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1 <br />2010 Hole Plugging <br />All plugging activities were overseen by Blue Mountain Energy, Inc. Engineering Dept. staff. <br />Return Shaft #3 (RS -3) <br />On November 1, 2009 RS -3 was permanently sealed by backfilling from the bottom to the surface with <br />soil previously stockpiled on site. Cook's Trucking provided the equipment and operators to perform <br />this task. The portion of the steel liner projecting above the surface was then cut flush with the <br />concrete pad and a 6+ inch concrete plug was poured on the top. <br />In early 2010 an apparent bridge in the filling gave way allowing significant settling to occur. The shaft <br />was again backfilled to within 12 feet of the surface. A temporary concrete slab was placed over the <br />hole to restrict access. In July a 12 foot permanent plug of concrete was poured in the top of the shaft. <br />Cook's Trucking provided the backfilling operation. White River Aggregate provided the concrete on July <br />15, 2010. <br />Return Shaft #4 (RS -4) <br />In the spring of 2010 RS -4 was backfilled with 50+ feet of non - combustible fill and capped with a 6 foot <br />concrete plug. We later returned and backfilled the shaft to within 8 feet of the ground surface. The <br />surface casing was cut even with ground level and the remainder of the shaft backfilled with concrete <br />forming a permanent plug on July 15, 2010. <br />LWB10 -1, LWB10 -2 <br />On July 15, 2010 these degas boreholes were backfilled their full depth with concrete from White River <br />Aggregate. <br />Monitoring Well 32 -7M <br />In August, monitoring well 32 -7M was backfilled with six 80 lb. bags of mortar mix mixed with six 50 lb. <br />bags of sand. 20 gallons of water were used to mix the material before pouring down the hole. <br />Fourteen 80 lb. bags of concrete mix mixed with 30 gallons of water were placed between the surface <br />casing and the 32 -7M well pipe. Well 32 -7U, which shares the hole with 32 -7M, was temporarily capped <br />to allow this backfilling. Cementing was stopped before the top of 32 -7U was reached. <br />Monitoring Well 32 -71L <br />Monitoring Well 32 -7L had been initially plugged with two 50 lb. bags of Baroid 'Holeplug' on February <br />1, 2001 prior to mining through the well casing. The top of the plug was tagged at 385'. The top of the <br />coal seam was at approximately 400'. Since this well no longer serves a useful purpose and poses a <br />potential leak to the sealed mine, plugging was completed in August 2010 by placing ten bags of mortar <br />mix mixed with ten bags of sand mixed with thirty gallons of water. The surface annulus between the 2" <br />