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MOUNTAIN COAL <br />~° COMPANYL.L.C. <br />A Subsidiary of Fisch Western Resources. LLC <br />August 31, 1999 <br />Mr. Jim Burnell <br />Colorado Division of Minerals and Geology <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />RECEIVED <br />SEP O1 199 <br />Diviswn of Minerals 8 G80109Y <br />iiiiiiiiiiiiiiiiii <br />West Elk Mine <br />P O Box 591 <br />5174 Highway 133 <br />Somcrse4 CO 87434 <br />(970)929-5015 <br />Fax (970) 929-5595 <br />RE: Minor Revision No. 265 (Exploration Drilling); West Elk Mine; Permit No. C-80-007 <br />Dear Jim: <br />Mountain Coal Company, L.L.C. (MCC) proposes to drill a maximum of three exploration holes <br />in Sylvester Gulch to ascertain information about the Oliver No. 2 Mine to assist us in our mine <br />planning for the B-Seam in this area. The locations of the three holes are shown on the enclosed <br />map, and identified as EEE, FFF, and GGG. <br />The holes will be completed and cased to allow for future monitoring. The casing will be 6-inch <br />steel casing completed into bedrock. The expected depth to bedrock is 20 to 40 feet. The inside <br />casing will be 4-inch PVC and will extend to within 40 feet above the total depth. The remaining <br />depth will be an open hole. A valve will be placed on the top of the hole to facilitate monitoring <br />and control the gas that may be venting out of the hole. The entire surface casing will be <br />enclosed in a small steel lock-box to protect the casing. The goal of the drilling project is to drill <br />into the Oliver No. 2 workings. If for some reason the hole does not penetrate the workings, the <br />drill rig will be moved over (on the same drill pad) and another hole attempted. 'The first hole <br />will be abandoned properly, as discussed later in this letter. MCC does not expect that it will be <br />necessary to handle water on the surface from the workings. <br />Two of the holes, FFF and GGG, will be drilled on the existing East Sylvester Gulch drill road. <br />A portion of the East Sylvester Gulch drill road, the road to RAV-4B, and a new road to be <br />constructed will be utilized to access EEE, which will remain temporarily to allow access for <br />monitoring. The road and pad dimensions are considered maximum disturbances. The following <br />table provides details regazding each of the holes: <br />HOLE ID ESTIMATED <br />DEPTH COMPLETION <br />INFO. ACCESS DRILL PADS <br />EEE 325 6-in. steel casing, Existing road & 50' x 50' <br /> 4-in. PVC 600 ft. of new <br /> casing, and open road construction <br /> hole (14-feet wide) <br />FFF 195 6-in. steel casing. Existing road 50' x 50' <br /> 4-in. PVC <br />