EX-96.3 23 exhibit963-falkirksk1300.htm EX-96.3 Document


SEC S-K 1300 Technical Report Summary
The Falkirk Mining Company
Underwood, North Dakota            
Effective Date: December 31, 2021
Report Date: February 14, 2022






Report Prepared by:
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The Falkirk Mining Company
2801 1st Street SW
Underwood, ND 58576


Signed by Qualified Persons:
Renee Schultz, PE
            



SEC S-K 1300 Technical Report Summary
The Falkirk Mining Company                                     02/14/2022
TABLE OF CONTENTS
0.0 LIST OF TABLES AND FIGURES
6
0.1 LIST OF FIGURES
6
0.2 LIST OF TABLES
6
0.3.1 CERTIFICATE OF QUALIFIED PERSON, RENEE E. SCHULTZ
7
1.0    EXECUTIVE SUMMARY
9
1.1 PROPERTY DESCRIPTION AND OWNERSHIP
9
1.2 GEOLOGY AND MINERALIZATION
10
1.3 STATUS OF EXPLORATION
10
1.4 DEVELOPMENT AND OPERATIONS
10
1.5 MINERAL RESOURCE ESTIMATE
11
1.6 MINERAL RESERVE ESTIMATE
11
1.7 ECONOMIC ASSESSMENT
12
1.8 PERMITTING REQUIREMENTS
13
1.9 QUALIFIED PERSON’S CONCLUSIONS AND RECOMMENDATIONS
13
2.0     INTRODUCTION
14
3.0    PROPERTY DESCRIPTION
17
3.1 PROPERTY LOCATION
17
3.2 PROPERTY AREA
17
3.3 LEASES AND MINERAL RIGHTS
18
3.4    SIGNIFICANT ENCUMBRANCES TO THE PROPERTY
31
3.5    SIGNIFICANT FACTORS AND RISKS
31
4.0    ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY
32
4.1 PHYSIOGRAPHY, TOPOGRAPHY AND VEGETATION
32
4.2 ACCESSIBILITY
32
4.3 CLIMATE
32
4.4 LOCAL RESOURCES AND INFRASTRUCTURE
32
5.0    HISTORY OF THE PROPERTY
33
5.1 PREVIOUS OPERATIONS
33
5.2 EXPLORATION AND DEVELOPMENT HISTORY
33
6.0     GEOLOGICAL SETTING, MINERALIZATION AND DEPOSIT
34
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SEC S-K 1300 Technical Report Summary
The Falkirk Mining Company                                     02/14/2022
6.1 REGIONAL AND LOCAL GEOLOGY
34
7.0    EXPLORATION
39
7.1 DRILLING EXPLORATION
40
7.1.1 DRILLING METHODS
40
7.1.2 GENERAL DRILLING PROCEDURES
40
7.1.3 DRILLING EXPLORATION PROGRAMS
41
7.2 HYDROGEOLOGIC CHARACTERIZATION
42
7.2.1 GROUNDWATER STUDIES
42
7.2.2 SURFACE WATER STUDIES
45
7.3 EARLY GEOTECHNICAL STUDIES
46
8.0     SAMPLE PREPARATION, ANALYSES, AND SECURITY
50
8.1 SAMPLE COLLECTION AND SHIPMENT
50
8.2 SAMPLE PREPERATION AND ANALYSIS
51
8.3 ASTM Standards
51
8.4 SAFETY
52
8.5 ROUND ROBIN PROGRAMS
52
8.6 BALANCES
52
8.7 SAMPLE RECEIVING AND STORAGE ROOM
52
8.8 PREP ROOM
53
8.9 LABORATORY TESTING
53
8.10 QP STATEMENT ON THE ADEQUACY OF SAMPLE PREPARATION, SECURITY AND ANALYTICAL PROCEEDURES
53
9.0     DATA VERIFICATION
54
9.1 DRILLHOLE DATA VERIFICATION
54
9.2 LIMITATIONS ON DATA VERIFICATION
55
9.3 QP’S STATEMENT OF ADEQUACY OF DATA
55
10.0    MINERAL PROCESSING
56
11.0    MINERAL RESOURCE ESTIMATES
56
11.1 BASIS FOR MINERAL RESOURCE ESTIMATE
56
11.2 STRATIGRAPHIC MODEL
56
11.2.1 HORIZONS
57
11.2.2 QUALITY PARAMETERS AND DENSITY DETERMINATION
57
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SEC S-K 1300 Technical Report Summary
The Falkirk Mining Company                                     02/14/2022
11.2.3 MODELING PROCESS
58
11.2.4 JUSTIFICATION OF MODELING METHODS
58
11.2.5 QP’s REVIEW AND VALIDATION OF MODEL
58
11.3 MINERAL RESOURCE ESTIMATES
59
11.3.1 LIMITS AND CONSTRAINTS ON THE MINERAL RESOURCE ESTIMATES
59
11.3.2 GENERATION OF PITS SHELLS FOR MINERAL RESOURCE ESTIMATES
60
11.3.3 MINERAL RESOURCE CLASSIFICATION AND CATAGORIZATION
60
11.3.4 MINERAL RESOURCE STATEMENT
62
11.3.5 UNCERTAINTY OF MINERAL RESOURCE ESTIMATES
62
12.0     MINERAL RESERVE ESTIMATES
63
12.1 BASIS FOR MINERAL RESERVE ESTIMATE
63
12.2 MINERAL RESERVE ESTIMATES
63
12.2.1 KEY ASSUMPTIONS, PARAMETERS, AND METHODS
63
12.2.2 MINERAL RESERVE STATEMENT
65
13.0    MINING METHODS
67
13.1 ANNUAL AND TOTAL LIGNITE PRODUCTION
67
13.2 TYPE AND GENERAL MINING METHOD
67
13.3 RUN OF MINE TONNAGES
69
13.4 ENGINEERING STUDIES – DESIGN PARAMETERS
71
13.4.1 PIT DESIGN
71
13.4.2 SPOIL STABILITY STUDIES
72
13.5 HAUL ROADS, RAMPS AND DRAGLINE WALKWAYS
73
13.6 PERSONNEL
74
13.7 MAJOR EQUIPMENT
75
15.0    INFRASTRUCTURE
76
16.0    MARKET STUDIES
76
16.1 MARKETS
76
16.1.1 MATERIAL CONTRACTS
76
17.0    ENVIRONMENTAL STUDIES, PERMITTING, AND PLANS, NEGOTIATIONS, OR AGREEMENTS WITH LOCAL INDUVIDUALS OR GROUPS
77
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SEC S-K 1300 Technical Report Summary
The Falkirk Mining Company                                     02/14/2022
17.1 PERMITS
77
17.2 ENVIRONMENTAL STUDIES
80
17.3 BASELINE STUDIES
80
17.3.1 GROUNDWATER
80
17.3.2 SURFACE WATER
82
17.3.3 GEOCHEMISTRY
82
17.3.4 ARCHEOLOGY
82
17.3.5 WATERS OF THE US (WOTUS)
83
17.4 WASTE DISPOSAL
83
17.5 SITE MONITORING
83
17.5.1 WATER SAMPLING
83
17.5.2 SOIL SAMPLING
83
17.6 WATER MANAGEMENT
84
17.7 RECLAMATION BOND
84
17.8 PLANS, NEGOTIATIONS, OR AGREEMENTS WITH LOCAL INDIVIDUALS OR GROUPS
84
17.9 MINE CLOSURE PLANS
84
17.10 QP’s OPINION OF ADEQUECY OF CURRENT PLANS
85
17.11 DESCRIPTION OF ANY COMMITMENTS TO ENSURE LOCAL PROCUREMENT AND HIRING
85
18.0    CAPITAL AND OPERATING COSTS
86
18.1 OPERATING COSTS
86
18.2 CAPITAL COSTS
87
19.0    ECONOMIC ANALYSIS
87
19.1 KEY ASSUMPTIONS, PARAMETERS AND METHODS
87
19.2 ANNUAL CASH FLOWS
88
19.3    SENSITIVITY ANALYSIS
88
21.0    OTHER RELEVANT DATA AND INFORMATION
89
22.0     INTERPRETATIONS AND CONCLUSIONS
89
22.1    GEOLOGY AND MINERAL RESOURCE ESTIMATES
89
23.0    RECOMMENDATIONS
89
24.0    ADDITIONAL REFERENCES
90
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SEC S-K 1300 Technical Report Summary
The Falkirk Mining Company                                     02/14/2022
0.0 LIST OF TABLES AND FIGURES

