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Mountain Coal Company NIMS flk MM ro.t Deno. ao: Sat saMewt. Cdortlo 81434 rr.pnoM 970 929-sots Foy 970 929-5594 May 15, 1996 Mr. Raymond L. Kingston U. S. Forest Service Paonia Ranger District P. O. Box 1030 Paonia, CO 81428 Re: Addition of Dnl! Holes IIand EE-twin Dear Ray: III IIIIIIIIIIIII III 999 _ Mountain Coal Compaq (MCC) has determined that two additional holes must be drilled early in this year's exploration program These are drill holes II and EE-twin Dell hole II is located oa U. S. Forest Service (LTSFS) land in the NEU4, Section 21, T13S, R90W, 6th P. M, ut~izing the access and drill pad of a past drill bole (SOM 10) where only coal thiclmess data was obtained EE-twin is located approximately 400 feet from drill hole EE on USFS land in the NWl/4, Section 22, T13$, R90W, 6th P. M Drill hole II is necessary because MCC will soon need to mine one or two panels, called the Northeast panels, where a trend of poor, potentially unmarketable coal has bees projected from the closest other dnll hole data. The timing of mining these panels has been altered for several reasons. MCC is currently developing the 9th Northwest panel in the Jumbo Mountain lease area. When the Environmental Assessment for MCC's 1996 exploration program was nearing completion, a parting was encountered at the west end of the adjacent 8th Northwest panel. Should this parting extend eastward into the 9th Northwest panel located to the south, then development will be stopped short of the planned length of the panel. Another parting has been found in the eastern third of both panels, as well. This parting may cause these panels to be unminable with the longwall. The development of the B-seam East Main entries has also been delayed by a fault and significant water inflow. In order to continue longwall mining and meet contract obligations, MCC will need to have identified and develop mined another longwall panel. The Northeast panels are the alternative to remedy this situation and keep the longwall mining. The coal quality of the Northeast panels must first be identified to determine the minability of the panels prior to fiuther development of the panels. Drill hole II w~71 provide the necessary data. Drill hole EE-twin is necessary to locate and provide site specific fithologic and geotechnical data for the design of a second ventilation shaft approximately 400 feet from the shaft to be designed from the drill hole EE data (already included in the exploration progtxttt). Since the initial deteratination of the need for additional ventdation in the area of the north main entries of the B