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Peak Project Management, LLC <br />January 7, 2006 <br />34115 County Road 20.8 <br />Trinidad, CO 81082 <br />Telephone/Faz: (719) 846.4975 <br />RECEIVED <br />JAN 1 p 2005 <br />Kent Gorham <br />Division of Minerals and Geology Div'r.;ion otMinerals 8 Geology <br />1313 Sherman Street, Room 215 <br />Denver, CO 81082 <br />Re: Golden Eagle Mine <br />Methane Assessment <br />Dear Mr. Gorham: <br />Enclosed is the 2005 Annual Report, Methane Assessment Golden Eagle Mine Area <br />presenting a review of the data gathered in an area east of the Golden Eagle Mine. The <br />investigation has been conducted by Gn;ystone Environmental Consultants Inc. <br />Greystone's analysis concludes that the "average methane concentrations have shown a <br />decreasing trend in the origina122 points that have been monitored since March 1999 (an <br />average decrease from 53.7 to 29.3 percent). Additionally, average methane <br />concentrations have decreased in the existing 35 points monitored since the last <br />monitoring report in 2004 (an average decrease from 38.4 to 32.3 percent)." <br />Perhaps, more significantly, "vegetation was observed to be recovering during the 2005 <br />sampling event in areas where methane concentrations had decreased. The effected area <br />of vegetation during the 2000 survey was about 146 acres; the effected area of vegetation <br />during the 2005 survey was about 32 acres, the same as in 2004." <br />Two mechanisms have been postulated to explain the methane migration to the surface: <br />1. Coal mining and the resulting dewatering of the surrounding strata may have <br />allowed methane to migrate toward the surface. This may have been initiated <br />by mining in 1-Right and 2-Right in 1988 where a geologic anomaly was <br />intercepted releasing significant volumes of water and gases into the mine. <br />These longwall gate entries are shown on Figure 1, Site Location Map, in the <br />