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"CONFIDENTIAL INFOR*fATION" <br />Page Four <br />CALCULATION OF MINEABLE RESERVE BASE AND RECOVERABLE RESERVE BASE <br />It is the plan of the lessee to mine the Cameo "B" seam since it is the <br />• thicker of the two seams. The close proximity of the two seams (0-30' interburden) <br />precludes the mining of the Cameo "C" seam for safety reasons. Portions of the "B" <br />seam have already been extracted in the lease area. <br />OTHER SEAMS IN LEASE N0. C-078049 <br />Other seams existing above the Cameo "B" and "C" seams are the "D", "E" and <br />"F" seams, along with some lenses and rider seams. These upper seams, although <br />correlatable, are lenticular in nature, exhibiting a lack of continuity and limited <br />areal e::tent. Consequently, their average thickness is less than 28 inches and <br />they are not considered of mineable quantities. <br />r~ <br />L <br />• <br />