0.1 LIST OF FIGURES
 
FIGURE 3.1. LOCATION OF THE FALKIRK MINE
FIGURE 4.1. TOPOGRAPHIC FEATURES OF THE FALKIRK MINE
FIGURE 6.1. GEOLOGIC AND TOPOGRAPHIC BEDROCK MAP OF NORTH DAKOTA (BLUEMLE, 1983)
FIGURE 6.2. STRATIGRAPHIC COLUMN OF THE FALKIRK MINE
FIGURE 6.3. GEOLOGIC CROSS SECTIONS UNDWERWOOD MINE AREA*
FIGURE 6.4. GEOLOGIC CROSS SECTIONS RIVERDALE MINE AREA*
FIGURE 7.1. LOCATION OF DRILL HOLES* 
FIGURE 7.2. EXISTING, DESTROYED AND CERTIFIED MONITORING WELL LOCATION MAP* 
FIGURE 7.3. LOCATION OF GEOTECHNICAL BORINGS UNDERWOOD MINE AREA
FIGURE 7.4. LOCATION OF GEOTECHNICAL BORINGS RIVERDALE MINE AREA
FIGURE 8.1. NACOAL 2020 ROUND ROBIN PROGRAM SUMMARY. (NACOAL, 2020) 
FIGURE 12.1. LIFE OF MINE MAP* 
FIGURE 13.1. TYPICAL RANGE DIAGRAM FOR DRAGLINE SINGLE PASS
FIGURE 13.2. TYPICAL RANGE DIAGRAM FOR DRAGLINE SINGLE PASS WITH TRUCK-SHOVEL PREBENCH
FIGURE 13.3. SLOPE STABILITY ANALYSIS (BARR ENGINEERING, 2013)
FIGURE 13.4 TYPICAL SECTIONS FOR HAUL ROADS, RAMPS, AND DRAGLINE WALKWAYS
FIGURE 15.1 LOM INFRATRUCTURE MAP*

* FIGURES ARE LOCATED IN THE SUPPLEMENTAL FIGURES ATTACHMENT


0.2 LIST OF TABLES
 
TABLE 0.0 QP SECTIONS OF RESPONSIBILITY
TABLE 1.1 MINERAL RESOURCE ESTIMATES
TABLE 1.2 MINERAL RESERVE ESTIMATES
TABLE 3.1 IDENTIFICATION OF LEASES
TABLE 3.2 IDENTIFICATION OF ACQUISITIONS
TABLE 8.1 LIST OF ASTM STANDARDS FOR MVTL 
TABLE 11.1 STRATIGRAPHIC HORIZONS
TABLE 11.2 TYPICAL QUALITY PARAMETERS
TABLE 11.3 UNIT COSTS-MINERAL RESOURCE ESTIMATION PARAMETERS
TABLE 11.4 MINERAL RESOURCE CATEGORY DISTANCES
TABLE 11.5MINERAL RESOURCE ESTIMATES
TABLE 12.1 MINERAL RESERVE ESTIMATES
TABLE 13.1 PROJECTED LIFE OF MINE QUALITY
TABLE 13.2 RECOVERY RATES BY SEAM
TABLE 13.3 R-O-M DILUTION PARAMETERS
TABLE 13.4 EFFECTIVE HIGHWALL ANGLE BY DEPTH
TABLE 13.5 LIST OF MAJOR EQUIPMENT
TABLE 17.1 LIST OF ACTIVE PERMITS AT THE FALKIRK MINE
TABLE 18.1 COST ASSUMPTIONS
TABLE 18.2 LOM OPERATING COSTS
TABLE 18.3 CAPITAL COSTS
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SEC S-K 1300 Technical Report Summary
The Falkirk Mining Company                                     02/14/2022

0.3.1 CERTIFICATE OF QUALIFIED PERSON, RENEE E. SCHULTZ
(a)I am the Senior Mining Engineer at The Falkirk Mining Company in Underwood, ND; a position I have held since 2018. I have been an engineer at Falkirk since 2002.
(b)This certificate applies to the Technical report Summary titled “SEC S-K 1300 Technical Report Summary, The Falkirk Mining Company, Underwood, ND”
(c)I am a Qualified Person(QP) for the purpose of SEC S-K 1300. My qualifications as a qualified person are as follows:
a.I am a graduate of Montana Tech School of Mines and Geology in Butte, MT with a Bachelor of Science in Mining Engineering in 2001
b.I am a Professional Engineer in the state of North Dakota (License Number PE-6256).
c.My relevant experience of over 20 years, for the purpose of the Technical Report Summary, includes 4 years in Surveying, 3 years in Geology/Modeling, and 13 years in Engineering/Mine Planning
d.I am currently employed by The Falkirk Mining Company where I conduct personal inspections of each mining area on a regular basis described in this Technical Report Summary.
e.I am Responsible for the sections listed in Table 0.0 of the Technical Report.
f.I have read SEC S-K 1300 Technical Report Summary requirements. The part of the Technical Report Summary for which I am responsible has been prepared in compliance with this requirement.
g.At the effective date of the Technical Reporrt Summary, the the best of my knowledge, information, and belied, the parts of the Technical Report Summary for which I am responsible, contains all scientific and technical information that is required to be disclosed to make the Technical Report Summary not misleading.
h.I consent to the filing of the Technical Report Summary as an exhibit to NACCO Industries, Inc.’s annual report. I also consent to the use of any quotes of summaries in that annual report to the extent they pertain to the Technical Report Summary sections for which I am responsible.
Dated the 14th day of February, 2022
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Renee E. Schultz, PE
The Falkirk Mining Company

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SEC S-K 1300 Technical Report Summary
The Falkirk Mining Company                                     02/14/2022
The effective date of this Technical Report Summary is December 31, 2021.
QP NameSections Responsible ForSignature
Renee E. Schultz
1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24
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Table 0.0 QP SECTIONS OF RESPONSIBILITY

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SEC S-K 1300 Technical Report Summary
The Falkirk Mining Company                                     02/14/2022

1.0EXECUTIVE SUMMARY
This Technical Report Summary (TRS) was prepared for The Falkirk Mining Company (Falkirk) to report Mineral Resources and Mineral Reserves for the Falkirk Mine in McLean County, North Dakota.

