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<br />COAL <br />COMPANY LP. <br />An affiliate of Kennecott Energy <br />and Coal Company <br />Ms Erica Crosby <br />Environmental Protection Specialist <br />Colorado Division of Minerals and Geology <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />RE: Colowyo Coal Company L. P. (C-81-019) <br />In-pit Coal Quality Drill Program <br />Request For Minor Revision, MR-34 <br />Deaz Erica: <br />iii iiiiiiiiniiiiii <br />999 <br />5731 Stars Highway 13 <br />Meeker. Colorado 81647 <br />(303) 8244451 <br />(303) 824-4459 FAX <br />December 8, 1995 <br />~Gr.F1vED <br />DEC 11 1995 <br />Division of Minerals t£ Geology <br />As per our conversation, Colowyo wishes to undertake an in-pit coal quality drill <br />program consisting of upwazds of three exploratory drill holes drilled within the existing <br />permitted and actively mined east pit mining azea (see enclosed map). The purpose of the <br />program is to obtain additional data for the coal seams currently being mined in the east pit, as <br />well as to obtain additional data from coal seams lying below the bottom of the east pit and <br />possibly as deep as the Trout Creek Formation. Drilling will consist of a combination of pilot <br />hole drilling, geophysical logging, and core drilling. <br />Drill holes will be sealed in accordance with the applicable parts of Rule 4.07. <br />Those holes drilled immediately in advance of the active operation (through "F" seam) will not <br />be plugged since those holes will be mined through in the normal course of the approved <br />operation (4.07.1(3)) and those holes extending below "F" seam will be sealed with heavy media <br />mud and drill cuttings (4.07.3). <br />For bonding purposes, the following conservative cost estimate approach assumes <br />all holes aze backfilled with concrete, and corresponds with the technique utilized prior in <br />Colowyo's Notice of Intent for Coal Exploration, Danforth Hills. A total of 4,800 feet of pilot <br />and core hole drilling is anticipated with the average hole diameter being 5.25 inches. Therefore, <br />the total drill hole volume to backfill will be 26.7 cubic yards @ $90.00 per cubic yard of <br />concrete with 10°/a contingency for fractures giving a total cost for plugging holes of $2,643.30. <br />Colowyo will add this dollar amount to the reclamation bond which gives a current bond amount <br />of $18,367,866.30 with a contingency of $168,525.86. <br />