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COAL RESERVE QUALITY ENHANCEMENT DRILL PROGRAM <br />INTRODUCTION <br />The New Horizon Mine coal reserves are based on approximately 122 boreholes drilled between the mid-1980's <br />and 2002 The bulk were drilled by Peabody Coal Company in the 1980's. Western Fuels- Colorado (WFC) drilled <br />about 55 holes from 1993 to 2004. Occasionally, WFC needs to drill infill holes within the existing array to make <br />more certain of its' reserve estimations concerning vadous mining parameters such as coal quality, coal and <br />overburden thickness, etc. WFC anticipates that during the Fall of the year 2005 such infill holes will be needed. <br />PROGRAM DESCRIPTION <br />The planned drilling program will consist of the drilling of approximately 29 coal exploration holes in two difference <br />phases within the NH2 permit area. Phase I consists of 13 shallow, closely spaced, twinned rotary holes. The <br />intent is to investigate the nearoutcrop coal quality along the south side of Tuttle Draw. All 13 holes will be rotary <br />drilled to a point about 20 feet below the lower coal seam (LDX) for E-logging. After E-Logging, core points will <br />be determined and then the holes will be twinned by a rotary hole to a core point, then cored (3" diameter core) <br />through the coal sections, and then completed to 2or 3 foot below the LDX. Total depths will vary from about 30 <br />feet to 80 feet. Phase II will consist of 16 widely-spaced holes located between existing holes in the central and <br />western portion of the permit area. Approximately half of the 16 holes will be twinned and cored as in Phase I. <br />Holes depths will range from about 50 to 130 feet. <br />Rotary hole diameters for the top portion of the twinned holes will be between 4.5" and 5.5", the outside core <br />diameter will be about 4.0" to 5.0", and the rotary subddll will be between 3 7/8" and 5.5". Total amount of holes <br />drilled, due to twinning, is expected to be about 50. The proposed drill sites are shown below in Figure 2.05.3(3)10- <br />4 <br />The equipment to be used will consist of a medium-sized single-wall air rotary truck mounted drill rig similar to a <br />Portaddll TKT, or a truck mounted core rig. Either type of rig is capable of drilling the holes needed. Support <br />equipment will include a 1500 to 3000 gal water truck, boom truck and drillers' pick-up. Actual equipment used <br />and drill hole dimensions will depend on the conVactor selected to do the work. <br />EARTHMOVING REQUIREMENTS <br />Phase I drilling will require no road building and only three of the 13 drill pads will need earthmoving. The Phase <br />II drilling, as it is located on faidy level farmland, will require neither road building or pad construction. <br />DISTURBED AREA <br />Each of the three pads will be approximately 30 feet by 60 feet (1,800 it2) in size. Total disturbed area is estimated <br />at about 5,400 R2 or 0.12 of an acre. The three drill sites that will need pads are PDH2005-04, O5, & 09. <br />AQUIFER IMPACTS <br />Sec, 2.04.7 of the Permit states that the overburden, coal and underburden zones all have their own distinct <br />aquifers. <br />(Revised 09/05) Attachment 2.05.3(3)10- 25 <br />