As such, these wells are the subject of this separate Minor Revision. Because these wells aze on US Forest Service managed lands, US Forest Service approval of their installation will be required. The attached Proposed MDWs and New Road Construction for 2005, Map 2, at a scale of 1" = 1000', depicts the general location of the proposed drill pad, and Project methane drainage wells, and the new road (part of the 2005 MDW Project). The pad will be on an area that was reclaimed for previously drilled 96-23-1 exploration hole. SURFACE TOPOGRAPHY The elevations of the proposed borehole locations range from approximately 8300 ft. The terrain is comprised of steep slopes and mesa tops formed within the Wasatch and Mesa Verde Formations and the colluvium and alluvium layers of the slope debris. The principle drainages in this area are unnamed tributaries to Deep Creek that is tributary to Raven Creek that is tributary to the North Fork of the Gunnison River. GEOLOGY The proposed Project would include drilling along the southeastern edge of the Piceance Basin within the Somerset Coal Field, occurring on the Somerset U.S.G.S. 7 1/2-minute quadrangle map.