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• <br />CONFIDENTIAL INFORMATION <br />APPENDIX A <br />CONTINUED EXPLORATION <br />MINING METHODS, BASIC EQUIPMENT MINING FACTORS <br />NUMBER OF ACRES TO BE AFFECTED <br />Underground Mining Operations <br />Introduction <br />This Appendix is submitted to supplement the existing Resource <br />• <br />Recovery and Protection Plan and Logical Mining Unit to include a Cameo C <br />seam reserve in the Roadside North Mine. Previously, alf mining occurred in <br />the Cameo B sea~~~. Tile B Seam in the 2nd West Panel was extremely high in <br />ash (up to 48 percent). Along with the spars that have been present in other <br />areas of the mine, shale partings within the seam became so thick that the coal <br />seam actually graded into a carbonaceous shale seam. While reviewing the <br />geologic database to evaluate the.extent of the poor quality coal, data revealed <br />that the C seam was just a few feet above the B seam. Other reports also <br />indicated that the rock spars may be less frequent and "softer" in the C seam. <br />C Seam Exploration <br />Three core holes, UG-1 through UG-3, were drilled into the C seam from <br />the mine workings in the B Seam. Drill logs are shown in Exhibit 1. The C <br />Seam was about 20 feet above the B seam and the coal in all three holes was <br />about 6 feet thick. Analysis of the coal in each core indicated that the C seam <br />was better quality than the B seam in this area. The analysis results are <br />shown on the drill logs. <br />In October 1998, Powderhorn Coal Company submitted a Minor Revision <br /> <br />application to its Mining and Reclamation Permit with the Colorado Division of <br />Minerals and Geology, DMG, for an exploration mine in the Cameo C seam. <br />Three slopes were driven in a northerly direction into the Cameo C seam from <br />the Cameo B seam. The North Mains were advanced 1,000 feet in the C seam. <br />PHCC R2P2 __ Page 2 2-28-99 <br />