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Appendix A - DRMS Form 2 Public <br />Lynx-Royal JV LLC Slick Rock LH-2 2009 NOI <br />the surface. The remainder of the hole to the surface will be filled with soil and <br />cuttings. <br />Wet Hole - Non-flowing Aquifer. While not expected to occur, the hole will be <br />backfilled with a thick bentonitic mud with a > 50 second viscosity to a point 50 <br />feet above the static water level. The mud will be pumped to the bottom of the <br />hole through the drill pipe and the pipe will be periodically withdrawn as the mud <br />level rises in the hole. If closure occurs when the drill rig is not available, <br />3/8"bentonite chips will be added to the hole in a manner as to avoid bridging <br />until the bentonite chip backfill column is at least 50 feet above the static water <br />level. The remainder of the hole will be backfilled as per a dry or damp hole. <br />Wet Hole - Flowing Aquifer. While considered highly unlikely, if a flowing <br />aquifer is penetrated, then drilling will pause and the permitting agencies will be <br />consulted for recommended abandonment methods. <br />B) Surface Restoration - To the extent possible, remaining drill cuttings will be placed <br />into the containment pit for burial. The disturbed ground will be graded and an <br />approved seed mixture (See Attachment C) will be broadcast immediately following <br />reclamation <br />Estimated Reclamation Costs <br />A) Estimated Cost of Drill Hole Abandonment. - The estimated cost of backfilling the <br />proposed drill holes is $1.25/ft. <br />B) Estimated Cost of Surface Restoration - Estimated cost of the surface restoration is <br />approximately $400.00 per hole. <br />Costs include all materials, labor, equipment, mob-demob, contractors overhead, profit and State <br />supervision charges. <br />Total reclamation cost is estimated at $5,750. <br />Compliance with Statues and Regulations <br />For exploration, Lynx-Royal JV LLC will use the services of contractors. All Lynx-Royal JV <br />LLC contracts with service companies will contain specific sections requiring compliance with <br />all applicable Federal, State and local statues and regulations. <br />Surface Use and Environmental Stipulations <br />Page 4 of 5