1.1 PROPERTY DESCRIPTION AND OWNERSHIP
NACCO Industries (NACCO), through a portfolio of mining and natural resources businesses, operates under three business segments: Coal Mining, North American Mining and Minerals Management. The Coal Mining segment operates surface coal mines under long-term contracts with power generation companies and an activated carbon producer pursuant to a service-based business model. Coal is surface-mined in North Dakota, Texas, Mississippi and Louisiana. Each mine is fully integrated with its customer's operations.
The Falkirk Mining Company (Falkirk), a wholly-owned subsidiary of North American Coal (NACoal), which is a wholly-owned subsidiary of NACCO, operates the Falkirk Mine in North Dakota. Falkirk is the sole supplier of lignite coal to the CCSPP pursuant to a contract under which Falkirk also supplies approximately 0.3 million tons of lignite coal per year to Spiritwood Station power plant.
The CCSPP and Spiritwood Station are owned by Great River Energy (“GRE”). In May 2020, GRE announced its intent to sell or retire the CCSPP in the second half of 2022 and modify Spiritwood Station to be fueled by natural gas.
On June 30, 2021, GRE entered into an agreement to sell the CCSPP and the adjacent high-voltage direct current transmission line to Bismarck, North Dakota-based Rainbow Energy Center, LLC (“Rainbow Energy”) and its affiliates. The transaction between GRE and Rainbow Energy is subject to the satisfaction of certain conditions, including regulatory approvals associated with the sale of the CCSPP and the related transmission assets and the posting of a performance bond related to final mine reclamation. If the conditions are satisfied, the transaction is expected to close in the first half of 2022.Upon completion of the sale of the CCSPP, the existing Coal Sales Agreement, the existing Mortgage and Security Agreement and the existing Option Agreement between GRE and Falkirk will be terminated. If GRE's efforts to sell the power plant are successful, a new Coal Sales Agreement (“CSA”) between Falkirk and Rainbow Energy will become effective and Falkirk will begin supplying all coal requirements of the CCSPP concurrent with Rainbow Energy’s acquisition of the power plant. Falkirk will no longer make any coal deliveries to GRE’s Spiritwood Station. Falkirk will be paid a management fee and Rainbow Energy will be responsible for funding all mine operating costs and directly or indirectly providing all of the capital required to operate the mine. The CSA specifies that Falkirk will perform final mine reclamation, which will be funded in its entirety by Rainbow Energy. The initial production period is expected to run ten years from the effective date of the CSA, but the CSA may be extended or terminated early under certain circumstances.
For purposes of this TRS, the QP has assumed the transaction with Rainbow Energy occurs. The production period under the new CSA is expected to run ten years from the effective date of the CSA. Although the CSA may be extended or terminated early under certain circumstances, the LOM has been developed assuming a 10-year period.
The Falkirk Mine is located approximately 50 miles north of Bismarck, North Dakota on a paved access road off U.S. Highway 83. Falkirk holds 335 leases granting the right to mine approximately 43,486 acres of coal interests and the right to utilize approximately 24,324 acres of surface interests. In addition, Falkirk owns in fee 40,666 acres of surface interests and 1,789 acres of coal interests. Substantially all of the leases held by Falkirk were acquired in the early 1970s with initial terms that have been further extended by the continuation of mining operations.

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SEC S-K 1300 Technical Report Summary
The Falkirk Mining Company                                     02/14/2022
1.2 GEOLOGY AND MINERALIZATION
The reserves are located in McLean County, North Dakota, from approximately nine miles northwest of the town of Washburn, North Dakota to four miles north of the town of Underwood, North Dakota. Structurally, the area is located on an intercratonic basin containing a thick sequence of sedimentary rocks. The economically mineable coals in the reserve occur in the Sentinel Butte Formation and the Bullion Creek Formation and are unconformably overlain by the Coleharbor Formation. The Sentinel Butte Formation conformably overlies the Bullion Creek Formation. The general stratigraphic sequence in the upland portions of the reserve area (Sentinel Butte Formation) consists of till, silty sands and clayey silts, main hagel lignite bed, silty clay, lower lignite of the hagel lignite interval and silty clays. Beneath the Tavis Creek, there is a repeating sequence of silty to sand clays with generally thin lignite beds.

1.3 STATUS OF EXPLORATION
Substantial information has been gathered during exploration drilling programs within the region since the 1960s. These data were the fundamental tools used in characterizing substrate composition, geometry, and structure of the Falkirk Mine lignite deposit prior to mining. Exploration programs described in this TRS have considered the stratigraphic nature of the mineralization for the determination of hole spacing, drilling and sampling method, and quality analyses in order to geologically map and evaluate the structural and quality characteristics of the lignite deposit.
The Falkirk Mine lignite deposit is evaluated on a seam-by-seam basis. Drilling exploration data including geologic lithologies, qualities, and hole locations have been compiled in an electronic, geologic database. Drilling exploration programs conducted at the Falkirk Mine have comprised largely of rotary air/mist/mud drilling methods. Drill holes were geophysically logged for natural gamma, density, caliper, and resistivity responses to obtain data related to the subsurface structure. Coal core samples collected for quality analyses were sent to independent commercial laboratories for testing.

1.4 DEVELOPMENT AND OPERATIONS
The Falkirk Mine is a multiple lignite seam surface mining operation which supplies approximately 7.5 to 8.2 million tons of lignite per year to the adjacent CCSPP. Actual annual production is dictated by customer demand.  The CCSPP sends the generated electricity to MISO grid to supply electricity to GRE’s member Co-ops.
The lignite at the Falkirk Mine surface mining operation is uncovered using dragline, dozer, and conventional truck and shovel mining methods due to the proximity of the lignite to the surface and the physical characteristics of the deposit. Lignite is mined using electric cable shovels and large front-end loaders to load a fleet of bottom dump haul trucks and is directly shipped to the CCSPP or placed on the lignite stockpile. The overall average Run of Mine (ROM) quality of the mined lignite seams meets the required power plant quality specifications. Therefore, no mineral processing is performed by Falkirk.
The Falkirk Mine delivered its first coal in 1978, with mine development work taking place in the preceding few years. The Falkirk Mine has, or is currently constructing, all supporting infrastructure for mining operations within the permitted areas.
The Falkirk Mine employs a staff and workforce of approximately 400 employees with fluctuations in employment levels for changes in demand at the CCSPP.


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SEC S-K 1300 Technical Report Summary
The Falkirk Mining Company                                     02/14/2022
1.5 MINERAL RESOURCE ESTIMATE

The Mineral Resources in this TRS have been estimated by applying a series of geologic and physical limits as well as high-level mining and economic constraints. The mining and economic constraints were limited to a level sufficient to support reasonable prospect for future economic extraction of the estimated Mineral Resources. The potential of economic extraction is justified by the terms of the existing (and future) CSA with the CCSPP Owners through 2032.
The QP based the Mineral Resource estimates for the Falkirk Mine on a stratigraphic geologic model generated from the verified drilling exploration data.
Mineral Resources classification distances from point of measurement for each class are as followed: Measured – less than 1,320 feet, Indicated - from 1,320 feet to 2,640 feet, and Inferred – from 2,640 – 5,280 ft.
There are no reported Mineral Resources at the Falkirk Mine. The economically mineable portions of the Measured and Indicated Mineral Resources within the constraints of the CSA and under lease control have been converted to Mineral Reserves.
Quality
Calorific ValueMoistureAshSulfur
Falkirk MineResource ClassificationTonnage(Btu/lb)(%wt)(%wt)(%wt)
Underwood FieldMeasured 31,599,8826,41740.417.050.57
 Indicated NANANANANA
Measured + Indicated31,599,8826,41740.417.050.57
InferredNANANANANA
RiverdaleMeasured46,820,9016,61439.446.370.58
FieldIndicated199,7216,31737.1010.690.73
Measured + Indicated47,020,6236,61239.436.390.58
InferredNANANANANA
TotalMeasured78,420,7846,53439.836.650.57
Indicated199,7216.31737.1010.690.73
TotalMeasured+Indicated78,620,5056,53439.826.660.57
Table 1.1. Mineral Resource Estimates
1.6 MINERAL RESERVE ESTIMATE
The Mineral Reserves in this TRS were determined to be the economically mineable portion of the Mineral Resources after the consideration of modifying factors related to the mining process which convert Measured Resources to Proven Mineral Resources and Indicated Resources to Probable Mineral Reserves. Inferred Mineral Resources were not considered for Mineral Reserves. A cut-off grade of $2.60/MMBTU has been applied to the Measured and Indicated Resources to upgrade these resources into Proven and Probable Reserves. Mineral Reserves Estimates have been calculated and are shown in Table 1.2.
Parameters for mining dilution, minimum mining thickness, and minimum parting thickness were applied by the QP to the geologic (Mineral Resource) model to create the Mineral Reserve model. Mining pits were projected based on current mining equipment operating parameters and a maximum cumulative stripping ratio of 15:1. Mining pits were then sectioned into blocks; adjusting endwall blocks as necessary. Blocks were reviewed by the QP to ensure
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SEC S-K 1300 Technical Report Summary
The Falkirk Mining Company                                     02/14/2022
quality thresholds were met. Recovery rates were applied to the lignite tonnages by seam and then the blocks were sequenced based on a projected total tonnage delivered to the CCSPP through the LOM plan to determine the Measured Resources that would be converted to Mineral Reserves.
This disclosure of Mineral Reserves is based upon the QP’s opinion that the LOM plan and cost estimates has been completed to a Pre-feasibility (PFS) level of accuracy, as defined in 17 Code of Federal Regulations (CFR) Part 229.1300, which includes and supports the QP’s determination of Mineral Reserves.
The Falkirk Mine Mineral Reserve, as of December 31, 2021, is shown in Table 1.2.

