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COW CAMP PROJECT <br />NOTICE-OF-INTENT <br />SUPPLEMENTAL INFORMATION <br />3) Basis of Rights to Enter for Exploration and Reclamation <br />Table 1, Location, Ownership and Drillhole Dimensions, summarizes proposed corehole/drillhole <br />locations and surface and coal ownership at the 11 sites. Map 1, Colorado Coal Resources, LLC <br />Exploration Planning Map Drill Hole Locations 2007, a ] -inch:2,000-foot scale map, illustrates the <br />exploration locations. All of the proposed drill sites are on lands where the surface is owned by <br />Seneca Coal Company (SCC), a wholly-owned subsidiary of Colorado Coal Resources, LLC (CCR), <br />or surface access and use is allowed under existing surface use agreements with the surface <br />landowner (please refer to accompanying documentation in Appendix A). <br />4) Description of Land to be Affected <br />The proposed exploration area of approximately 440 acres encompasses portions of Sections 3, 10, 11 <br />and 16, Township 5 North, Range 87 West, and portions of Sections 20, 28, 32 and 33, Township 6 <br />North, Range 87 West, of the 6'" P.M., all in Routt County, Colorado (Appendix B presents the legal <br />description of the proposed exploration program). The area is approximately five miles southeast of <br />Hayden, Colorado. The proposed exploration locations are generally in areas previously disturbed by <br />historic exploration activities or agricultural operations, and have been located adjacent to existing <br />county roads, existing graveled coal haulage roads or unimproved ranch roads, where feasible. <br />Cultural resource clearances have been completed for the proposed drill sites (please refer to <br />accompanying documentation in Appendix C). Review of the proposed locations by the Colorado <br />Division of Wildlife (CDOW) did not identify any potentially impacted resources requiring <br />avoidance or specific mitigation measures (please refer to accompanying documentation in Appendix <br />D). The coreholes may intercept the Trout Creek, Twentymile and/or "P' Sandstones. <br />Surface Toooeraohy: The general topography of the area is characterized by relatively gentle north- <br />northeast facing moderately sloping side slope benches and ridges, with steep south-southwest facing <br />escarpments on the .east and south end of the project area. Topographic relief in the proposed <br />exploration area is approximately 6,500 feet to 7,200 feet. <br />Geologic Setting: Coal bearing strata of the project area are part of the Iles and Williams Fork <br />Formations of the Mesaverde Group. The coals of primary economic interest are designated as the <br />Middle Coal Group, and include the Lennox, Wadge, Sage Creek and Wolf Creek coal seams. These <br />units and their stratigraphic sequences are illustrated by Figure 1, General Stratigraphic Column. <br />The proposed exploration area is located in the southern extension of the WaskakUSand Wash <br />Structural Basin. The basin is bordered on the east the Park Range Anticline and on the southwest by <br />the Axial Basin Anticline. Stratigraphically, the Middle Coal Group was deposited between two <br />regressive sandstone deposits. Surface expressions of these two sandstone units, the Twentymile <br />Sandstone Member of the Williams Fork Formation, and the Trout Creek Sandstone Member of the <br />Iles Formation appear as prominent cliff-forming units throughout the Williams Fork Mountains. <br />The coal seams in the project area occur within a localized structural basin, with the axis both <br />trending and plunging to the north. [t is defined by the Tow Creek Anticline on the east, the Sage <br />Creek Anticline on the west. The Fish Creek Anticline and Washakie Syncline trend northwest <br />Cnw ('amp 141em NOI <br />szD) 1 <br />