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West Elk Mine 2003 Annual Hydrology Report The shallow colluvial monitoring well GP-4 went dry in WY 2002 and was dry in WY2003. The water level drop in this well may be due to up-gradient diversion of surface water runoff in the area. Wells SOM-45-H1 and SOM-45-H2 have been affected by the underlying longwall mining in Panel 13. These wells are completed in the barren member of the Mesa Verde Formation above the F Seam. The interburden between this horizon and the mined interval is about 800 feet thick. The well casing in SOM-45-H1 collapsed between June and September 2002 and the well is no longer functional. The water level in SOM-45-H2 continued to drop (~10 feet) in WY2003, compared to 80 feet in WY2002. The continued water level fall indicate that ground water levels have not stabilized since mining operations ceased in this area in 2000-2001 or this may be a function of poor recharge due to several years of drought. The casings in wells 96-27-1 collapsed between September 2001 and April 2002 and casing in well SO.W.-1 collapsed between April and June 2002. These wells are no longer functional. Water levels in SOM-76 rebounded in WY2003. This may be due to water level recovery after mining Panel 13 (completed in years 2000 and 2001) or climatic conditions. S Well SOM 129-H showed a sharp rise in water level early in WY2002 of about 50 feet and remains high in WY2003. The cause of the water level change is not understood and MCC will watch this situation carefully. Well RAV-4b, completed in the B-Seam, showed a sharp drop in water level of about 36 feet in WY2003. This may be due to mining of the Panels 14, 15, 16, 17 and 22 and dewatering of the B- Seam. These panels are located up gradient of the Well RAV4b. Well 01-11-1, completed in the B-Seam, showed a rise in water level from November 2001 to April 2002 and has steadily dropped through September 2003. This may be due to mining of the Panels 14, 15, 16, 17 and 22 and dewatering of the B-Seam. These panels are located up gradient of the Well 01-11-1. The water level changes may also be a function of connectivity between the well and the North Fork. Flows in the North Fork were very low in the fall of 2003. No other wells showed changes during WY2003. 6.0 ADEQUACY OF THE MONITORING PROGRAM During the past 5 years the West Elk monitoring program has operated in accordance with Technical Revision No. 88 (approved in August 1999) and Minor Revision No. 208 (approved January 1998). The monitoring program in WY2003 remained the same as WY2002. 33 September 2004 HydroGeo, Inc.