Quality
Calorific ValueMoistureAshSulfur
Falkirk MineResource ClassificationTonnage(Btu/lb)(%wt)(%wt)(%wt)
UnderwoodProven 31,599,8826,41740.417.050.57
Field Probable NANANANANA
 Total 31,599,8826,41740.417.050.57
RiverdaleProven46,820,9016,61439.446.370.59
FieldProbable199,7216,31737.1010.690.73
Total47,020,6236,61239.436.390.58
Total ReservesProven78,420,7846,53439.836.650.57
Probable199,7216.31737.1010.690.73
Total78,620,5056,53439.826.660.57

Table 1.2. Mineral Reserve Estimates.
The QP’s opinion on risks related to Mineral Reserve estimates include changes in customer demand for any reason, including, but not limited to, dispatch of power generated by other energy sources ahead of coal, fluctuations in demand due to unanticipated weather conditions, regulations or comparable policies which may promote planned and unplanned outages at the CCSPP, economic conditions, including an economic slowdown and a corresponding decline in the use of electricity, governmental regulations and/or inflationary adjustments which could have a material adverse effect on Falkirk's financial condition, results of operations and cash flows.

At the time of this TRS, the QP is not aware of any specific factors that would materially affect the Mineral Reserve estimates.

 
1.7 ECONOMIC ASSESSMENT 
The current delivery requirements included in the LOM plan are based on the most recent projections from the CCSPP owners. All costs were estimated based on the LOM tonnage requirements.
The model used to estimate the operating costs is based on historical costs and performance measures that have been maintained by the Falkirk Mine since its inception. These costs are reviewed and verified on an annual basis to account for changes in site conditions or the operating plan. This information is then used to estimate the projected costs for the LOM plan.
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SEC S-K 1300 Technical Report Summary
The Falkirk Mining Company                                     02/14/2022
Capital costs include equipment expenditures, land acquisition, and additional mine area development costs. All capital costs incurred by the Falkirk Mine are reimbursed by the CCSPP owners as required under the terms of the CSA. Should the CSA be extended beyond 2032, additional capital costs would be required and funded by the CCSPP owners.
 

The primary key assumption in economic viability of the Falkirk Mine is the continued operation of the CCSPP and the resultant required annual deliveries. The analysis of economic viability of the Falkirk Mine is supported by the all-requirements CSA’s and the life-of-mine plan associated with those contracts. Compensation required under the CSA includes reimbursement of all mine operating costs plus a contractually-agreed fee based on the amount of coal delivered. CCSPP is located directly adjacent to the Falkirk Mine (i.e. a mine-mouth operation) and 100% of the required coal to operate the CCSPP is sourced from the Falkirk Mine. The CSA eliminates the Falkirk Mine’s exposure to spot coal market price fluctuations.

1.8 PERMITTING REQUIREMENTS
The Falkirk Mine operates under several permits from the state of North Dakota’s Public Service Commission/Reclamation Division under delegated authority of the United States Department of the Interior, Office of Surface Mining Reclamation Enforcement (OSMRE) Surface Mining Control and Reclamation Act (SMCRA). In addition to the mining permit, Falkirk has secured numerous other permit and agreements, including a National Pollutant Discharge Elimination System (NPDES) permit and an Individual Permit issued by the United States Army Corp of Engineers (USCOE). All permits have been secured and continue to be renewed in a timely fashion.
Falkirk currently has all permits in place for the Falkirk Mine to operate and adhere to a mine plan projected through April 2032. Barring any regulatory changes out of Falkirk’s control, the QP does not anticipate hurdles for approval of future renewal applications.
1.9 QUALIFIED PERSON’S CONCLUSIONS AND RECOMMENDATIONS
In the QP’s opinion, the geological data, sampling, modeling, and estimate are carried out in a manner that both represents the data well and mitigates the likelihood of material misrepresentations for the statements of Mineral Resources. There are currently no recommendations for Mineral Resources.
In the QP’s opinion, the operational and mine planning data, LOM Plan, and estimation are carried out in a manner that both represents the data and operational experience and methodology well and mitigates the likelihood of material misrepresentations for the statements of Mineral Reserves. There are currently no recommendations for Mineral Reserves.
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SEC S-K 1300 Technical Report Summary
The Falkirk Mining Company                                     02/14/2022
2.0     INTRODUCTION
This technical report was prepared for The Falkirk Mining Company (Falkirk) which owns and operates the Falkirk Mine.
The purpose for which this technical report summary was prepared is to report Mineral Resources and Mineral Reserves for the Falkirk Mine located in McLean County, North Dakota.
The sources of information and data contained in the technical report or used in its preparations were supplied by FALKIRK and include data used to produce geologic models, production data, environmental support documents, third-party technical studies, resource and reserve estimates, cost estimates, and economic analyses. A large portion of the technical information is summarized from approved Surface Mining Permits issued by the North Dakota Public Service Commission . Additional references to specific studies and documents are provided in Section 23.0 of this technical report summary (TRS).

Qualified persons (QPs) are employed by FALKIRK and directly oversee the drilling exploration programs, daily operations, and/or financial reports of the Falkirk Mine. As such, inspections are conducted on a regular basis and no individual date of inspection has been identified. Renee E. Schultz is a licensed Professional Engineer, over 20 years of experience in Surveying, Geology/Modeling, and Engineering/Mine Planning, as well as with the economic aspects of each discipline.
This is the first TRS filed to the United States Securities and Exchange Commission (SEC) in accordance with S-K Subpart 1300 regulations, therefore no preexisting technical report summary exists with the SEC. Mineral Resource and Reserve estimations prior to December 31, 2021 were reported in accordance with guidance of Industry Guide 7.
This terms of reference for this TRS include
–US English spelling;
–Imperial units of measure;
–Lignite qualities are presented in weight percent (wt%) and lignite tonnages are present in short tons (2000 lbs);
–Coordinate System is presented in imperial units using the North American Datum 1927 (NAD27), North Dakota State Plane, South Zone;
–Nominal US Dollars as of 2021.
Key Acronyms and definitions for this TRS include:

ARAs-Received Basis
AROAsset Retirement Obligation
ASTMAmerican Society for Testing and Materials
BCYBank Cubic Yard
BHTIBase Horizon Till
BMPsBest Management Practices
CSACoal Sales Agreement
COCChain of Custody
COSCCost of Severed Coal
14

