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calculated by PSCM are summarized on Table 3, 2011 Exploration Reclamation Cost <br />Estimate. Upon approval of the NOI, PSCM will file a corporate surety with the Land <br />Mined Reclamation Board to ensure that the reclamation obligations are fulfilled. <br />The following sections describe the specific proposed reclamation practices to be used to <br />return areas disturbed by the exploration activities to a stable condition and productive use. <br />Drill Hole or Well Plugging - Sealing and Abandonment: All drillholes will be plugged, <br />sealed, and abandoned unless they are converted into a groundwater monitor well. Deeper <br />drillholes will be plugged with a minimum of 6 cubic yards (about 750 feet) of cement slurry <br />- this is the off-road transport capacity of a cement truck. Shallower drillholes will be <br />plugged with between 3 and 5 cubic yards of cement slurry (as appropriate). The cement <br />slurry will be tremied into the drillhole from the bottom of the hole, up through the target <br />units. This will effectively plug and seal all coal beds and potential groundwater aquifers to <br />prevent vertical groundwater migration and cross-contamination of aquifers. <br />Any remaining open drillhole interval will be filled with other suitable plugging material <br />(plug gel or vendor-specific grout compounds) and/or drill cuttings to within 5 feet of the <br />ground surface and the drillhole will be sealed with a surface plug consisting of at least 5 feet <br />of cement. Surface casing, if used to keep the drillhole open, will be cut-off at or below <br />grade. Reclaimed drillhole locations will be marked with either a steel fence post or a metal <br />survey cap at or below ground level (used where agricultural cropping occurs). All drillhole <br />locations will be accurately surveyed, and distinctly numbered, allowing for future <br />identification. Abandonment reports will be prepared and filed, as required by applicable <br />regulations. When no longer needed, as noted above, the groundwater monitor wells will be <br />plugged, sealed, and abandoned in essentially the same manner, with the stipulation that <br />cement slurry will be used for plugging the entire well interval. <br />Exploration Site Reclamation: Following completion of exploration activities (drilling, <br />sampling, and geophysical logging) for each exploration site, any drillholes not converted to <br />monitoring wells will be plugged, sealed and abandoned, as previously described, and <br />exploration disturbance will be reclaimed. In accordance with Rules 2.02.2(2)(0 and <br />4.21.4(4), excavations, artificial flat areas, and embankments created during exploration will <br />be returned to their original contour promptly after such features are no longer needed for <br />coal exploration. Site reclamation will follow completion of exploration activities for each <br />site as soon as reasonably practical, recognizing however, that certain reclamation activities <br />may be coordinated to take advantage of equipment and personnel availability. Seeding of <br />reclaimed exploration sites will occur during the first favorable seeding period (typically late <br />fall [preferred], or early spring) following completion of site reclamation. <br />The following steps summarize the general sequence for reclamation of exploration <br />disturbance areas: <br />• On completion of exploration activities at a given site, all trash, debris, and exploration <br />equipment and supplies will be removed from the site. <br />• Drilling fluids in mud pits will be allowed to dry, or they may be pumped from the mud <br />pit for off-site disposal. Mud pits or excavated trenches will be backfilled with the <br />excavated material and compacted to minimize any settling. Any excess drill cuttings <br />PSCM 2 011 N01 <br />18 <br />April 2010 <br />