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The general geology and hydrology of this mining district has been described in previous permitting actions,i.e. • original application and updated with PR-3. During 1997 a drilling program was conducted to further define the geologic setting in the remainder of the EMD. During this program particular attention was given to defining the Wadee seam parting that defines the southem limit of the EMD. Drill holes 97-001 and 97-003 were used to define the southern mining limit. Both of these holes showed an inseam parting of 1.9- 2.5 feet and thinning of the seam. The overlying stratigraphy is the same as previously discussed. This information was used to finalize the mine plan as presented on Map 23. Drill site 97-011, which was designed for multiple holes, will be used to provide a better understanding of the fault as it occurs in the North East submains. Three borings were advanced at this location to determine the location and magnitude of the fault. This was done by advancing two boring on the east side of the fault, with each boring intersecting the fault. Another boring was advanced on the west side of the fault into and through the coal seam. A deviation log was run in each of the holes to allow for accurate placement of end point of boring. This data, along with the other geophysical information, will be used to correlate depth and seam thickness between each boring. After the data is processed, the TCC geologist will be able to provide a better definition of the fault through the submains. TCC is awaiting receipt of the final geophysical data and once available the fault definition process for this area will be completed. The information will be used to prepare a cut sequence through this area. The expansion of the mine into the remainder of the EMD will see the continued development of the reserves located in the Twentymile Park Basin. As discussed previously, this is an enclosed ground water basin which is rimmed by outcrops of the major lithologic units. The units within this area include the Fish Creek Sandstone (a local sandstone unit), Twentymile Sandstone, Marine shale, Wadge overburden (which includes the Wadge seam), and the Trout Creek Sandstone (which is a marker bed for TCC). TCC has not seen any deviation in the vertical orientation of these units over the entire property, except for displacements caused by faults. . As stated above, the Foidel Creek mine is operating in a closed ground water basin. TCC has completed monitoring wells in the following formations within this basin: Twentymile Sandstone, Wadge Overburden, Trout Creel Sandstone and alluvial wells in the alluvium of Foidel, Fish, Middle and Trout creeks. The hydrologic gradients aze towards the center of the basin. The EMD will continue mining to the south up dip away from the center of the basin and immediately east of the fault and steep grade zone associated with an anticline. As TCC continues its mining the focus of its hydrologic monitoring program will be on the Twentymile and Trout Creek Sandstones. The EMD fault was first encountered in the 10 Right gateroad and had a displacement of 22 to 23 feet, in the 9 right gateroad the fault had a displacement of ]3 to 15.5 feet, in the 8 Right gateroad the fault had a displacement of 8 to 15 feet, in the 7 Right gateroad the fault had a displacement of 8 to 10 feet and in the 6 Right gateroad the fault had a displacement of 13 feet. The faults were relatively dry when encountered and did not yield significant flows to the mine. This is evidenced in the Annual Inflow reports. The mine plan has been designed [o eliminate mining through the fault and up the steep grade in longwall panels 7 Right through 2 Right. TCC mined through the fault and the steep grade zone in the 9 Right and 8 Right longwall panels before making the decision not to mine through these conditions again. This combination of mining conditions makes it impossible to mine coal in an efficient and economic manner. • ,.,;, yr,;1J ~~ PR 99-OS 2.04-16.1 5/25/00