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The BC series proposed drill holes are Brook Canon coal seam exploration. Exploration is <br />proposed in Sections 22 and 23 with the two (2) most northeastern holes within the existing <br />approved permit boundary. Depth to coal is anticipated between 100 and 200 feet. <br />The NF series proposed drill holes will confirm the Ocean Wave coal seam already well <br />documented. All of the proposed locations are within the approved permit application boundary. <br />Depth to coal will vary from 320 feet to 800 feet. Based on the core from NF -04, one of the NF- <br />05 holes will be drilled. <br />Northfield proposes posting bond for the nine (9) holes, those not marked "tentative" in Chart 1. <br />Based on DRMS reclamation cost worksheet estimates for AM -01, the bond estimates were <br />calculated. For the initial nine (9) holes, the bond estimate is $22,251.10. <br />Please note that Mr. Al Weaver submitted the 180 -Day Report and Drill Hole Abandonment <br />Report in March 2008. In the event these reports are satisfactory with respect to the B series of <br />NF wells, please apply that portion of the posted bond to the bond required for the proposed drill <br />holes. <br />Please feel free to contact me with any questions. <br />Respectfully submitted, <br />Angela M. Bellantoni <br />Cc: Bob Scott <br />Scott Leonhart <br />EnViiironnen0II AIILerrnatii\Vres IInc, <br />1107 Main Street, Canon City, CO 81212 <br />www.envalternatives.com • e -mail: eai @bresnan.net <br />Phone: 719- 275 -8951 • Fax: 719- 275 -1715 <br />