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22TG3E3XC and 22TG464XC Sample Hole(s) Project Plan Minor Revision 328 Page 2 of 11 PROJECT DESCRIPTION The proposed project consists of drilling up to two (2) sample holes, and wells to initially facilitate monitoring/sampling, and then injection of water, foam, and nitrogen into a hotspot, if required, in the B Seam. The proposed sample holes are in Section 22, of T.13S, R.90W, 6`h Principal Meridian, Gunnison County, Colorado. The proposed project is within the cuaent permitted coal mining area (Permit Number C-80-007) and on the east fork of Sylvester Gulch. The wells will be located on Federal Coal (BLM) Lease COC-056447. The drill hole numbers aze 22TG3E3XC and 22TG4E4XC. The sample holes will be drilled in the azea approved under TR-96 and subsequent approvals for the annual operating plans i.e. MR-306 (2005), for Methane Drainage Wells. MCC's overall plan for drilling and reclaiming MDWs was originally approved by CDMG on 15 July 2002 as Technical Revision 96 -Project Plan for Methane Drainage Wells for Panels 16, 17, 175, 18-24. The Forest Service performed an Environmental Assessment of MCC's Methane Drainage Wells Plan, and approval was received in the Decision Notice and Finding of No Significant Impact, May 31, 2002. These two proposed sample holes are in the overall project area but were not proposed for inclusion in the US Forest Service reviews. As such, these wells are the subject of this separate Minor Revision. Because these wells are not on US Forest Service managed lands, US Forest Service approval of their installation will not be required. Approximately 2,500 feet of new 14-feet wide road will be needed to access the drill pad location. The attached Proposed MDWs and New Road Construction for 2005, Map 2, at a scale of 1" = 1000', depicts the general location of the proposed drill pad, new road, and proposed methane drainage wells (part of the 2005 MDW Project). SURFACE TOPOGRAPHY The elevations of the proposed borehole locations range from approximately 6800 ft to 7200 fr. The terrain is comprised of steep slopes and mesa tops formed within the Wasatch and Mesa Verde Formations and the colluvium and alluvium layers of the slope debris. The principle drainages in this area aze unnamed tributazies to Deep Creek that is tributary to Raven Creek that is tributary to the North Fork of the Gunnison River. GEOLOGY The proposed Project would include drilling along the southeastern edge of the Piceance Basin within the Somerset Coal Field, occumng on the Somerset U.S.G.S. 7 1/2-minute quadrangle map. Initial geological work, in this azea was, completed by W. T. Lee (1912), who reported his findings in, "Coal Fields of Grand Mesa and the West Elk Mountains, Colorado" (USGS Bulletin 510}. Later in 1948, Ward H. Johnson published a USGS map of the