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A review of the data supports the conclusion that the transfer of water from D seam to the B seam had an imperceptible effect on the B seam water level. In addition, since the floor of the historic Somerset B Seam Mine portal is at the approximate 6090' elevation, there remains approximately 45' of elevation remaining before the water could exit the mine at that location. Exhibit 2 -Groundwater Information also contains the results of transferred water samples obtained on January 13, 2005 and June 8, 2005. The data suggests no anomalies. SC-1 Well -Rollins Sandstone Monitor well SC-1 is located just east of the reclaimed Sanborn Creek mine portal area. Well SC-1 was completed in the Rollins Sandstone, which is located 40 to 50 feet below the B- Seam. Monitoring data were historically collected from well SC-1 prior to any substantial mining in the B-Seam of the Sanbom Creek Mine. The SC-1 well is located up-gradient relative to the Rollins Sandstone unit which is located stratigraphicallyundey the footprint of the mining activities. Water in the Rollins Sandstone is confined to limited localized zones that are fractured and/or contained above the Rollins, as evidenced by water level measurements that are well above the • top of the sandstone member. Water quality is poor, with high total dissolved solids as sodium chloride. Inflow and recovery of the water levei in the drill holes indicates very low permeability and porosity of the sandstone. There has been some variability in the water levels measured in well SC-1 but there has been no apparent trend or indication of impact. No significant difference in the 2005 monitoring results from baseline or historical measurements was noted in well SC-1. The limited water quantity and poor water quality suggests there is limited transmissivity between the North Fork of the Gunnison River alluvium through the Rollins sandstone down- gradient towards the area associated with the Sanborn Creek Mine. SC-3 Well - B-seam Coal -Sanborn Creek Mine Monitor well SC-3 is located east of the Sanborn Creek reclaimed mine portal area along the entrance to the pre-existing ranch road to Coal Gulch. Monitoring well SC-3 was completed into the B Seam coal. Monitoring data were collected from well SC-3 prior to any substantial mining in the B-Seam of the Sanborn Creek Mine. The SC-3 well is up-gradient relative to the B seam underground mining activities but down-gradient from the North Fork of the Gunnison River The plastic pipe casing is squeezed at the 20 foot level making it difficult to lower a bailer. • Using a smaller diameter bailer we have found very minimal water available in the well. In fact there are times when the initial bailing of the well to remove one volume effectively drains the available water. The lack of water in the well and the poor water quality suggests there is little 13