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Although not anticipated, all natural acid - forming or toxic materials, encountered during drilling <br />of the formations will be disposed of during the exploration program. All core samples are <br />planned to be removed from the site. Cuttings will be collected for visual descriptions with <br />retention of a small sample. <br />Linc Energy does not expect any significant inflows of groundwater during the drilling process. <br />Some sandstone units and coal seams may contain groundwater. Surface alluvium deposits may <br />also hold appreciable quantities of groundwater especially around the main drainages. Surface <br />casing will be used to isolate these surface encounters should they arise. Shale, claystone, <br />mudstone, siltstone and argillaceous sandstone units will likely lack groundwater. Any <br />significant influxes of groundwater will be recorded and measured and reported to the Division <br />when encountered. If results are positive and coal seams appear thick for potential UCG <br />applications, the exploration hole may be converted into water monitoring well. Installations <br />will be approved and permitted through the Colorado Division of Water Resources. A <br />conceptualized construction well design is attached for Division review. <br />