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2.04.6 page 16 <br />Addenda <br />SURFACE GEOLOGY <br />Only the upper member of the Mesa Verde Group, the Cliff House <br />Sandstone of Upper Cretaceous age, is exposed on the surface of the <br />Federal Lease COC 49465 area. Bedding strikes approximately N69°W <br />and dips approximately 2° and less SSE. <br />Fedral Lease COC 49465 is located in lot 4, SW/4 NE/4, SE/4 <br />SW/4 and W/2 SE/4, T35N, R11W, N.M.P.M., La Plata County, Colorado. <br />COAL GEOLOGY <br />Several coal seams occur in the Menefee Formation, middle <br />member of the Mesa Verde Group, below the Cliff House Sandstone. <br />Only the upper seam will be mined in the Federal Lease COC 49465 <br />area. The upper seam has an average thickness of 5.0'. The coal <br />seam is overlain by a few inches of inter-bedded sandstone and coal <br />which are overlain in turn by a massive sandstone which generally <br />stands well. <br />Bedding in the new lease area dips approximately 2° in a south- <br />southeasterly direction - Flattening to the south. <br />COAL OUALZTY <br />The coal of the King Coal Mine is low ash, bituminous coal <br />with a 5.0 free swelling index (blending metallurgical coal). An <br />average of 109 samples as received follows: <br />Volatile Fixed <br />Moisture Matter B+il BTU Sulfur <br />4.7% 38.0$ 58.66$ 8.41$ 12,878 0.81$ <br />* Data provided by National King Coal, Inc. <br />GF.n7.OGTG FLAtiARDS <br />Geologist, David L. Gaskill, of the Conservation Division of <br />the U.S.G.S. reported no unusual geologic hazards are known that <br />might affect mining in the upper Menefee coal seam. He noted that <br />the ground water tables were below the seam (See Exhibit E). <br />An inspection of the King Coal Mine workings and surface <br /> <br />