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(~ Hock Logic <br />+^onsulting LLC <br />Memorandum <br />Date: 12 May 2006 <br />To: Collin Stewart <br />Ry Stone <br />cc: Bill Bear, Greg Hunt <br />From: Brad Lindsay <br />Rock Logic Consulting <br />PO Box 544 • Cedaredge, CO 81413 <br />Phone: (435) 851-9044 • rocklogicconsulting@gmail.com <br />Brad Lindsay • Consulting Geologist <br />Subject: Spring 2006 Subsidence Crack Mapping <br />Field Survey <br />A detailed field survey was conducted above the B1, B2, and B3 longwall areas on May 6, <br />2006 and May 8, 2006. Roadways in these areas ware walked or driven over slowly to <br />observe subsidence cracks. Areas between and beyond the roads were hiked. Each new <br />crack was photographed and the orientation, length, width, and vertical displacement were <br />measured. Areas at the north end of the property above D7, D8, and D9 longwall panels <br />were driven over slowly to observe healing of cracks identified in that area in 2004 and to <br />look for any new evidence of cracking. <br />Observations <br />The majority of cracks identified in the 2004 and 2005 surveys have healed or are in the <br />process of healing. Many of these cracks are no longer visible. New cracks were observed <br />over the B 1 and B2 longwall areas. No cracks were observed over the B3 longwall area or <br />the north areas of the property. As has been observed in previous surveys, the majority of <br />cracks appear at topographic high points. Ten new cracks, or series of cracks, were identified <br />and mapped as a result of this survey. The widest and longest cracks were found along the <br />northeast edge of the B 1 panel. Three areas of slumping over the current mining area were <br />identified. The largest slump identified as 10-06 appears to be at least two or three years old. <br />Vegetation and moss are observed on the slump surface. The two other small slumps are in <br />the road cut of the Stevens Gulch Road and formed in the last two years. Several areas of <br />