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SENT BY~FSP~T, LLC, 02 .11-20- 1 7~31A 7 Hill Shale are known sources of gas and petroleum, but the relations of these units and • their resouttes to the FoR Hays (which may have acted as a migrational seal or barrier) has only recently been investigated (e.g, P.ice, 1984). No liquid or gaseous hydrocarbons are known from or have been recovered from the RGPCC property (Tract "B"). DRILLING PROCEDURES Richard M. Hipwell, professional geologist with Rio Grande Portland Cement supervised the drilling and monitored procedures on a daily basis. I was present For a portion of the drilling phase in March. fn addition, I reviewed the re-determined drill-hole locations established by Mr. Hipwell, which I believe will be representative of the proposed initial ten-year mining 61ock. Each site was professionally surveyed by a Colorado PLS, using ground coordinates, and exact surface elevations were recorded. Layne Westem of Denier is supplying the CME drilling rig. The project Consisted of 8- drill core sites, with seven in Tract "B", and one in Tract "A". Sites DDH-1101 through DDH-I 104 are in a straight line at the approximate center of the mineable reserve. This alignment will show across-section perpendicular to strike. An additional three holes were placed strategically to the east of the cross-section DDH-1108 was placed at hole # DDH-216 in tract "A" (location previously drilled in 1997), Mr. Hipwell and I jointly made stratigraphic logs of the cores. All core hole sites were bonded as per the regular Notice of Intent to Explore and reclaimed accordingly, • The drilling company (Layne Westem) was responsible for insuring that core sampling was monitored for core sample depth to the inch, and accurate accounting of cote recovery vs. core trot- Layne Westem supplied plastic core sleeves that contain the entire core in two-foot sections, each segment subsequently placed in standard waxed cardboard core boxes. These sleeves are tightly Sealed to insure against any loss of kerogens or organic cazbon. Individual samples may be taken at five-foot intervals or other so designated interval and placed in glass vials, sealed with Teflon scaled lids. All samples were maintained in the custody of Mr. Hipwell until such time as they could be carefully and securely transported to Commercial Testing and Engineering (CT&E) labs in Denver. Achain-of-custody was established between Mr. Hipwell and CT&E each time samples were submitted far testing. • t997