2012-04-02_PERMIT FILE - X201222311 (2)

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Coal exploration is needed to provide data on all available reserves for possible development of a new underground coal mine in Delta County, by Oxbow Mining Oak Mesa, LLC. The proposed Oak Mesa area is located in Delta County to the west of the Orchard Valley Mine. This exploration drilling will be used to confirm the quality and quantity characteristics of this coal resource. The proposed exploration license covers upland areas located between the West Roatcap Creek and Leroux Creek drainages and north of the community of Hotchkiss. The area lies generally west of the Orchard Valley coal lease tracts (C -53356 and C37210). The geology and coal character are anticipated to be similar to the Orchard Valley coal lease tract. The surface lands of this proposed exploration area consist of a combination of privately owned and BLM managed sections, however, a majority of the exploration drill pads will occur solely on private surface, with only one drillhole expected to occur on BLM surface. The elevation in the exploration area ranges from approximately 7,350 ft. above mean sea level (amsl) in the drainages of the exploration license area to 9,100 ft. (amsl) in the north portion of the area. Forty-three (43) drill sites are proposed with elevations ranging from approximately 7,590 to 8,974 feet (amsl). This area is semi -arid with annual precipitation of approximately 17 inches, mostly as snow. Both Leroux Creek and West Roatcap Creek are perennial drainages with minor flows occurring all year long. The flow volumes vary in response to spring snowmelt and runoff from major rainfall events. Flow volumes will also vary depending upon the amount of runoff that is diverted into irrigation channels that run through this area and provide water to local orchards and farm land. There are two other drainages, the Dever, and Jay Creek drainages that are in the area of the proposed exploration drilling activities. These drainages have intermittent flows that varying depending upon runoff available and varying amounts captured by local irrigation canals. Soils vary in thickness from 0" on steep side slopes and rocky outcrops to possibly 2' — 3' in drainage bottoms. Due to the general steepness of the terrain, the drainage bottoms often contain a high percentage of rocky materials deposited by erosion and/or other mass wasting processes. Vegetation cover types are projected to be consistent with the terrain and semi -arid climate found on the upland area. Seven upland vegetation types are found in this area ranging from Gambel Oak — Mountain Shrub to Pinyon — Juniper and minor amounts of Meadow, cottonwood, Riparian and Aspen communities. A wide range of wildlife species inhabit the general area, although use and habitat values maybe limited by the semi -arid climate and terrain and vegetative cover types. The area has been evaluated for applicable T &E species and no Threatened, Endangered or Candidate species were found in this area. BLM sensitive species will be evaluated per license requirements. 5. Describe Exploration Activities; Rule 2.02.2(2)(g): 5.0 DESCRIPTION OF DRILLING AND RELATED ACTIVITIES (Rule 2.02.2(2)(8)) Exploration Access — The drill sites will be accessed from existing two track ranch roads and light -use roads that extend onto the upland slopes and drainage basins. The existing road alignments will not require modification. Required road maintenance will generally include grading the road to provide a smooth operating surface, clean -out and repair of any existing drainage structures and application of temporary drainage control measures (berms, straw bales, silt fences, gravel surfacing, etc.) as necessary. As shown on the attached map and the table below, new, temporary road segments range from adjacent to a road to 2,957' in length for a total estimated combined distance of 41,660' (7.89 miles). Total estimated disturbance is 21.5 acres for forty -three (43) drill pads and 11.36 acres for roads for a total disturbance of 32.86 acres. New road construction will be kept to a minimum and will follow applicable BLM specifications. Following the conclusion of drilling activities, the temporary roads