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feature. Little or no extra time is spent to check grades since the final configuration requires a degree of irregularity and imperfection to mimic pre-mine conditions. 4. Fuel Costs As stated in our earlier correspondence, the price used for diesel fuel does not reflect the typical fuel used for off road equipment. What is appazently being used is either #1 or #2 "clear" diesel for highway use. The appropriate type and grade is #2 "red" (a.k.a. "dyed") off-road diesel. In comparison, the average delivered price for #2 "red" was only $0.93 per gallon for the last six months with a range of $0.82 to $1.02 per gallon, substantially less that what DMG's calculations reflect. We also purchase #2 "clear" for our underground equipment. Pricing for the two products are about $0.40 per gallon different when purchased at the same time. The average price for the "clear" fuel being $1.295 for the same period with a range of $1.21 to $1.35 per gallon. This equates to a range of $0.81 to $0.95 per gallon for "red" diesel. 5. Water Truck DMG maintains that a 5000-gallon water truck is needed to effectively serve the needs of the project. One of the primary aspects DMG used to justify the "need is moisture augmentation of the backfill to ensure proper compaction." If we were attempting to construct an engineered fill for supporting a structure such as a dam or building this may be the case. However, this is a reclamation project where, with the exception of the coal refuse, it is beneficial to have anon-compacted fill to allow for better moisture retention. Settlement is not an issue for the proposed land use as these slight irregularities benefit the site. Furthermore, there are no requirements for compaction in our permit for the reclaimed site beyond the refuse. Even at the refuse area we have never needed to add moisture to obtain adequate compaction. Refuse material is delivered to the site in a wet state and if stockpiled only drains to field capacity. This past summer we moved several piles of refuse that had been stockpiled in the mid 90s. These piles still contained sufficient moisture that they had to be spread to allow some drying prior to final compaction. A smaller highway legal water truck would provide better service for this project. Activities will be confined to relatively small areas as teams of equipment work in one azea. Tasks where longer hauls aze required are short lived and make use of hard surfaced or hard packed roads reducing the need for watering. Limited traffic for administrative purposes on other roads away from the main activities do not warrant watering and are not customarily watered on this or other mine sites. Furthermore, there may be a period of time where water will not be available at the main mine site and the source of water will require the use of a public road. While climatic conditions may occasionally increase the need for watering above 25% there will be times when watering will not be necessary. A single 2000-gallon highway legal truck is currently being used at the mine site to address all our normal watering activities. January 15, 2003 5 Permit Revision #4 Comments Blue Mountain Energy, Inc.