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3. Surface Topography The topography of the area is formed by the gently northwest dipping beds of the Williams Fork and Iles Formations. These beds are cut by steep, deeply cut drainages. The resulting topography is a series of parallel drainages and gently sloping ridges that are aligned roughly north-south. The ridges are terminated near the south end of the proposed area by east-west trending drainages. Topographic elevations in the proposed area range from about 8300 feet on the high points at the south end of the proposed area to a low of about 6900 feet at the north end of the proposed drilling azea. 4. Geology There are two formations potentially exposed in the proposed area. These are the Williams Fork and possibly the Iles Formations of the Mesaverde Group. The Iles Formation is the older and lowermost of the two formations. It consists of massive cliff forming sandstones, siltstones, and coal seams that aze generally thin and often lenticular. A regionally continuous, massive sandstone referred to as the Trout Creek Sandstone Member is located at the top of the Iles Formation. The Williams Fork Formation lies conformably on top of the Iles Formation (Trout Creek Sandstone Member). The formation consists of several series of alternating beds of sandstone, siltstone, shale, and coal. The Williams Fork Formation ranges in thickness from a few hundred feet thick to in excess of one thousand feet in thickness in the proposed exploration area. The coal beds of this formation are present in commercial quantities. Mineable coal thickness ranges from a few feet to tens of feet. Some of the coal seams in this formation are currently mined at the existing Colowyo Mine, east of the proposed areas of drilling. Similar coal seams in this formation are the target for this proposed definition and exploration program. 5. Surface Water Surface water drainage systems within the proposed area may include both perennial and ephemeral streams. Perennial streams in the area may include Wilson Creek, Collom Gulch and Straight Gulch. Low average flows on the order of 5-10 gallons per minute are typical for these streams. Significant variation in stream flow is seen on a seasonal basis, and is directly related to precipitation. Ephemeral streams in the proposed exploration area include Taylor Creek, Little Collom Gulch and the East and West Forks of Jubb Creek and the various upstream branches connected to the above-mentioned streams or other drainages. N9CCC ENGUUANIDMG1NO1 DOC106NO006 NOI Texl.doc - - - 1027/0.5