SEC S-K 1300 Technical Report Summary
The Falkirk Mining Company                                     02/14/2022
CRIRSCO
CCSPP
Committee for Mineral Reserves International Reporting Standards
Coal Creak Station Power Plant
DMRsDischarge Monitoring Reports
DTMDigital Terrain Model
EISEnvironmental Impact Statement
FMCFalkirk Mining Company
FoSFactor of Safety
GEAGeotechnical Engineering Associates
GWMPGround Water Monitoring Plan
LbsPounds
LOMLife of Mine
mg/LMilligrams per Liter
mslMean Sea Level
MtMillion Tons
MVTLMinnesota Valley Testing Laboratories
NDNorth Dakota
NACoalThe North American Coal Corporation
NOVNotice of Violation
NPDESNational Pollutant Discharge Elimination System
OSMREUnited States Department of the Interior, Office of Surface Mining Reclamation Enforcement
QA/QCQuality Assurance/Quality Control
QP(s)Qualified Person(s)
R-O-MRun of Mine
R-O-WRight of Way
SECUnited States Securities and Exchange Commission
SGSpecific Gravity
S-K 1300SEC’s Subpart S-K 1300 (17 CFR 229.1300)
SPGMSuitable Plant Growth Material
SPTStandard Penetration Testing
SWPPPStorm Water Pollution and Prevention Plan
TDSTotal Dissolved Solids
TRSTechnical Report Summary
15

SEC S-K 1300 Technical Report Summary
The Falkirk Mining Company                                     02/14/2022
TSSTotal Suspended Solids
U.S.United States
USCSUnified Soil Classification System
USGSUnited States Geological Survey
WOTUSWaters of the United States

16

SEC S-K 1300 Technical Report Summary
The Falkirk Mining Company                                     02/14/2022
3.0    PROPERTY DESCRIPTION
3.1 PROPERTY LOCATION
The Falkirk Mine is located approximately 4 miles south of Underwood, North Dakota (ND) or approximately 7.5 miles northwest of Washburn, ND, in McLean County, which is approximately 55 miles north of Bismarck, ND. The entrance to the mine is by means of a paved road, 1st Street SW, that is located approximately 2 mile west of Highway 83. The general location of the Falkirk Mine is shown in Figure 3.1 (Location of Falkirk Mine). The CCSPP is adjacent to the Falkirk Mine.
image_3a.jpg
Figure 3.1. Location of the Falkirk Mine.

3.2 PROPERTY AREA
The Falkirk Mine encompasses two Mine Areas – Underwood and Riverdale. The Underwood Mine Area contains mining permits NAFK 8405, 9601, and 8705, while the Riverdale Mine Area contains mining permit NAFK - 9503. The lignite located in each Mine Area that is encompassed in the LOM plan is considered a Mineral Reserve.
17

SEC S-K 1300 Technical Report Summary
The Falkirk Mining Company                                     02/14/2022
Falkirk holds 335 leases granting the right to mine approximately 43,486 acres of coal interests and the right to utilize about 24,324 acres of surface interests.  In addition, Falkirk owns in fee about 40,666 acres of surface interests and 1,789 acres of coal interests. 


3.3 LEASES AND MINERAL RIGHTS
The name or number and expiration date of each title, claim, mineral right, lease, or option under which Falkirk or an affiliated NACCO company has or will have the right to hold or operate on the property is described on Table 3.1 (Identification of Leases) and Table 3.2 (Identification of Acquisitions).

The leases and deeds are recorded at the McLean County courthouse and are a matter of public record. Substantially all of the leases were acquired in the 1970’s and have been replaced with new leases and/or have continuation provisions that generally permit the leases to be continued beyond their fixed terms.  The leases obligate Falkirk to make payments based on the amount of lignite mined from the subject property.  Most royalty rates range from $.08 - $.16 per ton of lignite mined.  A few leases include annual escalator provisions.  Payments may also include surface damage payments and advanced or minimum royalty payments.  Production royalties are calculated monthly based on surveys and are generally paid on a quarterly basis, although in certain situations royalties are paid monthly. 

Table 3.1 Shows The Falkirk Mining Company leases and Table 3.2 shows the Falkirk Mining Company acquisitions.

Table 3.1. Identification of Leases
Lease IdLease TypeLease DateLease Expiration Date
3RO-03637Coal Lease Agreement9/18/19979/17/2017
3RO-03638Coal Lease Agreement10/20/199710/19/2017
3RO-03639Coal Lease Agreement1/29/19981/28/2018
3RO-03641Surface & Coal Lease Agreement1/6/19991/5/2009
3RO-03645Surface & Coal Lease Agreement2/11/20032/10/2013
3RO-03646Coal Lease10/30/200310/29/2033
3RO-03647Coal Lease10/30/200310/29/2033
3RO-03648Coal Lease10/30/200310/29/2033
3RO-03649Coal Lease10/30/200310/29/2033
3RO-03650Coal Lease10/30/200310/29/2033
3RO-03652Coal Lease10/30/200310/29/2033
3RO-03653Coal Lease10/30/200310/29/2033
3RO-03654Coal Lease10/30/200310/29/2033
3RO-03655Surface & Coal Lease Agreement6/9/20046/8/2044
3RO-03656Coal Lease Agreement2/22/20072/21/2047
3RO-03657Coal Lease Agreement3/9/20073/8/2047
3RO-03658Surface & Coal Lease Agreement6/11/20076/10/2027
3RO-03659Surface & Coal Lease Agreement6/11/20076/10/2027
18

SEC S-K 1300 Technical Report Summary
The Falkirk Mining Company                                     02/14/2022
3RO-03660Surface & Coal Lease Agreement7/10/20077/9/2047
3RO-03661Coal Lease Agreement10/4/200710/3/2047
3RO-03662Surface & Coal Lease Agreement12/13/200712/12/2047
3RO-03663Coal Lease Agreement9/29/20079/28/2047
3RO-03664Surface & Coal Lease Agreement3/7/20083/6/2048
3RO-03665Coal Lease Agreement3/8/20083/7/2048
3RO-03666Coal Lease Agreement3/7/20083/6/2048
3RO-03667Surface & Coal Lease Agreement3/20/20083/19/2048
3RO-03668Coal Lease Agreement6/4/20086/3/2048
3RO-03669Coal Lease Agreement3/28/20083/27/2048
3RO-03670Surface & Coal Lease Agreement4/2/20084/1/2048
3RO-03671Coal Lease Agreement5/31/20085/30/2048
3RO-03672Coal Lease Agreement6/4/20086/3/2048
3RO-03673Coal Lease Agreement6/19/20086/18/2028
3RO-03674Surface & Coal Lease Agreement7/3/20087/2/2048
3RO-03675Coal Lease Agreement7/3/20087/2/2028
3RO-03676Surface & Coal Lease Agreement7/18/20087/17/2048
3RO-03677Coal Lease Agreement7/16/20087/15/2048
3RO-03678Coal Lease Agreement8/26/20088/25/2048
3RO-03679Surface & Coal Lease Agreement12/13/200812/12/2048
3RO-03680Surface & Coal Lease Agreement5/5/20095/4/2049
3RO-03681Coal Lease Agreement12/17/200912/16/2049
3RO-03682Coal Lease7/29/20107/28/2055
3RO-03683Coal Lease7/29/20107/28/2055
3RO-03684Coal Lease7/29/20107/28/2055
3RO-03685Coal Lease7/29/20107/28/2055
3RO-03686Coal Lease7/29/20107/28/2055
3RO-03687Coal Lease7/29/20107/28/2055
3RO-03688Coal Lease Agreement5/12/20105/11/2050
3RO-03689Coal Lease Agreement5/12/20105/11/2050
3RO-03690Surface & Coal Lease Agreement5/12/20105/11/2050
3RO-03691Surface & Coal Lease Agreement5/12/20105/11/2050
3RO-03692Surface & Coal Lease Agreement3/25/20103/24/2050
3RO-03693Coal Lease7/14/20147/13/2019
3RO-03694Coal Lease Agreement9/11/20179/10/2037
3RO-03695Coal Lease Agreement8/21/20178/20/2037
3RO-03696Coal Lease Agreement9/15/20179/14/2037
3RO-03697Coal Lease Agreement10/4/201710/3/2037
3RO-03698Coal Lease Agreement10/7/201710/6/2037
3RO-03699Coal Lease Agreement10/11/201710/10/2037
3RO-03700Coal Lease Agreement10/13/201710/12/2037
3RO-03701Coal Lease Agreement10/10/201710/9/2037
3RO-03702Coal Lease Agreement9/25/20179/24/2037
3RO-03703Coal Lease Agreement10/20/201710/19/2037
3RO-03704Coal Lease Agreement10/23/201710/22/2037
3RO-03705Coal Lease Agreement12/7/201712/6/2037
3RO-03706Coal Lease Agreement12/14/201712/13/2037
19

