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Colowyo Coal Company <br />2011 Annual Reclamation and Hydrology Report <br />RULE REQUIREMENT <br />None Apply <br />SECTION 12 - DRILL HOLE LOCATIONS <br />GENERAL DISCUSSION <br />Starting in 2007 and moving forward, all drill holes drilled inside the pit will be <br />reported in the annual reclamation report. All drill holes will start at the surface and <br />penetrate no deeper than the bottom of the planned pit floor. Typically, two separate <br />drill holes will be drilled on each drill site, the first being a pilot hole and the second <br />being the core hole. All drill holes will be surveyed for x, y, z coordinates after being <br />drilled. All drill holes will not be backfilled with bentonite plug gel /chips and will be <br />left open to depth since they will soon be mined through during the course of normal <br />pit mining activities. If for some unforeseen reason the pit does not mine through any <br />given drill hole, that drill hole will be relocated and sealed in accordance with the <br />rules. In -pit drill holes will not be bonded as they will be mined through during the <br />normal mining sequence. A rock will be placed on the top of all open drill holes to <br />prevent tripping/falling hazard for persons or animals. <br />No exploratory drill holes were drilled in 2011, therefore no Exhibit 12 is included in <br />this annual report. <br />Page 12 -1 <br />