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This report is filed in accordance with Rule 2.02.6(3)(a) of the Regulations of the Colorado Mined <br />Land Reclamation Board for Coal Mining, adopted in accordance with the Colorado Surface Coal <br />Mining Act, C.R.S. 34 -33 -101 et seq. The purpose of this report is to update the Division on <br />exploration and reclamation activities that have occurred in the past 180 days of active prospecting <br />under permit X- 2010 - 232 -00. The report also indicates any changes in operations from what was <br />stated in the original Notice of Intent sent to the Division. <br />1. Map showing locations of drill holes. <br />A map is attached to this report showing the actual location of all holes that have been drilled <br />under the exploration permit X -2010- 232 -00. Access to the drill locations was via active oil and <br />gas well access roads; therefore no road construction was required for the exploration program. <br />The drill rigs and test equipment are currently idle and located off site. <br />2. Description of what and where reclamation activities have occurred. <br />As of the conclusion of the exploration permit, all drill sites have been reclaimed. Drill holes not <br />completed for monitoring have been plugged. All sites were graded, topsoiled and seeded. <br />3. Modifications to the original plan. No modifications were made to the reclamation plan or <br />unexpected problems encountered with the exception of changing monitoring hole designations <br />and adjusting the locations to limit disturbance. The original drill hole locations were modified <br />to accommodate the request by the Division of Wildlife that no roads or monitoring wells be <br />constructed at this time within the Bosque del Oso boundary. Table 1 shows the progressive <br />modifications in location from the original application in May 2010. In summary, drill hole NE- <br />13-10 was added in August, 2010. At that time the monitoring well locations were changed from <br />two proposed wells NE -02 -10 and NE -04 -10 to one well, NE- O1 -10. Four additional drill holes <br />were added to the plan in October 2010. One hole was converted to a monitoring well, NE -06- <br />10. <br />NECC 180 day report X -2010- 232 -00 <br />8/29/2011 1 <br />