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• <br />• <br />Notice of Intent to Explore <br />Item 3: The surface is owned by Garvey and Company, a Colorado General Partnership. <br />Western Fuels- Colorado, LLC has entered into a lease agreement with this entity to conduct <br />surface mining and all related ancillary activities. See attached Attachment 4 (Garvey Lease <br />Agreement) for details. <br />Item 4: The proposed location for the well is in the southern portion of the New Horizon North <br />Mine which was previously mined in the 1980's by Peabody Coal Company. This area has been <br />reclaimed but has not been released from bond. The area is classified as topsoiled reclamation <br />by the most recent vegetation and soils surveys. Topography is dipping gently at approximately <br />2% to the southwest. The reclaimed backfill is approximately 50 in depth and extends to what <br />was previously the bottom of the Lower Dakota (LDx) coal seam. The well will be drilled <br />through the backfill, the Lower and Brushy Basin members of the Dakota Formation, and into <br />the top of the Morrison Formation. The target aquifer is located at the top of the Morrison <br />formation and is a commonly used water source in the Nucla area. This is a confined aquifer and <br />is expected to provide approximately 10 gpm. <br />Item 5: The water well is expected to be drilled with just one hole but if this first hole does not <br />produce the required quantity of water, there may be a need to either drill deeper than expected <br />or relocate the drilling within the same general area. Drilling of the well will begin with a 12 1/4" <br />bore hole through the backfill and at least 20 feet into the lower member of the Dakota <br />411 formation. This portion of the well will be drilled using drilling mud and then be cased with an <br />8 5/8" steel casing. The outside of the casing will be pressure grouted using cement or a <br />cement/bentonite mixture. Once the grout has cured, a 7 7/8" borehole will be drilled through <br />the surface casing down approximately an additional 140 feet into the aquifer at the top of the <br />Morrison Formation. The zone from the top of the aquifer to the surface casing will then be <br />cased with 4" schedule 40 PVC pipe. The annulus of this casing will be grouted above a soft <br />formation packer located just above the aquifer. The zone within the aquifer (approximately 40') <br />will be screened with a 4" mill slotted PVC screen with the annulus of the screen left open. The <br />total depth is expected to be approximately 210 feet. <br />Attachment 1 shows the location and topography of the proposed drilling location. Attachment 2 <br />shows the details for the well. <br />The following is the details for each item specifically listed as required information: <br />5.b.1. None <br />5.b.2. None <br />5.b.3. The seed will be a dryland pasture mix with the following: <br />20% Lincoln Smooth Brome <br />► Page 1 <br />