SEC S-K 1300 Technical Report Summary
The Falkirk Mining Company                                     02/14/2022
3RO-03707Coal Lease Agreement1/26/20181/25/2038
3RO-03708Coal Lease Agreement3/7/20183/6/2038
3RO-03709Coal Lease Agreement3/9/20183/8/2038
3RO-03710Coal Lease Agreement3/15/20183/14/2038
3RO-03711Surface & Coal Lease Agreement4/16/20184/15/2043
3RO-03712Surface & Coal Lease Agreement4/17/20184/16/2043
3RO-03713Surface & Coal Lease Agreement4/19/20184/18/2043
3RO-03714Surface & Coal Lease Agreement4/20/20184/19/2043
3RO-03715Surface & Coal Lease Agreement4/23/20184/22/2043
3RO-03716Surface & Coal Lease Agreement5/25/20185/24/2043
3RO-03717Surface & Coal Lease Agreement5/29/20185/28/2043
3RO-03718Surface & Coal Lease Agreement8/8/20188/7/2043
3RO-03719Surface & Coal Lease Agreement11/1/201810/31/2043
3RO-03720Surface & Coal Lease Agreement11/6/201811/5/2043
3RO-03721Surface Lease Agreement1/28/20201/27/2040
3RV-03255Exploration Contract & Coal Lease9/12/19729/11/2013
3RV-03261Exploration Contract & Coal Lease8/28/19728/27/2013
3RV-03280Exploration Contract & Coal Lease8/30/19728/29/2013
3RV-03281Exploration Contract & Coal Lease8/30/19728/29/2013
3RV-03283Exploration Contract & Coal Lease9/12/19729/11/2013
3RV-03284Exploration Contract & Coal Lease9/13/19729/12/2013
3RV-03285Exploration Contract & Coal Lease9/12/19729/11/2013
3RV-03310Coal Lease8/15/19628/14/2002
3RV-03311Coal Lease5/24/19625/23/2002
3RV-03316Coal Lease6/8/19626/7/2002
3RV-03317Coal Lease2/12/19642/11/2004
3RV-03321Coal Lease1/25/19621/24/2002
3RV-03322Coal Lease2/16/19622/15/2002
3RV-03323Coal Lease1/12/19671/11/2017
3RV-03324Coal Lease11/21/196911/20/1994
3RV-03325Coal Lease1/23/19621/22/2002
3RV-03326Coal Lease9/11/19629/10/2002
3RV-03327Coal Lease9/25/19629/24/2002
3RV-03329Coal Lease5/23/19625/22/2002
3RV-03330Coal Lease2/16/19622/15/2002
3RV-03331Coal Lease5/29/19625/28/2002
3RV-03332Coal Lease1/16/19671/15/2007
3RV-03337Coal Lease1/26/19621/25/2002
3RV-03339Coal Lease5/29/19625/28/2002
3RV-03340Coal Lease2/21/19622/20/2002
3RV-03341Coal Lease5/25/19625/24/2002
3RV-03342Coal Lease5/22/19625/21/2002
3RV-03345Coal Lease2/9/19622/8/2002
3RV-03347Coal Lease12/8/196912/7/1994
3RV-03348Coal Lease12/16/197012/15/2015
3RV-03355Coal Lease11/9/197111/8/2016
3RV-03356Coal Lease11/9/197111/8/1996
20

SEC S-K 1300 Technical Report Summary
The Falkirk Mining Company                                     02/14/2022
3RV-03360Coal Lease11/11/197111/10/2016
3RV-03362Coal Lease11/29/197111/28/1996
3RV-03363Coal Lease1/24/19721/23/1997
3RV-03367Coal Lease8/22/19728/21/1997
3RV-03378Coal Lease11/29/197211/28/1997
3RV-03382Coal Lease3/6/19733/5/1998
3RV-03386Coal Lease5/11/19735/10/1998
3RV-03387Coal Lease8/7/19738/6/1998
3RV-03392Coal Lease4/25/19744/24/2014
3RV-03393Coal Lease5/7/19745/6/2014
3RV-03399Exploration Contract & Coal Lease7/27/19717/26/2012
3RV-03407Coal Lease6/11/19746/10/2014
3RV-03408Coal Lease5/28/19745/27/2014
3RV-03409Coal Lease6/11/19746/4/2014
3RV-03410Coal Lease6/12/19746/4/2014
3RV-03411Coal Lease6/5/19746/4/2014
3RV-03412Coal Lease6/14/19746/4/2014
3RV-03416Coal Lease6/14/19746/4/2014
3RV-03417Coal Lease6/12/19746/11/2014
3RV-03418Coal Lease8/30/19748/29/2014
3RV-03420Coal Lease9/19/19749/18/2014
3RV-03421Coal Lease10/12/197410/11/2014
3RV-03422Coal Lease10/11/197410/10/2014
3RV-03423Coal Lease11/22/197411/21/2014
3RV-03424Coal Lease12/5/197412/4/2014
3RV-03425Coal Lease12/9/197412/8/2014
3RV-03426Coal Lease12/10/197412/9/2014
3RV-03427Coal Lease12/11/197412/10/2014
3RV-03428Coal Lease12/31/197412/30/2014
3RV-03429Coal Lease12/30/197412/29/2014
3RV-03430Coal Lease12/15/197412/14/2014
3RV-03431Coal Lease1/2/19751/1/2015
3RV-03433Coal Lease3/11/19753/10/2015
3RV-03436Exploration Contract & Coal Lease8/19/19728/18/2013
3RV-03437Exploration Contract & Coal Lease8/18/19728/17/2013
3RV-03439Exploration Contract & Coal Lease8/30/19728/29/2013
3RV-03442Exploration Contract & Coal Lease9/5/19729/4/2013
3RV-03444Exploration Contract & Coal Lease4/12/19724/11/2013
3RV-03447Exploration Contract & Coal Lease8/21/19728/20/2013
3RV-03450Exploration Contract & Coal Lease8/31/19738/30/1994
3RV-03451Exploration Contract & Coal Lease4/12/19724/11/2013
3RV-03452Exploration Contract & Coal Lease4/12/19724/11/2013
3RV-03454Exploration Contract & Coal Lease9/12/19729/11/2013
3RV-03455Exploration Contract & Coal Lease9/12/19729/11/2013
3RV-03456Exploration Contract & Coal Lease9/11/19729/10/2013
3RV-03457Exploration Contract & Coal Lease8/31/19728/30/2013
3RV-03458Exploration Contract & Coal Lease9/12/19729/11/2013
21

