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DESCRIPTION OF OPERATING PLAN AREA <br />The proposed methane drainage drilling for 2005 will occur over MCC's West Elk <br />Mine longwall Panels 24, 20 and 19. Sixteen methane drainage wells are planned over <br />portions of Sections 14, 15, 22, 23 and 28, of T13S, R90W, 6a' Prime Meridian, Gunnison <br />County, Colorado. Ten of the proposed wells are within the current permitted coal mining <br />areas on coal lease COC-56447 held by Arch Coal Inc. Two of the proposed wells are <br />within the current permitted coal mining areas on coal lease COC-1362 also held by Arch <br />Coal Inc. The remaining four proposed wells are on MCC's property. <br />Other activities associated with the drilling will occur in Sections 26, 27, and 3336 <br />of T13S, R90W and Section 2 of T14S, R90W, 6`sPM. These other activities may include, <br />but aze not limited to, clearance surveys, locating and flagging proposed road and pad sites, <br />monitoring and maintenance of methane exhausters and monitoring of reclamation <br />progress on reclaimed roads and pads within the project azea. <br />MINE PLAN AND SRP <br />MCC is currently mining Pane124 as projectedm MCC's 2005 Budget Plan. Panel 24 is <br />scheduled to be completed in October, 2005 (See Map 1). Mining of Panel 19 will commence <br />approximately 30 days after Panel 24 mining is completed. Panel 19 would be completed and <br />quarter, 2006. MDWs for both Pane124 and 19 are to be completed in the 2005-drilling season, <br />June-October 2005, as well as MDW holes into the gob areas of Panel 13. One MDW hole will <br />also be completed into Pane120 for methane relief of development mining for Panel 19 and <br />20.One hole is also to be completed into the southwest comer of Pane123 for methane relief <br />during the mining of Pane124. <br />MCC will complete as many of the listed MDWs as possible, understanding that <br />completion of these specific wells is a function of several factors. <br />It is the aforementioned coal production schedule that drives the need for the listed <br />MDWs. If this schedule vazies going forwazd, the need for more or less MDWs would be <br />necessary. <br />If this schedule varies MCC will contact Forest Service and discuss these <br />corresponding needs resulting from the schedule variance. <br />Also, affecting the number of MDWs is the magnitude of methane encountered as <br />mining proceeds. Current well plans are based on the best information available at this time. <br />However, as the development of future panels progresses more information is made available <br />which will allow MCC to adjust well plans accordingly. In addition as panels <br />