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<br />Notice of Intent to Explore <br />Lorencito Bulk Coal Sample <br />MGP Mineral Enterprises LLLP <br />Tune 17.2010 <br />3) None required. <br />4) Approximately 250 feet. <br />5) No significant aquifers are known to exist above the Primero coal seam <br />in the area to be explored. <br />6) The drill hole will be filled with drill cuttings to approximately 10 feet <br />from the surface. The hole will be filled with concrete to within two <br />feet of the surface with the remaining two feet filled with dirt from the <br />surrounding area. <br />7) None of the holes will be developed as water wells. <br />6. To determine if the drilling would impact any endangered or threatened species, the <br />permit application file (C96084) for the Lorencito Canyon Mine by Lorencito Coal <br />Company was reviewed to determine the potential impact. According to the permit <br />documents, "the U.S. Fish and Wildlife Service has identified eleven threatened, <br />endangered, and species of special concern wildlife that occur of potentially occur <br />within the Property. These species include the black-footed ferret, bald eagle, <br />peregrine falcon, Mexican spotted owl, swift fox, Texas horned lizard, mountain <br />plover, southwestern willow flycatcher, Baird's sparrow, ferruginous hawk, burrowing <br />owl, Arkansas darter, and speckled chub. However, the potential for these species to <br />occur within the property is low. This conclusion is based on the fact that suitable <br />habitat for these species does not occur within the property. Only one threatened, <br />endangered, or federal special concern species was observed during field surveys. A <br />bald eagle was observed flying over the property during the February field surveys." <br />In addition, the list of threatened and endangered species from the Colorado Division <br />of Wildlife website was compared to the list of species observed for the Lorencito <br />Canyon Mine permit application to determine if any other threatened or endangered <br />species were observed in the area and no additional threatened or endangered species <br />were observed in the area. The Lorencito Canyon Mine is approximately three miles <br />north of the proposed location for the drill holes and the habitat is very similar to the <br />land around the Lorencito Canyon Mine. Also, the activities of the exploration drilling <br />will be minimal compared to the ongoing activities of Pioneer Natural Resources <br />Page 2