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• 2009 DRY FORK AREA EXPLORATION PLAN <br />3482.1(A)(3)(iii) Narrative Description of Proposed Exploration Area <br />The proposed exploration area is located approximately 10 miles east of Paonia, Colorado and 6 <br />miles southeast of the town of Somerset, Colorado. The area lies within a portion of T.14S. <br />R.90W. 6th Prime Meridian, Gunnison County, Colorado. The proposed exploration area is <br />located south and east of the existing West Elk Mine. Locations of the 19 sites are shown in <br />Table 1. The area for fourteen holes is within existing coal leases held by Mountain Coal <br />Company (C -1362) and Ark Land Company (COC- 67232) as shown on Figure 1B. Thirteen of <br />the 14 drill sites on USFS lands have been previously analyzed and approved as part of MCC's E <br />Seam Methane Drainage Well Project and are proposed to be converted to MDW's upon <br />completion of exploration activities. The USFS Record of Decision for the E Seam MDW <br />Project, dated 11 -18 -2007, is included as Attachment 2. The 14th site has been previously used <br />as an exploration drill site for hole SOM -66 drilled in August 1974. The site is to be re- drilled <br />due to suspect thickness and quality data. <br />Surface Topography <br />The elevation of the proposed exploration area ranges from 7400 ft. in the drainage of Dry Fork <br />of Minnesota Creek and increases southeastward to 8400 ft. on Lions Mesa. The terrain is <br />comprised of moderate slopes and benches within the Wasatch and Mesa Verde Formations and <br />the alluvial slopes derived from the Dry Fork drainages. Dry Fork of Minnesota Creek drains <br />• west and south into Minnesota Creek. Minnesota Creek in turn joins the North Fork of the <br />Gunnison River at the town of Paonia. <br />Primary access to the sites will be via USFS Road 711, historically known as Hammond Trail. <br />Road 711 follows the course of the Dry Fork before crossing Deep Creek and ascending the east <br />flank of Coal Creek Mesa. Road 711 -2C will be upgraded to access three of the four sites, 2009 - <br />A, 2009 -B, and 2009 -D. The fourth site, 2009 -C, is adjacent to Road 711 slightly east of the <br />other three holes. <br />MCC's existing Special Use Road Permit is included as 'Attachment 3. <br />Geology <br />The proposed Dry Fork exploration application area lies along the southeastern edge of the <br />Piceance Basin within the Somerset Coal Field, occurring on the Minnesota Pass U.S.G.S. 7 1/2 <br />minute quadrangle map. Refer to Figure 1 B. <br />Initial geological work in this area was done by W. T. Lee (1912) who reported his findings in <br />"Coal Fields of Grand Mesa and the West Elk Mountains, Colorado" (USGS Bulletin 510). Later <br />in 1948, Vard H. Johnson published a USGS map of the Paonia Coal Field incorporating drill <br />hole data generated through a USGS and U.S. Bureau of Mines drilling program. The following <br />year Johnson further described the geology of the Minnesota Creek area in USBM Technical <br />Paper 721. More recently, in 1989, C.R. Dunrud compiled a coal resources map of the region <br />• (USGS Map C -115). In progress from the Colorado Geological Survey is report on the coal <br />resources of the Somerset Quadrangle (CGS OFR 98 -6). <br />(Amended 02/04/10) <br />2 <br />