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\ MOUNTbIN COAL <br />COMPANYI_.~.~. <br />A Subsidiary of Arch Western Resourcts, I1.C <br />West Elk Mine <br />P.O. Box 591 <br />5174 Highway 133 <br />Somerset, CO 81433 <br />(970)929-5015 <br />Fax (970)929-5595 <br />MCC requested authorization from the USFS to construct and conduct exploration drilling operations <br />from AAA and BBB on June 29, 2001. The authorization granted MCC from the USFS on July 6, <br />2001, was for exploration drill pad and hole BBB. The authorization granted also included approval of <br />pad construction and drilling of boreholes from SOM-124, and 96-27-1 (off-set). The USFS has not <br />approved exploration hole AAA. <br />Approval to drill these additional exploration holes, AAA and BBB, is necessary and prudent to <br />characterize and define the boundazies of a methane reservoir thought to exist in the area. MCC is <br />requesting partial approval at this time for BBB and will request approval for AAA when the USFS <br />authorizes that exploration hole. <br />The reclamation plan for these pads and holes will be the same as the reclamation plans submitted in <br />MR-273, MR-275 and MR-277. As the Division requested in the adequacy responses for MR-275, <br />MCC is specifying that the bottom of the hole will be cemented for a minimum of 300' using "tremie" <br />pipe or drill stem. <br />MCC requests the Division's assistance in calculating the bond estimate for these additional pads and <br />drill holes. <br />Please notify me if you have questions regazding our responses to the Division's adequacy questions. <br />Sincerely, <br />enry A. arbe <br />~a ~'~" <br />Enviromnental Engineer <br />Enclosures: Schedule and Completion Diagram for BBB <br />cc: W. Koontz <br />P. Schmidt <br />ComgMR278resp <br />