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ENVIRONMENTAL ANALYSIS REPORT <br />PSCM proposes to initiate supplemental coal exploration in 2012 to further delineate and define <br />the coal characteristics for future mine planning. A total of 6 holes will be drilled within the <br />PSCM permit boundary. The proposed exploration activities will result in minimal impact to the <br />environmental resources of the area. An overview of the project area showing the surface and <br />coal ownership and the drill sites is provided on Map 1, 2012 Exploration Program - Surface <br />Ownership and Map 2, 2012 Exploration Program — Coal Ownership. <br />The proposed activities include drilling, sampling, logging, and reclamation of exploration holes. <br />A significant portion of following information regarding environmental resources was collected in <br />conjunction with the permitting of the previous exploration programs and the Yoast Mine and has <br />been summarized for this 2012 application. <br />HAZARDSREPORT <br />Geologic Hazards: There are no known geologic hazards at any of the proposed drill -pad sites. <br />The general topography of the area is relatively gentle north - northeast facing, moderately sloping, <br />side slope benches and ridges. There are steep south - southwest facing escarpments on the east <br />and south end of the project area. However, none of the exploration drilling will occur on or <br />adjacent to the steep escarpments. Drill pad site selection was partly based to take advantage of <br />flat terrain. <br />Hydrologic Hazards: There are no known hydrologic hazards at any of the proposed drill -pad <br />sites. No sites are located within a water course flood plain zone and all pads will be set back at <br />least 50 -feet from any stream or dry wash. The exploration activities will involve drilling through <br />sandstone units, which may function as aquifers in the area (dependent on recharge, <br />transmissivity, and lateral continuity). Upon completion of the drilling activities, the holes will be <br />grouted from bottom to top to eliminate the potential for any cross - contamination concerns <br />associated with penetrating multiple sandstone units. <br />Vegetation: Previously completed vegetation investigations for the area (199011992 Vegetation <br />Baseline Report, Yoast Mine, ESCO Associates, 1993) did not identify any currently listed <br />threatened or endangered plant species as occurring within the project area. The only rare plant <br />species with federal status that potentially could occur in the project area is the Ute Lady's <br />Tresses orchid (Spiranthes diluvialis). The only suitable habitat for this species mapped in Routt <br />County is in the vicinity of the Yampa River along the floodplain, which is several miles north <br />and west of the project area. Several plants regarded as rare by the Colorado Natural Heritage <br />Program (CNHP, http: / /www.cnhp.colostate.edu; accessed 4/10/08) have been located in the <br />Little Snake Resource Area, though mostly at lower elevations and further west of the Sage Creek <br />area. The only CNHP rare plant species with some potential for occurrence in the Sage Creek <br />area are Harrington beardtongue (Penstemon harringtonii) and Autumn willow (Salix serissima). <br />Habitat for Harrington beardtongue typically occurs at elevations between 6,800 and 9,200 feet, <br />and while much of the area is within this elevation range no occurrences of Harrington <br />beardtongue have been identified in this area. Habitat for Autumn willow is defined as occurring <br />Peabody Sage Creek Project 2 April 2012 <br />