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(15 percent) to 12 degrees (25 percent) to the north northwest. The western sections of the No. 5 Mine are nearing the <br />access [o [he anticline and will continue westward until [he dip precludes safe, economical operation. The westem <br />limb of the anticline exhibits dips of up to 45 degrees (100 percent). <br />No. 6 MINE -GEOLOGY <br />The area in which the No. 6 Mine will be initially developed can generally be described as that portion of the mine <br />property lying to the south and east of State Highway 13. It is within this area that the total stratigraphic interval of <br />interest is thickest indicating the longest still stand of the Cretaceous Seaway in the area and the most uniform <br />sedimentary deposition. <br />Structural Conditions <br />Within this portion of the life of mine area, the beds are lying on a uniformly dipping flank between the Williams Fork <br />Anticline and the Big Bottom Syncline. The beds dip at 8 to 10 degrees to the north-northeast. Within this area there <br />are no known faults. Approximately 3/4 mile to the east of this area there is a suspected north-south oriented normal <br />fault, but our operations are not anticipated to be affected by [his structure. <br />The faults encountered in the Eagle No. 9 Mine may or may not extend to the "E" coal seam. These west-northwest to <br />east-southeast trending normal faults lie along the northern extent of the area of initial development and are not <br />expected [o cause undue operational or environmental problems in the No. 6 Mine. <br />The faults encountered in the 2 West area of the No. 5 Mine will not be encountered in the No. 6 Mine. <br />Stratig_raphy Below the "E" Coal Seam <br />There are several discontinuous coal seams and some minor sandstones in the interval between the Trout Creek <br />Sandstone (Iles formation) and the "E" coal seam. The Trout Creek is considered to be the nearest undertying <br />significant aquifer beneath [he "E" coal seam. In the area of initial development, the interval between the Trout Creek <br />and "E" coal seam ranges from 220 to almost 300 feet. Property wide, the maximum thickness is 310 feet. <br />There is one major coal seam beneath the "E" coal seam. This is the "C" seam. Only a small proportion of our <br />drilling intercepts the "c" coal seam and its geometry and quality are not well understood. During development of the <br />No. 6 Mine, EC will be utilizing an underground core drill to evaluate the "C" coal seam for potential future <br />development. <br />Stratieraphv Above the "E" Coal Seam <br />The E Sandstone <br />Between the "E" and "F" coal seams, there is a locally occurring, well developed sandstone that has been interpreted <br />as a channel-lain unit. It is called the E sandstone and it runs from the north-northeast part of the leasehold to the <br />southern end, apparently diverging near the center. This sandstone may be saturated, but drilling in past years has <br />never shown a significant inflow or change in head. <br />Interval, "E" to "F" Coal Seam <br />The interval between the "E" and "F" coal seams varies widely across the property. Within the area of initial <br />development, the interval ranges From 40 to 100 feet. With the exception of the E Sandstone, most of the interval can <br />be classified as very fine-grained being largely shales and siltstones. <br />Permit Revision 04-34 2.04-8 Revised 7/2/04 <br />