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No hydrologic consequences of mining are apparent. All coal mined to date, <br />being mined and to be mined within the permit area lies above the potentiometric <br />surface of Hay Gulch. No water is known to occur in any rock unit above or <br />immediately below the coal seams being mined by National King Coal, LLC within or <br />immediately adjacent to the permit boundaries. <br />Location Coal elev." Potentiometric Sur."" <br /> <br />SW 28, 35, 11 7555' drill hole 7420' <br />SE 29, 35, 11 7600' outcrop 7440' <br />NE 32, 35, 11 7526' drill hole 7360' <br />SE NE 32, 35, 11 7453' drill hole 7320' <br />NW SW 32, 35, 11 7385' drill hole 7220' <br />NE SE 31, 35, 11 7336' drill hole 7210' <br />NW SW 31, 35, 11 7320' outcrop 7220' <br />NE NW 6, 34, 11 7198' drill hole 7150' <br />Drill hole data is from confidential data. Outcrops are from National King Coal <br />data. <br />Potentiometric surface projections are based on structural contours shown on <br />U.S.G.S. Map OM 109 and U.S.G.S. 7 1/a feet Topographic Quadrangle Maps. <br />Aside from the aforementioned "perched" aquifers, all mine workings to date <br />are dry and all coal within the permit area lies above the potentiometric surface of <br />Hay Gulch, it is not expected that there will be any hydrologic consequences of <br />mining. The only monitoring carried out by National King Coal, LLC is in the well <br />within the alluvial valley floor immediately north of the mine known as the "Wiltze <br />Well" and the "Haugen Well" south of the permit boundary. These wells are <br />described below. <br />Well No. 50641, SW SE, Sec. 4, T34N R11W is more than one mile from the <br />permit boundary and draws from the Cretaceous Cliff House Formation of the Mesa <br />Verde Group. T. D. of the well is estimated to be 135 feet above the highest known <br />seam of the Menefee Formation of the Mesa Verde Group. No hydrologic effects are <br />expected. <br />Well No. 77395, NW SW, Sec. 8: T34N R11W is 3500 feet south of the permit <br />boundary of the federal lease modification area added to the permit as Permit <br />Revision PR-05. Well depth is 450 feet and water level is 364 feet. An exploratory <br />core drill hole (A-13; A.T. Massey) 1800 feet to the northeast shows the coal seam <br />elevation to be 7140'. This positions the coal seam a minimum of 36 feet above the <br />water level at Well No. 77395. No hydrologic effects are expected for this new lease <br />acreage. The Probable Hydrologic Consequences document has been updated to <br />reflect changes brought about by PR-05 (See Appendix 4(7)). <br />Well No. 158064: Randy Haugen; SE NE, Sec.12U, T34N R12W, use H, yield 4 <br />gpm, depth 500', water level 180' is about 6800' south of the permit boundary and is <br />National King Coal, LLC King I Mine <br />Section 2.04.7 <br />Page 6 February, 2007 <br />