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<br />a 50 foot boundary. strip (19,015 tons) and then using a 507, recovery <br />factor on the rer..aining acreage. This results in a total of 240,723 <br />tons. <br />It is anticipated that room aad pillar methods will be utilized for <br /> <br />the extraction of this coal. Because of subsidence, it is doubtful if <br />this block will ever be completely pillared out. <br />Lease C-020740 <br />Mineable Reserve Ease <br />(Cameo) <br />Avg. BTU/Pound <br />Catego n• Acres Avg. Thickness Tons (As Received) <br />Measured <br />Indicated 40.00 6.95' 500,040 10,224 <br />Inferred - - - - <br />Recoverable Reserve <br />(502 Recovery) <br />Category Acres Avg. Thickness Tons <br />Measured - <br />Indicated 38.48 <br />Inferred - <br />3. Palisade Seam <br />6.95' 240,723 <br />This seam does not need to be calculated far a "Reserve Base" <br />on the lease because its thickness is less than 48" in adjacent holes. <br />Based on information available thickness of coal in the adjacent holes <br />was 2.11' in CC-76-1 and 0.48' in CC-76-5. The Palisade seam is about <br />400 feet below the Cameo seam. <br />• <br />