SEC S-K 1300 Technical Report Summary
The Falkirk Mining Company                                     02/14/2022
3RV-03459Exploration Contract & Coal Lease9/12/19729/11/2013
3RV-03460Exploration Contract & Coal Lease8/21/19728/20/2013
3RV-03461Exploration Contract & Coal Lease9/11/19729/10/2013
3RV-03465Exploration Contract & Coal Lease5/26/19725/25/2013
3RV-03472Coal Lease8/19/19718/18/1996
3RV-03482Coal Lease6/25/19746/24/2014
3RV-03483Coal Lease6/25/19746/24/2014
3RV-03484Coal Lease6/25/19746/24/2014
3RV-03485Coal Lease6/25/19746/24/2014
3RV-03486Coal Lease6/25/19746/24/2014
3RV-03501Exploration Contract & Coal Lease5/26/19725/25/2013
3RV-03504Exploration Contract & Coal Lease5/25/19725/24/2013
3RV-03523Exploration Contract & Coal Lease5/22/19725/21/2013
3RV-03526Exploration Contract & Coal Lease5/27/19725/26/2013
3RV-03528Exploration Contract & Coal Lease5/24/19725/23/2013
3RV-03529Exploration Contract & Coal Lease5/25/19725/24/2013
3RV-03532Exploration Contract & Coal Lease5/23/19725/22/2013
3RV-03539Exploration Contract & Coal Lease6/5/19726/4/2013
3RV-03542Exploration Contract & Coal Lease5/24/19725/23/2013
3RV-03543Exploration Contract & Coal Lease5/25/19725/24/2013
3RV-03547Exploration Contract & Coal Lease5/24/19725/23/2013
3RV-03550Exploration Contract & Coal Lease5/30/19725/29/2013
3RV-03554Exploration Contract & Coal Lease5/23/19725/22/2013
3RV-03568Exploration Contract & Coal Lease4/12/19724/11/2013
3RV-03569Exploration Contract & Coal Lease4/12/19724/11/2013
3RV-03600Exploration Contract & Coal Lease7/23/19717/22/2012
3RV-03601Exploration Contract & Coal Lease7/21/19717/20/2012
3RV-03609Exploration Contract & Coal Lease7/21/19717/20/2012
3RV-03611Exploration Contract & Coal Lease8/6/19718/5/2012
3RV-03624Coal Lease1/19/19821/18/2022
3RV-03625Coal Lease1/19/19821/18/2022
3UN-03006Exploration Contract & Coal Lease9/23/19719/22/2012
3UN-03007Exploration Contract & Coal Lease9/23/19719/22/2012
3UN-03008Exploration Contract & Coal Lease3/3/19733/2/2014
3UN-03009Exploration Contract & Coal Lease7/23/19717/22/2012
3UN-03010Exploration Contract & Coal Lease7/22/19717/21/2012
3UN-03011Exploration Contract & Coal Lease11/22/197211/21/2013
3UN-03017Exploration Contract & Coal Lease7/22/19717/21/2012
3UN-03019Exploration Contract & Coal Lease3/3/19733/2/2014
3UN-03023Exploration Contract & Coal Lease7/22/19717/21/2012
3UN-03026Lease10/1/19719/30/2011
3UN-03027Exploration Contract & Coal Lease9/22/19719/21/2012
3UN-03032Exploration Contract & Coal Lease5/18/19735/17/2014
3UN-03035Exploration Contract & Coal Lease8/5/19718/4/2012
3UN-03040Exploration Contract & Coal Lease10/5/197110/4/2012
3UN-03041Exploration Contract & Coal Lease8/10/19788/9/2011
3UN-03043Exploration Contract & Coal Lease10/7/197110/6/2012
22

SEC S-K 1300 Technical Report Summary
The Falkirk Mining Company                                     02/14/2022
3UN-03045Exploration Contract & Coal Lease10/9/197110/8/2012
3UN-03050Coal Lease8/24/19778/15/2027
3UN-03051Coal Lease8/24/19778/23/2027
3UN-03053Exploration Contract & Coal Lease7/29/19717/28/2012
3UN-03054Lease8/22/19738/21/1998
3UN-03057Exploration Contract & Coal Lease9/23/19719/22/2012
3UN-03058Exploration Contract & Coal Lease7/24/19717/23/2012
3UN-03059Exploration Contract & Coal Lease7/26/19717/25/1992
3UN-03060Exploration Contract & Coal Lease10/5/197110/4/2012
3UN-03061Exploration Contract & Coal Lease7/27/19717/26/1992
3UN-03066Exploration Contract & Coal Lease7/28/19717/27/2012
3UN-03067Exploration Contract & Coal Lease10/1/19719/30/2012
3UN-03071Exploration Contract & Coal Lease7/27/19717/26/2012
3UN-03077Exploration Contract & Coal Lease7/27/19717/26/2012
3UN-03079Exploration Contract & Coal Lease7/24/19717/23/2012
3UN-03082Exploration Contract & Coal Lease7/20/19717/19/2012
3UN-03083Exploration Contract & Coal Lease7/21/19717/20/2012
3UN-03084Exploration Contract & Coal Lease7/20/19717/19/2012
3UN-03085Exploration Contract & Coal Lease1/30/19731/29/2014
3UN-03088Exploration Contract & Coal Lease7/27/19717/26/2012
3UN-03096Exploration Contract & Coal Lease7/29/19717/28/2012
3UN-03102Exploration Contract & Coal Lease9/28/19719/27/1992
3UN-03114Exploration Contract & Coal Lease9/30/19719/29/2012
3UN-03115Exploration Contract & Coal Lease7/29/19717/28/2012
3UN-03117Exploration Contract & Coal Lease9/28/19719/27/2012
3UN-03123Exploration Contract & Coal Lease7/22/19717/21/2012
3UN-03126Exploration Contract & Coal Lease7/22/19717/21/2012
3UN-03128Exploration Contract & Coal Lease7/31/19717/30/2012
3UN-03129Exploration Contract & Coal Lease8/6/19718/5/2012
3UN-03130Exploration Contract & Coal Lease9/27/19719/26/2012
3UN-03132Exploration Contract & Coal Lease7/20/19717/19/2012
3UN-03135Exploration Contract & Coal Lease10/4/197110/3/2012
3UN-03137Exploration Contract & Coal Lease4/12/19724/11/2013
3UN-03139Exploration Contract & Coal Lease4/12/19724/11/2013
3UN-03140Exploration Contract & Coal Lease4/12/19724/11/2013
3UN-03141Exploration Contract & Coal Lease4/12/19724/11/2013
3UN-03142Exploration Contract & Coal Lease4/12/19724/11/2013
3UN-03143Exploration Contract & Coal Lease4/12/19724/11/2013
3UN-03154Exploration Contract & Coal Lease8/16/19738/15/1994
3UN-03155Exploration Contract & Coal Lease10/10/19731/9/1994
3UN-03191Coal Lease5/14/19745/13/2014
3UN-03196Coal Lease8/19/19718/18/1996
3UN-03197Coal Lease6/25/19746/24/2014
3UN-03198Coal Lease6/25/19746/24/2014
3UN-03199Coal Lease6/25/19746/24/2014
3UN-03200Coal Lease6/25/19746/24/2014
3UN-03201Coal Lease6/25/19746/24/2014
23

