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Twentymile Coal Company <br />18 LT Utility Borehole — Drilling <br />October 27, 2010 <br />GENERAL SCOPE OF WORK <br />The project scope of work to be completed by the Contractor shall include a 60' long, grouted, 16" diameter conductor casing. The <br />utility borehole shall be drilled to a nominal 14 -3/4" inch diameter to a depth of approximately 1390 feet below the surface. Two steel <br />pipes are to be placed inside the nominal 14 -3/4" drilled hole from the surface to the mine opening. One pipe will be a schedule 80, <br />welded joint, 8 -5/8" diameter pipe. The other pipe will be a schedule 80, welded joint, 4 -1/2" diameter pipe. TCC shall provide the <br />welded joint pipes. <br />The work site should be available on or about 11 /15 /10for drilling. All permits should be secured by this date. <br />General Provisions <br />1. Technical questions should be addressed to Michael Berdine at (970)- 870 -2782. <br />2. Contractor to provide a detailed, itemized bid on all aspects of this scope of work the Contractor intends to perform. TCC <br />prefers a complete packaged bid from each Contractor. <br />3. Contractor to provide time line for completion of work outlined in this document. <br />4. The work site should be available on or about 11 /15 /10for drilling. <br />5. The winning bidder will receive a "not to exceed" amount Purchase Order. <br />6. Contractor must maintain all equipment and materials on the provided pad, including drill cuttings. Drill cuttings can be <br />pumped to existing cuttings pit via a pipe line to be supplied by the drilling contractor. <br />18 LT Utility Borehole <br />The 18 LT utility borehole is to be drilled approximately 1,390 feet in depth. The Contractor is to complete this borehole within a <br />maximum horizontal deviation of 2.0% of the borehole length. It should be noted that the strata in this area dips at approximately 5% <br />O the north. The surface drilling location has been selected to account for the anticipated up -dip walking of the drill bit to allow for <br />aximum opportunity to intersect the mine workings. Two existing 18 LT boreholes were drilled in 2009 to a depth of approximately <br />1,390 feet and deviated approximately 25' to the north. <br />The borehole will be intersecting open and examinable mine workings. <br />The Contractor is to use an existing collections pit to collect the drill cuttings. TCC has prepared the pad for the drilling equipment. <br />The Contractor may not extend or modify the pad without TCC's consent. <br />Contractor is to install and grout a 60' long, 16" diameter, surface conductor casing or a size as deemed necessary for Contractor's <br />equipment and to meet the borehole accuracy requirements. The Contractor shall then drill a nominal 14 -3/4 inch borehole into the <br />surveyed mine roof (approximately 1,390 feet total length). Two steel, welded pipes are to be placed inside the nominal 14 -3/4" <br />drilled hole from the surface to the mine opening. One pipe will be a schedule 80, welded joint, 8 -5/8" diameter pipe. The other pipe <br />will be a schedule 80, welded joint, 4 -1/2" diameter pipe. Both pipes are to be fully grouted to within 3 feet from the surface. The <br />Contractor shall provide a minimum of two grout basket on each of the two pipes, for facilitating grouting off the pipes, one placed <br />10' above the mine roof on each pipe and one placed 20' above the mine roof on each pipe. The 14 -3/4 inch drilled borehole should <br />allow sufficient room to perform tremmie -pipe grouting from the bottom, up. Each pipe shall have a coupler and plug <br />welded /installed on the bottom of the pipe string and shall be filled with water prior to grouting the annulus. Contractor shall air lift <br />out the water from within each casing pipe after the concrete has set around the annulus. <br />Attachments: <br />1. Exhibit A Location Map <br />2. Exhibit B Typical Lithology <br />• <br />18 Left Utility BH Sscope of Work 102710.doc 10/27/2010 <br />Page 2 <br />