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3. If the surface is owned by a person other than the person who intends to explore, give a <br />description of the basis upon which the person who will explore claims the right to enter <br />such area for the purpose of conducting exploration and reclamation (attach supporting <br />documents, if applicable): <br />In the area proposed for 2011 exploration program the surface owned by the State of Colorado <br />through the Department of Natural Resources for the use and benefit of the Division of Wildlife <br />(DOW) and private property overlying the NCE mineral ownership. The NCE mineral <br />ownership surface access is provided by the mineral severance deed (Book 575, Pages 362-368, <br />Las Animas County Recorder's Office). Proposed hole locations are indicated on the attached <br />Map: New Elk Mine Working Map - 2011 Exploration. The DOW lease was filed in Las <br />Animas County Book 1075 pages 1935-1969. The DOW requires an approved Notice of Intent <br />filed with the state with appropriate restoration bond. <br />4. Attach a description of the land to be affected. For example: The condition of the topsoil, <br />the general hydrology, type of vegetation and topography, Rule 2.02.2(2)(c). <br />The lease parcels are within an area with substantial natural gas production and the associated <br />disturbance from well pads, pipelines and roads. There are numerous activities in the area <br />including roads, gas development, grazing and a rural ranchette development. The elevation of <br />the exploration area ranges from 7200 to 8600 ft above sea level with an annual precipitation of <br />16-18 inches. The topographic expression consists primarily of steeply sloping ridges and <br />narrow canyons. Grazing is limited in the canyon bottoms predominantly due to the sparse <br />vegetation on the slopes. The area is primarily pinyon-pine and juniper woodlands with <br />interspersed grassland and mountain shrub land. Mountain shrubs such as currant and mountain <br />mahogany are abundant on the south facing slopes. Topsoil depth varies by location. The soils <br />are typically channery loam over sandstone at a depth of 13 to 20 inches. By name they are <br />identified as Table Mountain Loam, Fuera Clay Loam or Priet loam. They are good growth <br />mediums for vegetation if sufficient water is present. <br />Streams within the proposed exploration area are predominantly ephemeral, with stream flow in <br />response to precipitation events. In some cases, stream flow is augmented by discharge from gas <br />well activity year round. Ground water is present in the coal seams. Sandstones in the area of <br />focus are typically lenticular and exhibit low porosity and permeability which precludes them <br />from being productive aquifers. Based on previous drilling programs the occurrence of <br />groundwater will vary throughout the exploration area. <br />NECC 2011 NOI Attachment 2/7/2011