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SAGE CREEK PROJECT <br />2009 Exploration Program <br />NOTICE-OF-INTENT <br />SUPPLEMENTAL INFORMATION <br />3) Basis of Rights to Enter for Exploration and Reclamation <br />Table 1, Sage Creek Project - 2009 Exploration Program Drillhole Location and Ownership, <br />summarizes corehole/drillhole locations and surface and coal ownership at the 15 sites Sage Creek <br />Holdings, LLC plans to drill as part of the 2009 Exploration Program. Map 1, Sage Creek 2009 <br />Exploration Program, a 1-inch = 3,000-foot scale map, shows the exploration locations. All of the <br />proposed drill-sites are on lands where surface access and use are allowed under surface use <br />agreements with the surface landowner; the right to explore and prospect for coal is granted through <br />existing leases and licenses. Right-of entry agreements are found in Appendix A. <br />4) Description of Land to be Affected <br />The proposed exploration area of approximately 600 acres encompasses portions of Sections 3, 4, 5, <br />10, 15 and 22, Township 5 North, Range 87 West, and portions of Sections 32 and 33, Township 6 <br />North, Range 87 West, of the 6 h P.M., all in Routt County, Colorado (Appendix B presents the legal <br />description of the proposed exploration program). The area is located approximately five miles <br />southeast of Hayden, Colorado. The proposed exploration locations are generally in areas previously <br />disturbed by historic exploration activities or agricultural operations, and have been located adjacent <br />to existing county roads, existing graveled coal haulage roads or unimproved ranch roads, where <br />feasible. <br />Cultural resource inventories have been completed for the proposed drill-sites. The archeological/ <br />cultural resource documentation is presented in Appendix C. <br />Colorado Division of Wildlife (CDOW), in partnership with federal land management agencies, <br />recently implemented a conservation plan for the greater-sage grouse (Colorado Greater-sage-grouse <br />Conservation Plan, CDOW, 2008). The plan recommends a 0.6 mile breeding season buffer for <br />Greater sage-grouse and a 0.4 mile breeding season buffer for Columbian sharp-tailed grouse. <br />Exploration site ccu046 is within 0.6 miles of an active sage-grouse lek. Exploration sites ccu038, <br />039, 043, 044, and 048 are within 0.4 miles of an active sharp-tailed grouse lek. To minimize short- <br />term impacts, Sage Creek Holdings, LLC (Sage Creek) will schedule the exploration activities at <br />these six sites outside the nesting season which takes place during May and June. <br />Sage Creek has consulted with the CDOW regarding potential impacts to grouse habitat in the <br />exploration program area. CDOW biologists surveyed the 15 proposed drill sites in November 2008. <br />CDOW does not anticipate any unacceptable impacts to grouse the lek sites and or breeding habitat as <br />a result of the exploration activities. However, CDOW has recommended an appropriate season for <br />activities at each exploration site to minimize potential impacts to grouse. Exploration sites ccu034, <br />035, 036, 037 and 040 are located in marginal or non-grouse habitat and can be drilled at any time of <br />the year. The remaining 10 sites occur within grouse habitat and drilling activity at these sites should <br />abide by the nesting and breeding seasonal stipulation (May 1 to July 1). Two sites, ccu038 and 043) <br />were identified as being particularly suited for winter drilling (January 1 to March 15). The CDOW <br />wildlife consultation for this exploration program is provided in Appendix C. <br />Sage Cnek Proimf - 7009 NOI <br />01/08109 1