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The applicant has conducted laboratory permeability and porosity tests on twenty-three samples of selected sandstone intervals collected from cores. Because of the lack of correlation, core samples were selected from those intervals that appeared to be the most permeable. Measured values of the vertical intrinsic permeabilities of the sandstones of the Raton Formation fell within a narrow range of 0.12 - 1.65 millidarcies. Horizontal intrinsic permeabilities were determined for 5 samples. Their values ranged from 0.08 to 2.4 millidarcies. The test results indicate that the channel sandstones in the Raton Formation in the vicinity of the New Elk and Golden Eagle Mines are quite uniform with respect to permeability, even though these sandstones are vertically and horizontally discontinuous. The applicant has also provided the results of three pump tests conducted at the Golden Eagle Mine. In two wells (LA 221A and LA 218A) the open-interval available for water entry included the Maxwell seam, and various thicknesses of shale, siltstone, and sandstone immediately above and below the coat seam. No significant water was encountered in either hole until the Maxwell Coal Seam was penetrated. Therefore, the permeability values determined are for the coal. The tests found permeab1'lities of 0.02 and 0.04 ft/day, transmissivities of 0.56 and 1.98 ft1/d, and storage coefficients of 1 x 10-5 and 8 x 10-5. The permeability and transmissivity values are low and the storage coefficients are indicative of confined aquifers. The third well (LA 264) was designed to provide an assessment of the water bearing capacity of the overburden in addition to that provided by the core permeability tests. The open interval in this well began at a depth of 62 ft. and ended at a depth of 276 ft. During drilling, water inflow was encountered at about 72 ft. The inflow was estimated to be about 15 gpm and no significant increase in discharge was observed over the remainder of the hole. It is probable that a thin fracture zone at the 72 ft. level accounts fur most all of the water produced by this well. This well had a permeability of 0,42 ft/d and a transmissivity of 90.7 ft2/d. The location and geometry of the Purgatoire River does not appear to be related to the occurrence of fractures, jointing, or faulting. Faults have not been reported in Golden Eagle workings beneath the surface streams. In fact, with the exception of the water bearing fracture zone encountered in the Second Right entries, no faulting has been reported in the mine. The Allen and Maxwell seams are confined artesian aquifers in the general area. The coal seams are confined by the shales and siltstones of the overlying Raton Formation and the underlying Raton and Vermejo Formations. Ground water flora in the coal is through coal cleats and minor fractures. The coal seams are recharged by old mine workings and oxidized coal/burn zones along the coal outcrops, and by surface/alluvial systems at the coal subcrops in stream valleys. The major recharge area for the coal seams adjacent to the mines are located just west and -14-