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SL,-Z <br />1 <br />Vessels <br />Coal Gas, Inc. <br />www.vesselscoalgas.com <br />DEC 0 6 2007 <br />December 5, 2007 Div?linin u1 ?ieciarnation, <br />9 and Safety <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />Attn. Jason Musick <br />730 17th Street <br />Suite 510 <br />Denver, Colorado 80202 <br />Office 303-534-0468 <br />Fax 303-534-0487 <br />Toll Free 1 + 666-372-5890 <br />E-mail info@vesselscoalgas.com <br />Re: Horizontal Drill Holes <br />Coal Ridge C-84-065 <br />Gentlemen: <br />We are writing in response to your letter dated Nov. 26, 2007, to Mr. Backer of <br />CB Minerals (copy attached). <br />Vessels Coal Gas Inc., drilled 3 wells along the Grand Hogback, west of the Coal <br />Ridge Mine location and outside the Coal Ridge Permit area, under a Form 20 filed with <br />the COGCC. Two of the wells, those we have named the Porter #1, western most <br />location, and the Rippy #1, just east of the Porter, were drilled horizontally and into the <br />coal seem at the bottom of the mined out area, where the 3`d well (Rippy #2) was drilled <br />angling immediately downward and into the Wheeler coal, at greater depth and below the <br />water contact. <br />The Porter #1 and Rippy #1, each had 6 inch "collar" casing, 70' and 87' <br />respectively, cemented in place to which a blow-out preventer was attached during <br />drilling. At the face of the drill holes and surface wall, structural foam was injected to <br />provide a seal between the collar pipe and washout area of the unconsolidated surface <br />rock. Both holes penetrated approximately 670' of horizontal hole which completely <br />collapsed following drilling. The 6" collar pipes remain in place, were stuffed with <br />cement, sacks and other materials and then had welded API steel-caps place at the <br />exterior ends. The 3`d well, Rippy #2, has approximately 100' of 4" collar pipe cemented. <br />It will likewise be capped and that drill hole did not penetrate any of the old mine <br />workings and is drilled below the water table where it intersected the coal. The locations <br />will be back-filled when our testing program is completed. <br />Further responding to your concern that oxygen could leak through any of these <br />holes, we are confident that no leaks to the old mine workings, now or in future, would <br />come from the operations Vessels conducted in this area. <br />e truly yo /? <br />as A. Pool, Operations Manager