2009-04-07_REVISION - X200923100

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The coreholes ma4 intercept the "Y' and I went,nule Sandstones. In addition. the coreholes will most Ilk-el- , intercept the Lennox. Wadge and possihl\ Sage Creek coal units. It is not anticipated that the coreholes skill he intercept the underl\ ing fruit ('reek Sandstone with the exception of CC11036 which is being drilled in part to evaluate possibilities For a water well. Figure I. General S/rulii,n phic ('olunm Rnrrll ('urrrrl? Anw. shows the general stratigraph\ fur the Sage ('reek area. Stutac_r 1ot?u? a Ill: The general topo-raphy of the area is characterized b\ relativel, gentle north-northeast Facing, moderatelc sloping, side slope benches and ridges, with steep south-sout1mcst facing escarpments on the east and south end ofthe project area. Topooraphic relief in the proposed exploration area is approximately 6,500 feet to 7,200 feet. Geolo is Setting: Coal hearing strata of the project area are part of the Iles and Williams Fork Formations of the Mesavcrde Group. The coals of primarN economic interest are designated as the Middle Coal Group. and include the Lennox. Wadge, Sage Creek and Wolf Creek coal seams. These units and their stratigraphic sequences are illustrated in Figure 1. The proposed exploration area is located in the southern extension of- the WaskakiiSand Wash Structural Basin. The basin is bordered on the east the Park Range Anticline and on the soutimest by the Axial Basin Anticline. Stratigraphicalh. the Middle Coal Group was deposited het\yecn two regressive sandstone deposits. Surface expressions of these two sandstone units, the I N\ent\nlile Sandstone Menlher of the Williams Fork Formation, and the Frotlt ('reek Sandstone Member of the Iles Formation appear as prominent cliff-forming units throughout the W'illiains Fork Mountains. The coal seams in the project area occur mthin it localized structural basin. \yith the axis both trending and plunging to the north. It is defined h, the Tow Creek Anticline on the east. the Saue Creek Anticline on the \\est. The Dish ('reek Anticline and Washakie Syncline trend northwest through the project area. Dips range from approximately 9" along the cast flank of' tile Sage Creek Anticline. to 15 - 20" to the north. Faulting associated with the Tow Creek Anticline has been identified within the area b\ 11.5. Geological Surve, geologists. Other Faulting in the area is likcl,. but not well understood. and better definition of the occurrence and extent of faulting is one ofthe prinlan oh.jcctives of the proposed exploration program. Surface Water Resources: The project area is hounded on the north and noilimcst b\ Sage Creek. and to the cast and southeast by Grasse ('reek. perennial tributaries to the Yampa River. The drainage areas that Flow northwest toward Sage Creek are characterized by ephemeral tlows.. typicall} flomrig, milk in response to spring snuwnult and summer precipitation. Strh\\atersheds that drain casmard to Grasse Creek include Scotchnrln's Gulch and Annand's Draw and are characterized b\ ephemeral or intermittent streannflo\\s. The proposed exploration drilling will be conducted so as not to adversely impact am of the potentially affected drainages. SCC, as part of its Seneca II Mine and Yoast Mine operations, evaluated Grasse Creek. Scotchman's Gulch. Annand's Draw and Sage Creek for Alluvial Valle, Floors (AVI-s). The AVF evaluations %Ncre conducted in accordance mth Colorado program AVF guidelines: the CDRMS determined there \\ere no AVFs along Grass, ('reek. Scotchman's Gulch and Annand's Draw within the exploration area. fherc are several small fields along Sage Creek that sleet the AVF criteria, but the, are all upstream of the project area. BEM. as part of the Coal SuitahilO Review fir the Little Snake Resource Management Plan, evaluated lands with federal coal to determine if ?nining, would intcrruln, discontinue or preclude fanning operations. The BL.M did not identif'N' any AVFs in the project area. Groundwater Resources: Groundwater occurrence within the project area is gencrall\ limited to the Trout Creek and "1\vent\ mile sandstone units and the shallo\\ alluvial!colluvial aquifers associated \yith W Nh 09