2012-12-27_PERMIT FILE - P2012018

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Appendices — DRMS Form 2 Public Royal USA Inc. Wray Mesa NOl Drilling Information Twenty -four holes are proposed for the claimed lands. Approximate GPS coordinates (UTM NAD83 Zone 12) and hole particulars are shown in Table 1. The holes will start in sediments belonging to the Brushy Basin shale member of the Morrison formation or Dakota sandstone, ending in or just below the Salt Wash Member of the Morrison Formation. Table 1: Proposed Drill Hole Location Particulars CONFIDENTIAL Drilling will be done by a truck- mounted rotary rig capable of drilling from approximately 1,000 feet to 1,500 feet, such as a Gardner - Denver 1500 or equivalent. Drill hole diameter will be in the 5 "to 6 "range, and cuttings will be removed from the hole by airlift. Although considered unlikely, a nominal 1,000 gal to 2000 gal water truck will be available if water is needed to make an air /foam mixture. If an air foam mixture is needed, then the foaming agent will be an environmentally benign, nonhazardous and non- toxic product such as Quik- FoamTM or equivalent. Cuttings will be directed into the containment pits at each site and mineralized cuttings will be segregated within the pit. Probing will be accomplished with a truck- mounted probe or portable unit possessing gamma and electric logging tools. No tool with a radioactive source will be used. Water from the water truck may be added to the hole to improve the down -hole electrical characteristics, however this is unlikely. Surface Disturbance No roads will be constructed. The anticipated surface disturbance will be the possible excavation of 24, nominal, 10 foot x 10 foot by 3 foot deep containment pits for cuttings and, if needed, airlifted water from the drill holes. The estimated disturbed area for the pit and stockpiled material will be about 13ft X 18ft or 234ft or 0.005 acres per site. The test pits will be within the larger 30 ft x 65 ft proposed drill pads. For bonding calculations, the entire 1,950 square foot drill pad will be considered "disturbed" although this is highly unlikely. Total surface disturbance therefore is estimated to be about 1.07 acres. Given the equipment and mud pit constraints, a pad can be a more amorphous shape than indicated above as it is configured to fit around minor topographic and vegetative features. Figure A -1 is a schematic drawing of a proposed pad with equipment locations and cuttings /fluid flow. Appendices Page 3 of 9