2012-09-19_PERMIT FILE - X201222311 (3)

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Exhibit "C" Exploration License No. COC -74931 Drilling and Related Activities: As much as possible drilling wi €l be conducted with minimal site preparation, since the drill rig can be set -up and leveled using self - contained hydraulic jacks. Where site preparation is necessary due to the need to utilize drilling fluids, a pad having maximum dimensions of approximately 180 feet by 120 feet will be established (approx. 0.5 acre disturbance per site). Pad preparation will involve the use of a tracked dozer approximately Dfi sized or a utility type backhoe to establish a level drill site and dig a mud pit should the need require it. If topsoil exists, up to 12" will be salvaged and stored in a stockpile along one or more sides of the pad and marked with a "topsoil" sign(s). Drill holes will be drilled using 8 3 {4 inch rotary hole to a depth of up to 20411. depending upon ground conditions. This hole will be cased with a resulting hole diameter oft} % inches the remainder of the rotary drilling will be with a 6'1/4 inch drill to the desired depth above the coal seam where a 3 inch core drill will recover portions of the material above and below the coal seam, and the coal seam. See Table 1 for the approximate rotary and core depths and total hole depth. In order to avoid potential sample contamination, drill holes will be completed to the extent possible with air, air -foam, or water as the circulation medium. Due to the difficulty in keeping drillholes open, and sample contamination minimized, if drilling muds are necessary to maintain circulation the drillhole integrity, polymer muds that are free of metallic compounds will be utilized. It is estimated that approximately 5,000 gallons of water will be used for each drillhole under normal drilling conditions. Drill mud pit(s) for the containment of drilling fluids and cuttings will be excavated with a backhoe within the pad area. The pit will be approximately 20 feet in length, 4 feet in width and 8 feet deep (23.7 cubic yards each). All drilling and related operations will be conducted by experienced exploration drillers in such a way as to minimize potential environmental impacts, and will be supervised by a qualified geologist. During drilling operations, water levels and flows in the drill holes (if any) will be closely monitored in order to characterize hydrologic conditions in the seams intersected. Samples of immediate roof and floor rock materials and of each coal seam intersected will be lagged and may be collected during drilling for subsequent analysis. Drillholes will be logged by the geologist as drilling occurs and will be e- logged to provide appropriate information for the geologist to use in developing a geologic model of the exploration area. Transportation of these crews will be by one or two pickups per shift. One pickup for the crew and one for the geologist. During drilling, Oxbow will control dust from drilling and related activities, divert and control bath natural runoff from disturbed areas and fluid loss from drilling, and will clean -up any trash or debris. if air is utilized as the circulation medium, dust from drilling will be controlled by a flexible shroud at the drill collar. Drill cuttings and portable pits or excavated mud pits will effectively contain drilling fluids as discussed above. Hole_ Completion: Oxbow may complete several of these exploration holes as water monitoring wells, in preparation for base line monitoring required for permit submission. Identification of specific drillhoies to be completed as water monitoring wells will occur once initial meetings with the Colorado Mined Land Reclamation Board and the CDRMS have occurred and we have received their direction on locations for monitoring wells. Drill holes selected to be completed as monitoring wells will be completed in accordance with the guidelines agreed to by the BLM and CDRMS for monitoring wells. Once mining has been completed and monitoring is no longer required, these wells will be reclaimed as described below under site reclamation. The projected hole depths are provided on Table 1. August 26, 2011