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Upper Cretaceous Mesaverde Formation, which is overlain by the early Tertiary Wasatch Formation and underlain by the Upper Cretaceous Mancos Shale. The lease application is for the Upper B seam of the Mesaverde Formation; the seam ranges in thickness from 10 to 20 feet. The combined analysis of the coal seam is 7g to S~ moisture, lOt to 11$ ash, 0.5g to 0.6t sulfur and 11,000 to 12,000 Btu~s per pound. The tract contains an estimated 26.5 million tons of in-place B coal seam reserves. The total minable reseYVes are approximately 19 million tons of which 10 million tons are mi~e. iu~=~o-8-~ Outcropping on the tract is the Mesaverde Formation and Quaternary deposits. The Quaternary deposits are an unsorted mixture of soil and rock formed by various mass-wasting processes as landslides, earth flows, soil creep and debris avalanches. They also include river deposits. and slope colluvium as well ae Quaternary unconsolidated deposits derived from the Wasatch Formation. The coal bearing sedimentary strata of the Mesaverde Formation is relatively flat lying with a regional dip of 3.5 degrees to the north-northeast. Local dips of up to 7.0 degrees are also found. The USGS Geologic Map C-115 shows that there may be three or four faults crossing the Jumbo Mountain Tract. There is no surface evidence of Paults due to the colluvial deposits and surficial cover. The overburden overlying the B seam in the application area ranges from zero feet at the outcrop to approximately 1,200 feet. The potential for the discovery of conventional resources of oil and gas under the leased area is very slight. Dry wells have been drilled to the Dakota Sandstone a few miles to the southwest and to the northwest of the permit area. There is a possibility of finding methane in the coal seams. There are no oil and gas leases located on or near the application area. B. Vegetation The vegetation of the application lands is comprised of scrub oak and sagebrush with an understory of grasses. There are stands of aspen and Engelmann spruce-Douglas fir on the upper north facing slopes. The grasses and mountain shrubs that have been identified are western wheatgrass, Indian ricegrass,.oak brush, serviceberry, chokecherry, sagebrush, mountain brome and junegrass. C. Land Use The topography is characterized as steep north facing slopes on the southeastern margin of Grand Mesa. The application lands are approximately one mile south of the North Fork of the Gunnison River at elevations ranging from 6,600 feet to 8,100 feet above sea level. The application lands support two principal land uses, wildlife use and livestock grazing. There are no rights-of-way located on the application lands. Page 6