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Page two Once Bear moved onto the property, cleanup of the old Clazk Mine started. Beaz cleaned up thousands of tons of rock and supported the roof for 2500 feet of the C seam before Beaz could move imo full production. This clean up took Bear over 1.5 years to complete. As Bear continued to mine the C seam, production panels were developed and sealed. These sealed areas were continuously monitored by Beaz Coal and MSIiA. At no time did Beaz have any elevated Cazbon Monoxide problems within these production panels, but did experience elevate CO from behind the seals within the old Clazk Mine. MSIiA required the atmosphere in front of these old workings seals to be kept clear of dangerous gases and thus Bear had to install low pressure stopping in front of the old workings seals to keep the CO from entering the ventilated areas. ~ Once Bear mined all the mineable reserves from the C seam, a shaft and slopes were developed into the underlying B seam. The shaft and slopes were installed in by the old B seam workings of the Clark Mine. Again, approximately 2500 feet inby the portal areas. Mining continued in the B seam and production panel were mined and seal with no problems of a mine fire or elevated Cazbon Monoxide readings within their workings. In November, 1996, with almost all of the mineable reserves mined from the property, Bear experienced a large cave in near their ventilation fan. At this time Beaz could not see an economical future in continuing to mine this property. It was decided that the Bear Number 3 mine would be closed and sealed. The equipment was removed from the mine and permanent seals were installed in January, 1997. All three of the portals were sealed with approved foam seals with additional roof support put in azound all three seals. The seals do have a 4" water line approximately eighteen inches from the floor. These water lines exited into washed river rock and fabric was laid over the river rock. The purpose of the water lines was to discharge any water that could possibly accumulate behind the seals. Prior to the backfilling process, no water exited these water lines and there was no trace of Carbon Monoxide from these seals. The final backfilling started in the spring of 1997, with material being pushed into the portals with a backhoe. Then the final reclamation started. At no time was there any notice of mine fire or outcrop fire. In the picture that was provided with the four different features, it will be noticed that feature 1, 2, and 4, are out side of the C seam outcrop. The only way these features could possibly be exhausting heat would be if the underlying B seam was the problem, which is in agreement with what has been stated about the old fire in the Clark Mine.