2007-03-27_PERMIT FILE - M2007021

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EXHIBIT A -Legal Description The total permitted pit area is approximately 9.9 acres in the E 1/2 of Section 16, TSN, R45 W of the 6th P.M., Yuma County, Colorado. The anticipated affected azea is 5.8 acres. Delineator boundazy posts will be set to mazk the pit areas as shown on the map. EXHIBIT B -Site Description a) Vegetation- Native grasses and sagebrush currently cover part of the pit area. The area where the pond is located is very sparsely vegetated. The major portion of the area has been established as a pond to catch excess water from the adjacent irrigation sprinkler. Soil Information - The Natural Resource Conservation Service soil maps show one primary soil within the pit area. That is Ascalon-Haxtun-Platner. The soils map shows that this soil lies at the end of an intermittent drainage area. These soils consist of deep, well drained soils that formed in loamy alluvium. Topsoil in these soils typically runs between 1-6" in depth. b) Permanent man-made structures A natural gas well and three meter reading houses, plus water storage tanks, lie within 200' of the mining area. These items all belong to Houston Exploration. The material to be taken from the pit is to be used for other Houston Exploration project. The mining will not affect the existing structures. c) Water resources One portion of the area serves as a tail water pit for the adjoining irrigation sprinklers. When excess water flows off the sprinkler, it is captured in a pond that is used by wildlife. The normal water table below the site is about 200 feet below the surface. The anticipated mining depth will be 20 feet. Unless there is excessive rainfall, water should not affect mining efforts. Rainfall runoff can cause the pit area to be unworkable for short periods. Rainfall in the area averages about 17 inches per yeaz. The site will generally not be impacted by water.