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- ?OMPANYL.L.C. <br />A Subsidiary of Arch Western Resources, LLC <br />West Elk Mine <br />P0Box591 <br />5174 Highway 133 <br />Somerset, CO 81434 <br />(970) 929-5015 <br />Fax (970) 929-5595 <br />March 14, 2006 <br />Mr. Desty Dyer <br />Bureau of Land Management <br />2505 South Townsend <br />Montrose, CO 81401 <br />RECEIVED <br />MAR 20, 2006 <br />RE: COC 67231 <br />Dry Fork Exploration Drilling <br />Dear Desty, <br />Division of Minerals & Geology <br />The evaluation of the 2005 drilling data has resulted in a need to drill one additional hole on the <br />Dry Fork Coal Exploration License. The purpose of the drill hole would be to test the EO Coal Bench <br />for thickness and quality. The drill hole would be drilled to the Rollins Sandstone allowing for <br />additional B Seam thickness data collection. <br />The hole, currently identified as EEE on the map, is located in SE1/4 Sec. 2, T14S, R89W, 6th <br />PM at the intersection of Forest Road FS711 and the Deep Creek. The map depicts the proposed hole <br />location relative to existing holes and topography. Positioning the hole in the field can utilize the pre- <br />disturbed area at the Deep Creek Crossing and the primitive camp site above the road. I do not <br />anticipate the need for timber removal or major earth work to accommodate this site. Minor site <br />preparation and efficient positioning of the equipment should provide adequate space for the <br />equipment. <br />MCC is also planning to drill the permitted site SST-1 in 2006. The site is on MCC's private <br />surface accessed via the USFS classified road at Deer Creek. The drilling of both holes would occur <br />sequentially as drill equipment and manpower is available, preferably in July. <br />Please contact me after you have a chance to review the location and permit requirements. I <br />believe that the minimal disturbance proposed will facilitate an administrative approval. <br />Sincerely, <br />Wendell A. Koontz <br />Sr. Mine Geologist <br />Ark Land Company <br />West Elk Mine <br />cc: Ryan Taylor USFS <br />Jim Burnell CDMG