2013-08-19_PERMIT FILE - X201323004 (2)

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Soils are derived primarily from sandstones, siltstones, and shales. Occasionally the soil profile exhibits considerable interbedding of parent materials. Soils in the area are generally weakly developed with low organic matter content. Drill sites are located in Rentsac - Moyerson - Forelle soil groups. These soils are considered shallow to moderately deep, well drained, weakly developed, and clay loam to sandy clay loam in texture. Vegetation is predominately of the big sagebrush/wheatgrass community with a substantial invasion of cheatgrass. Some juniper occurs in the area. The drill sites are located in side drainages leading to Red Wash, a tributary to the White River. Prior drilling in the area indicated no presence of a groundwater aquifer. Any groundwater encountered was very limited in extent indicating origination from an aquiclude. Drill site locations were selected based on target location and adjusted to minimize disturbance and environmental impact. Slopes are gentle ranging from 2 to 10 %. For a more thorough but general description of the area and the resources involved please refer to the mining permit application for Permit # C- 1981 -018 and the Application and Exploration Plan for Federal Coal Exploration License. Item #5 a. One contractor- supplied drilling unit should be sufficient to complete the drilling program within the scheduled time period. A basic drilling unit consists of a Gardner Denver 1500 or 2000 or equivalent air -water combination drill mounted on a tandem axle truck, drill - pipe trailer or truck, auxiliary air compressors and tools, a water truck and supporting pickup truck. The chosen access routes coupled with proposed reclamation will minimize soil erosion. During the time proposed for drilling, there should be little or no surface water in the area. Mud pits will be constructed at each location to receive water that may be produced from each hole. The drill hole plugging procedure will prevent pollution of any ground water intercepted. Damage to air quality, wildlife and wildlife habitat are unlikely due to the proposed limited access and short term nature of the exploration program. Hazards to public health and safety are essentially non- existent due to the nature of the equipment and the remote location. Blue Mountain Energy, Inc. will designate a representative that will be assigned to the drilling unit and will be on site during field operations. Access to the drill sites will be from a combination of existing roads and new overland trails. Approximately 7,560 feet of new trail would be needed for proposed new access (see attached map). Vegetation will be cleared from the route to minimize the threat of fires when warranted. The drill hole locations will be prepared by removing vegetation and topsoil from the drilling site. Each drill pad will be about 75' by 120' in size. Mud pits to contain drilling fluids will be constructed adjacent to the drill pad. Holes will be drilled with 5 -1/4 inch diameter bits using air with mist injection and/or water and drilling mud as dictated by hole conditions. Cuttings samples will be obtained and described. Drilling depths will range from a projected 300 to 685 feet. Total depth of each hole will be below the targeted `B' seam. Detailed down hole geophysical logs will be obtained at each hole. Coring may be conducted at some of the holes.