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Coal Quality Data Review for Colowyo Coal Company <br />• <br />data is higher than the overall moistures of the Collom and Mine Area DH <br />data. <br />Table 4 illustrates the differences of total moisture between the "Last Pass" <br />product moisture, the Mine Area DH moisture and the Collom Area moisture. <br />Table 4 shows that the product moisture is generally greater than the <br />moisture values of the Mine Area Drill Hole Data and the Collom Area drill <br />hole data. HGC spoke with Mr. Mike Robinson about the factors applied to <br />modeled coal quality to determine as- shipped quality. He stated that 1.0 <br />(percent) was added to the modeled moisture values. If 1% is added to the <br />Mine Area and Collom Area drill hole moistures, the differences from the <br />product moisture diminish significantly. <br />Table 4 and Figure 5 shows that the moisture values in the Collom Area are <br />between 0.06% and 1.87% lower than the Mine Area Drill hole values. This <br />• illustrates that the moisture values in the Mine Area drill hole data are not <br />vastly different than the moisture values in the Collom Area drill hole data. <br />Therefore HGC believes that the product moisture of the Collom Area will in <br />turn reflect the product moisture of the current operation. <br />Table 4 also shows that the total moisture drops from the upper seams to the <br />lower seams in the coal sequence. <br />HGC created a series of charts illustrating normal distribution of the Collom <br />Area and Mine Area drill holes by seam. The charts are located in the <br />Appendix. These charts graphically show the comparisons presented in Table <br />4. <br />Equilibrium moisture data exists for the Utah, Consol, and Grace data sets. <br />None of the KEC data contains equilibrium moisture data. Therefore, <br />July 2004 <br />Page 12 of 16 <br />extensive review of equilibrium <br />moisture is <br />limited. HGC compared normal <br />• <br />distribution curves of the Utah <br />and Grace <br />equilibrium moisture data. The <br />July 2004 <br />Page 12 of 16 <br />