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2004 Geologic Hazard Field Observations <br />South of Divide Mining Area <br /> <br />3.0 INTRODUCTION <br />The geologic conditions and subsidence processes expected during mining in the South of Divide <br />mining area aze discussed and evaluated in this report. Subsidence, as it relates to the geologic <br />and topographic conditions of this area, is based on 1) subsidence data from the West Elk Mine <br />monitoring network (see Exhibit 60B dated November 2004, for details), and 2) nine years of <br />annual subsidence observations in West Elk mining area, pazticulazly in the Jumbo Mountain, <br />Apache Rocks, and Box Canyon mining areas. <br /> <br />C1 <br />631-032.621 Wright Water Engineers, Inc. Page 5 <br />November 2004 <br />