2007-12-17_PERMIT FILE - C1981020A (2)

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I~ LJ 2.1.7 Protection of Other Resources No known resources such as oil, gas or other minerals exist within the mine plan area as shown on Figure 1.1-2. The Douglas Pass area contains two know oil and gas containing geologic structures, or producing oil and gas areas, the Coal Gulch and South Canyon Fields. There is no indication of structural traps in the area of this operation. The permit area is included in the Mesa-Gar Federal Oil and Gas Unit. This unit L J call for a multiple well program to explore for stratigraphically controlled Dakota sandstone gas production. A well drilled iri 1974, three miles north of the Permit Area, recovered water from the Dakota and was abandoned at a total depth of 5,545 feet in the Entrada formation. This well is the C and W Drilling Co., #1 Hitchborn Livestock NE SE Section 9, T7S, R102W. The Mesa-Gar Unit #1A Well drilled 1253 FSL 2120 FEL, Section 30, T7S, R101 W was abandoned after drilling into the Dakota at 5,175 feet. This well is two and one-half miles east of the Permit Area. Two other dry holes were drilled and tested through the Dakota formation in 1980. They are the Mesa-Gar Federal 28-1 and the Ed Young 6-4. The Mesa-Gar Federal 28-1 is located 2346 FWL 2429 FSL, Section 28, T7S, R102W, and was drilled to 5,057 feet. The Ed Young 6-4 is located 1956 FSL2305 FEL, Section 6, T7S, R102W, and was drilled to 5,600 feet. These dry holes, the lack of a closed structure, and the structural location of the Permit Area make oil and gas production in the Permit Area extremely unlikely. There will be virtually no impact on the groundwater resources as the Cameo and Carbonera seams are not water bearing within the mined area. The mine is located well above the alluvial valley fills and no direct disturbance of the alluvial valley fills and no direct disturbance of the alluvial aquifer occurred during the actual mining operation. Information included elsewhere throughout this application shows that mining did not extend to a point where a potential for impact will be realized. Monitoring wells have been established in the alluvium of East Salt Creek to confirm this point. Groundwater resources are detailed in Section 2.3.3, and 4.4 through 4.4.4. Permit Renewal 2-4 09/03