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Soils: <br />April 10, 2012 <br />Exploration License No. COC -74911 <br />Township 13 South. Range 93 West. 6 P.M. <br />Sec 9, Lots 9 -16; <br />Sec I0, Lots 9 -16; <br />Sec 1 1 ,Lots 9 -16; <br />Sec 12, Lots 9 -16; <br />Sec 13, All; <br />Sec 14, All; <br />Sec 15, Lots 1 -10, 14 -15; <br />Sec 16, Lots 1 -4; <br />Sec 23, Lots 1 -15; <br />Sec 24, All; <br />Sec 25, All; <br />Sec 26, Lots 1 -15; <br />Sec 35, All; <br />Sec36, Lots 1 -8, 11 -14. <br />Of the approximately 13,873 acres of surface described above, 67.8% (9,408 acres) of this surface is privately <br />owned, and 32.2% (4,465acres) are managed by the BLM. <br />Exploration drilling activities will be short term and will be conducted over a two year period. <br />Exploration mobilization is expected to begin as soon as approval is given and weather and ground conditions <br />allow. It is expected to be completed within two years. <br />The Exploration Area and Geology: <br />The proposed exploration license covers upland areas located between the West Roatcap Creek and <br />Leroux Creek drainages and north of the community of Hotchkiss. The area lies generally west of the Orchard <br />Valley coal lease tracts (C -53356 and C37210). The geology and coal character are anticipated to be similar to <br />the Orchard Valley coal lease tract with at least one seam of recoverable coal, outcropping on the southern slopes <br />of the Oak Mesa, and dipping into the mesa at approximately 5 degrees. <br />Topography: <br />The surface lands of this proposed exploration area consist of a combination of privately owned and <br />BLM managed sections, however, a majority of the exploration drill pads will occur on private surface, with <br />seven drillholes expected to occur on BLM surface. The elevation in the exploration area ranges from <br />approximately 7,350 ft. above mean sea level (amsl) in the drainages of the exploration license area to 9,100 ft. <br />(amsl) in the north portion of the area. Forty-three (43) drill sites are proposed with elevations ranging from <br />approximately 7,590 to 8,974 feet (amsl). This area is semi -arid with annual precipitation of approximately 17 <br />inches, mostly as snow. <br />Hydrology: <br />Both Leroux Creek and West Roatcap Creek are perennial drainages with minor flows occurring all year <br />long. The flow volumes vary in response to spring snowmelt and runoff from major rainfall events. Flow volumes <br />will also vary depending upon the amount of runoff that is diverted into irrigation channels that run through this <br />area and provide water to local orchards and farm land. There are two other drainages, the Dever, and Jay Creek <br />drainages that are in the area of the proposed exploration drilling activities. These drainages have intermittent <br />flows that varying depending upon runoff available and varying amounts captured by local irrigation canals. <br />Proposed exploration activities will be located no closer than 1,000 ft. to Leroux Creek or West Roatcap drainage <br />channels. <br />The environmental resources and values occurring within the proposed area are projected to be consistent <br />