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Coal Methane Draina3e Project - Ponelr 16-24 Werl Elk Mine • Aage 2-77 elevated methane, MCC requested and the USFS and CDMG approved MDW installations for Panels 14 and I5. Eighteen MDWs were drilled and completed. Drilling and installation of methane exhausters For Panels 14 and 15 were completed in December, 2001. The drill sites and access used for the approved Panels 14 and 15 MDWs were built in locations where previously constructed exploration drill pads and associated access roads had been partially reclaimed. Approximately 5 miles of new roads were constructed where roads had previously been constructed and then been obliterated during exploration drilling. One mile of new road was constructed in a previously undisturbed location. These new temporary roads remain in service for continuing operation and maintenance of the MDWs but will be obliterated when the associated MDWs aze no Longer needed. For these MDWs, 5 drill pads and approximately one mile of new road were constructed. 2.5.3 Coal Reserve Leasing and Permitting The West Elk Mine Long-Range Plan includes mining of currently unleased federal coal south of the project azea within the next ten years. Approximately 44 millions tons of coal within this southern area aze included in the Long-Range Plan. Other unleased federal coal reserves exist east of the project azea, but these eastern reserves are not included in MCC's Long-Range Plan as there is limited coal reserve information available. The limited exploration data available indicates coal exists in this area, but only additional exploration can confirm its presence, continuity, mineability, and chazacteristics. Prior to applying for a lease(s) for these unleased reserves, a prospective applicant would likely propose and conduct exploration to prove the southeast reserves and evaluate their value relative to the required investment for pursuing and acquiring the lease, permitting, and development and recovery of the reserves. If the occurrence and relative value of the additional reserves are confirmed, the applicant would likely pursue a lease by application process with the BLM. The leasing process includes nomination of the lease; preparation of leasing and environmental evaluations of the leasing proposal; and, if the evaluation results in a decision to proceed with leasing, a competitive bidding process, which would be open to any interested pazties. The successful bidder would have to develop mine plans and prepaze and submit a Mining and Reclamation Permit for approval by both the CDMG and OSMRE. Site-specific environmental analyses would be required and conducted by the USFS as the surface management agency. Other required federal, state, and local, permits and approvals would also have to be prepared, submitted, and approved prior to initiation of mitring activities. 2.5.4 Past, Present, and Future Coal Exploration Drilling Between 1960 and the late 1990's, about 40 drill sites were constructed and rehabilitated within the project area. All of the sites have been reclaimed, but some of the access road prisms remain in-place. Some rehabilitated roads have been returned to service for coal methane drainage acdvides. Vegetation production is good within the road corridors that remain in a reclaimed and obliterated condition. Motorized ATV use occurs on trails established on more than half of the reclaimed roads. In 2001, two exploration drill pads were constructed. One drill pad was within the project azea and one was north of project azea on private land. About 2 miles of temporary roads were constructed where exploration roads used to exist In the next 5 to 10 yeazs, coal exploration could occur in an azea about 2.5 miles south of project azea. About 11 drill pads and 6 miles of new temporary road would be needed. MCC has submitted an application to the BLM for an exploration license for the Sunset Trail Exploration azea. Required environmental analysis of the Sunset Trail exploration license application has not been initiated. Coal exploration could also occur within 5 to 10 years in an area east of the project area and Deep Creek. Environmental Arrenment P: PP/Aluw.(aJCN£1/Oi.J i/i/4)I:/ I:ITr J/J/NA