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RECEIVE® <br />MAR 0 4 2002 <br />• MOUNTAIN COAL <br />- \ - COMPANYL.L.C. <br />A suhsidiary o(Arch Wes~em Resources, LLC <br />August 13, 2001 <br />Ms. Lynn Lewis <br />Bureau of Land Management <br />Uncompahgre Basin Resource Area <br />2505 South Townsend Ave. <br />Montrose, CO 81401 <br />Division of Minerals and Geology <br />West Elk Mine <br />P.O. Boz 591 <br />5174 Highway 133 <br />Somerset, CO 81434 <br />(970)929-5015 <br />Far (970) 929-5595 <br />Re: Mountain Coal Company LLC (MCC), West Elk Mine; Permit No. C-80-007; Minor <br />Revision 281, Request for Approval from the Bureau of Land Management (BLM) of <br />Exploration Drill Pad EEE and Drill Hole 2001-11-1. <br />• Dear Ms. Lewis: <br />MCC is requesting a minor revision to the mining and reclamation permit for an additional drill pad <br />and exploration drill hole No. 2001-1 1-1. MCC requested authorization from the Colorado Division of <br />Minerals and Geology (CDMG) to construct and conduct drilling operations from pad EEE on this <br />same date. Included with this submittal are the biological and cultural assessments and a map <br />depicting the drill pad location. Also included is a schematic showing the proposed completion. It is <br />anticipated the drill hole will serve as a water monitoring hole in the B-Seam at completion, however, <br />because of the potential for suspected methane liberation and our previous experience of drilling just <br />south of the North Fork of the Gunnison River, MCC will address the feasibility of a water monitoring <br />well at completion of drilling. <br />The proposed drill pad and exploration hole is on BLM surface-owned property and is situated on <br />MCC's Coal Lease COC 56447 (Box Canyon Lease) and within the current permit area boundary. The <br />specific location has been flagged in the field and is located in Section 11, T.13 S., R. 90 W., 6`s <br />Principle Meridian. <br />The biological and cultural reports from our contractor (Greystone Consultants) indicate that there are <br />neither threatened, endangered, sensitive species, nor cultural resources present at this pad location. <br />The approvals from the BLM and CDMG for this pad location and drill hole are expected this week. <br />As soon as the approval is granted to MCC from the BLM to construct the pad and drill the exploration <br />• hole, copies of the approval decision will be forwarded to the CDMG. <br />