2010-12-17_REVISION - C1981019 (130)

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Coal Quality Data Review for Colowyo Coal Company • data showed that the Grace equilibrium moisture values average approximately 1.5 higher than the Utah equilibrium moisture values, see Figure 6. The 2004 Collom exploration program will be collecting equilibrium moisture as part of the composite analysis suite. These data should provide the means for comparing the equilibrium moisture data across the Collom area. Thus determining if equilibrium moisture is better suited for predicting product moisture than the total moisture. HGC believes that equilibrium moisture values are important for analyzing the product moisture of the deposit. Because equilibrium moisture values are performed under strict ASTM guidelines, the effects of field procedures by the geologists are minimized. Conversely, total moisture values can be directly influenced by the field geology, the weather during sampling, and the • length of time elapsed between coring and analysis. Thus, HGC believes that the equilibrium moisture values will facilitate better understanding of future product moisture within the Collom reserve area. 3.3 MAF Btu and Depth HGC reviewed MAF Btu /Ib versus Depth of the Collom Area drill holes and the Mine Area drill holes. Within the Collom area, no quality data appeared to be affected as a result of being close to the surface, see Figure 7. HGC has observed that obviously oxidized or burned coal quality values exist in the drill hole files, but not in the drill hole database. These data are generally not modeled because of adverse affects on modeled surfaces excessively over large areas. These data not being in the drill hole data does not cause problems for modeling. However, for the sake of completeness HGC recommends that these data be added to the Drill Hole Data during the course of the 2004 • exploration project. July 2004 Page 13 of 16