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• For the conventional drill sites, rotary drilling and coring on each site will be completed using a <br />rubber-tired truck-mounted drilling rig. To aid in the protection of the hydrologic balance and <br />protect other resources the company will utilize as small a drill rig as can safely and successfully <br />complete the job. In doing so, the requirements for access road and drill site disturbances are <br />lessened. Support equipment may consist of one or two water trucks, one rig-up truck, a pipe <br />truck, flatbed trailer, one or more air compressors, and/or boosters, a supply trailer and three 4 x <br />4 pickups for the drill crews and company representatives. This assembly is generally referred to <br />as a "drilling unit". One drilling unit is anticipated during the drilling project. <br />Water for drilling operations will either be pumped or trucked to the sites and obtained from Dry <br />Fork of Minnesota Creek. Pumping the water used in the drilling process, if possible, will <br />minimize water truck traffic on the temporary access roads thereby minimizing surface <br />disturbance. The use of these other potential water sources will be approved by the agency or <br />party owning the water rights prior to their use. In the event stock ponds are utilized, minimum <br />water levels will be established to ensure sufficient water is left for stock and wildlife. <br />Upon hole completion, one truck mounted geophysical logging unit will be used at each hole <br />location. If requested, Ark Land Company will retain in its files all drill and geophysical logs <br />and all un-analyzed drill cores for at least 1 year, and will make them available for inspection by <br />an authorized officer. <br />Estimated Size and Denth of Holes <br />• Drilling conditions are variable in the exploration area. The initial diameter of each drill hole <br />will be 8.0" to allow for the placement of up to 100 feet of surface casing. This casing is <br />centered and cemented in-place from the top of the hole. Unless continuously cored from the <br />surface, a smaller (5 7/8") diameter rotary hole will be drilled to core point (50 ft. above the <br />uppermost mineable seam). This 5 7/8" rotary hole will be cased if necessary to maintain hole <br />integrity. The primary drilling medium will be compressed air with mist/foam injection to aid in <br />the circulation of cuttings to the surface. If air and foam prove to be an insufficient medium, or if <br />lost circulation becomes a problem, drilling mud and lost circulation materials will be used. <br />The core retrieved from the hole will be approximately 3" in diameter although smaller diameter <br />core (17/8") may be used in some instances. The outer diameter of the cored portion of the hole <br />will be 5 inches or less. <br />Table 1 depicts the estimated depths for each of the proposed holes in the exploration area. <br />Modification of Drill Holes to Surveillance for Water Levels <br />If significant water flows are encountered during drilling, the pertinent regulatory agency will be <br />notified. At that time, it will be determined whether a well installation is required. The <br />necessary well permits will then be obtained from the Colorado Division of Water Resources. <br />• <br />9