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1. <br />a) Drill holes completed to date are shown on attached map and are <br />designated in sequence as BSW0701 through BSW0710. Both sets of <br />holes BSWD702 and BSW0702A, and BSW0708 and BSW0708A were <br />drilled from the same respective pad sites. The second holes were <br />required to acquire core of the targeted coal seam. <br />b) Drill hole BSW0706 (old site G) was relocated 2000' northwest due to <br />topographic concerns. All other holes drilled in 2007 are on proposed <br />locations. <br />c) On the west side of the exploration area significant road construction <br />includes re-establishing the roads on Munger Ridge to BSW0706, <br />BSW0708, and BSW0710 including the new access road segments to <br />BSW0708 and BSW0710. <br />On the east side of the exploration area significant road construction <br />includes re-establishing the road from BSW0703 south to Hatchet Canyon <br />and the new access road segments to site K and L. Sites I,K, and L were <br />not drilled in 2007. <br />d) All drill rigs, test equipment, and construction equipment has been <br />demobilized from the exploration area. <br />2. Reclamation activities include plug and abandonment of all holes drilled in 2007 <br />as per 43CFRII 3484.1(a). Associated pits for drill mud (slurry) were cleaned of <br />debris and backfilled. Drill pads were regraded to approximate original contour <br />(AOC), salvaged topsoil was distributed, and the areas seeded and mulched. <br />The re-established and new access roads to BSW0706, BSW0708 and BSW0710 <br />were regraded to AOC, seeded and mulched. Native boulders, brush, and shrubs <br />moved during construction were brought back into the road alignment to aid in <br />reclamation. <br />The reclaimed road access from existing BLM roadways were roughened with a <br />pock and gouge method and blocked with native boulders to deter ATV access as <br />requested by the BLM. <br />3. Difficult and unstable formations above the targeted coal horizons required <br />modification of the drilling procedure from air/foam to mud slurry and the <br />installation of temporary casing to control the upper portion of the hole. The mud <br />slurry and casing slowed the drilling schedule so that 10 of the projected 16 holes <br />were completed in 2007. <br />