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Section - 2.05.3 <br />P. Elk Creek Generator and Thermal Oxidation Facility — Utilizing the methane from the above <br />noted underground network of mine methane collection pipe and the exhauster facility, North Fork <br />Energy, LCC (NFELLC) has located (2012) and operates an approximate '/z acre facility NE of the <br />Elk Creek mine ventilation fan. A Colorado Oil and Gas Conservation Commission (COGCC) <br />permit for the dual use borehole has also been obtained. The facility consists of multiple methane <br />fueled electric generator sets capable of utilizing the mine methane to produce electricity to be fed <br />back onto the electric supply grid via a connection to the primary side of the Delta- Montrose Electric <br />Association (DMEA) power line located at the nearby Elk Creek Mine facility substation. As Oxbow <br />is obligated to obtain all of it's electric power needs from DMEA, the amount of generated power <br />will be in accordance with the demands of the purchase power contracts. The facility is located on <br />OMLLC private surface. The methane gas resource obtained from the mine in -seam drainage system <br />is a combination of limited fee and predominately Federal gas resources. The lease for the Federal gas <br />resource is held by OMLLC sister company Gunnison Energy Corporation (GEC). OMLLC and <br />Vessels Coal Gas jointly own the fee gas. All three companies jointly own NFELLC. <br />Oxbow will "T" off of the current vertical vent stack with control apparatus leading to the Methane <br />Utilization facility. CDRMS jurisdiction will end at this connection. A surface pipeline connected to <br />the T on the vertical stack of the exhauster facility will cross Elk Creek and connect with the <br />NFELLC facility. The system will contain control system redundancies where the methane not used <br />for the methane utilization facility can always be vented to maintain the safety of the mine. The <br />facility will also contain a thermal oxidizer capable of oxidizing or "flaring" the mine methane to the <br />atmosphere. The status of this facility is intended to be separate from the Elk Creek Mine facility. <br />OMLLC intends for the facility to remain in place after the Elk Creek Mine is sealed and reclaimed. <br />Extended testing of the methane resource will be necessary to determine the potential longevity of <br />the facility. If the facility is to remain after mining and reclamation activities are concluded, the Elk <br />Creek Mine reclamation plan will be modified as necessary to accommodate the continued use of the <br />NFELLC facility. The present reclamation plan does, however, provide for an access road via the <br />currently approved post mining access road remaining after mining to access the upper reaches of Elk <br />Creek where the facility is located. <br />See Map 2.05 -M1, Sheet 3 of 6, General Facilities, and Map 2.04 -M4, Sheet 3 of 4, Drainage and Sediment <br />Control Plan for the location of the facility. <br />TR -73 2.05 -23c Rev. Jan. 2012 <br />