SEC S-K 1300 Technical Report Summary
The Falkirk Mining Company                                     02/14/2022
3UN-03204Lease3/27/19803/26/1990
3UN-03205Lease3/27/19803/26/1990
3UN-03206Lease3/27/19803/26/1990
3UN-03207Lease3/27/19803/26/1990
3UN-03208Coal Lease1/19/19821/18/2022
3UN-03209Coal Lease1/19/19821/18/2022
3UN-03220Coal Lease11/15/197211/14/1997
3UN-03221Coal Lease11/15/197211/14/1997
3UN-03230Coal Lease4/4/19734/3/1998
3UN-03231Coal Lease8/21/19738/20/1998
3UN-03232Coal Lease8/21/19738/20/1998
3UN-03233Coal Lease8/21/19738/20/1998
3UN-03241Coal Lease7/28/19976/30/2017
3UN-03242Surface Lease Agreement11/27/199511/26/2035
3UN-03252Coal Lease5/1/20034/30/2023
3UN-03253Surface & Coal Lease Agreement11/11/200511/10/2015
3UN-03800Coal Lease4/26/20074/25/2037
3UN-03801Coal Lease4/26/20074/25/2037
3UN-03803Coal Lease4/26/20074/25/2037
3UN-03804Lease9/1/197512/31/2045
3UN-03805Coal Lease1/1/201812/31/2037
3UN-03806Exploration Contract & Coal Lease4/2/19734/1/2014
3UN-03807Surface & Coal Lease Agreement5/16/20165/15/2036
3UN-03808Surface & Coal Lease Agreement11/1/201610/31/2036
3UN-03809Surface & Coal Lease Agreement11/1/201610/31/2036
3UN-03810Surface & Coal Lease Agreement11/2/201611/1/2036
3UN-03811Surface & Coal Lease Agreement11/3/201611/2/2036
3UN-03812Surface & Coal Lease Agreement10/31/201610/30/2036
3UN-03813Surface & Coal Lease Agreement1/4/20171/3/2037
3UN-03814Surface & Coal Lease Agreement12/29/201612/28/2036
3UN-03815Surface & Coal Lease Agreement3/2/20173/1/2037
3UN-03816Surface & Coal Lease Agreement4/19/20174/18/2027
3UN-03817Coal Lease Agreement6/1/20171/29/2013
3UN-03818Coal Lease Agreement7/14/20177/13/2037
3UN-03819Coal Lease Agreement7/18/20177/17/2037
3UN-03820Surface & Coal Lease Agreement6/19/20186/18/2038
3UN-03821Coal Lease Agreement6/18/20186/17/2038
3UN-03822Coal Lease Agreement6/18/20186/17/2038
3UN-03823Coal Lease Agreement7/3/20187/2/2038
3UN-03824Coal Lease Agreement9/18/20189/17/2038
3UN-03825Surface Lease Agreement9/18/20189/17/2038
3UN-03826Surface & Coal Lease Agreement2/5/20192/4/2039
3UN-03827Surface & Coal Lease Agreement2/12/20192/11/2039
3UN-03828Surface & Coal Lease Agreement3/21/20193/20/2039
3UN-03829Coal Lease11/20/201811/19/2048
3UN-03830Coal Lease11/20/201811/19/2048
3UN-03831Coal Lease11/20/201811/19/2048
24

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3UN-03832Coal Lease11/20/201811/19/2048
3UN-03833Coal Lease Agreement1/9/20201/8/2050
3UN-03835Surface & Coal Lease Agreement7/20/20207/19/2040
3UN-03836Surface & Coal Lease Agreement4/22/20204/21/2040
3UN-03837Surface & Coal Lease Agreement4/14/20204/13/2040
3UN-03838Surface Lease Agreement12/31/201912/30/2039
3UN-03839Coal Lease6/12/20206/11/2050
3UN-03840Coal Lease Agreement8/26/20208/25/2040
3UN-03841Coal Lease Agreement8/26/20208/25/2040
3UN-03842Coal Lease Agreement8/27/20208/26/2040
3UN-03843Surface Lease Agreement12/16/202012/15/2040
3UN-03844Coal Lease Agreement9/9/20209/8/2040
3UN-03845Coal Lease Agreement11/28/202011/27/2040
3UN-03846Coal Lease Agreement11/30/202011/29/2040
3UN-03847Coal Lease Agreement12/2/202012/1/2040
3UN-03848Coal Lease Agreement12/2/202012/1/2040
3UN-03849Coal Lease Agreement12/3/202012/2/2040
3UN-03850Coal Lease Agreement12/3/202012/2/2040
3UN-03851Coal Lease Agreement12/5/202012/4/2040
3UN-03852Coal Lease Agreement12/7/202012/6/2040
3UN-03853Coal Lease Agreement12/12/202012/11/2040
3UN-03854Coal Lease Agreement12/16/202012/15/2040
3UN-03855Coal Lease Agreement1/5/20211/4/2041
3UN-03856Coal Lease Agreement8/19/20218/18/2041
3UN-03857Coal Lease Agreement8/24/20218/23/2041


Table 3.2 IDENTIFICATION OF ACQUISITIONS
Agreement IdAgreement TypeAgreement DateAgreement Expiration Date
3-FKC001Warranty Deed8/19/198512/31/2099
3-FKC002Warranty Deed6/11/198712/31/2099
3-FKC003Warranty Deed9/16/198812/31/2099
3-FKC004Warranty Deed12/13/199112/31/2099
3-FKC005Mineral Deed2/19/199312/31/2099
3-FKC006Mineral Deed10/25/199312/31/2099
3-FKC007Mineral Deed1/3/199412/31/2099
3-FKC008Warranty Deed7/12/199412/31/2099
3-FKC009Warranty Deed7/15/199612/31/2099
3-FKC010Mineral Deed1/8/199812/31/2099
3-FKC011Mineral Deed1/26/199912/31/2099
3-FKC012Warranty Deed2/24/199912/31/2099
3-FKC013Warranty Deed11/8/200012/31/2099
3-FKC014Mineral Deed2/22/20062/21/2105
3-FKS001Warranty Deed10/6/197512/31/2099
3-FKS002Warranty Deed8/12/197512/31/2099
3-FKS003Warranty Deed8/29/197512/31/2099
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3-FKS004Warranty Deed8/29/197512/31/2099
3-FKS005Warranty Deed10/6/197512/31/2099
3-FKS006Warranty Deed10/6/197512/31/2099
3-FKS007Warranty Deed10/6/197512/31/2099
3-FKS008Warranty Deed10/6/197512/31/2099
3-FKS009Warranty Deed10/6/197512/31/2099
3-FKS010Warranty Deed8/4/197612/31/2099
3-FKS011Warranty Deed4/18/198512/31/2099
3-FKS012Warranty Deed5/5/198012/31/2099
3-FKS013Warranty Deed6/20/198012/31/2099
3-FKS014Warranty Deed7/29/198012/31/2099
3-FKS015Warranty Deed10/31/198012/31/2099
3-FKS016Warranty Deed10/31/198012/31/2099
3-FKS018Warranty Deed2/10/198112/31/2099
3-FKS019Warranty Deed4/27/198112/31/2099
3-FKS020Warranty Deed6/29/198112/31/2099
3-FKS022Warranty Deed3/15/198212/31/2099
3-FKS024Warranty Deed6/29/198312/31/2099
3-FKS025Warranty Deed1/28/198612/31/2099
3-FKS027Warranty Deed5/21/198412/31/2099
3-FKS028Warranty Deed7/20/198412/31/2099
3-FKS029Warranty Deed7/25/198412/31/2099
3-FKS030Warranty Deed8/31/198412/31/2099
3-FKS031Warranty Deed11/2/198412/31/2099
3-FKS032Personal Representative Deed11/24/198412/31/2099
3-FKS033Warranty Deed11/26/198412/31/2099
3-FKS034Warranty Deed11/30/198412/31/2099
3-FKS035Warranty Deed2/11/198512/31/2099
3-FKS036Warranty Deed2/15/198512/31/2099
3-FKS037Warranty Deed5/31/198512/31/2099
3-FKS038Warranty Deed8/8/198512/31/2099
3-FKS039Warranty Deed8/19/198512/31/2099
3-FKS040Warranty Deed12/3/198512/31/2099
3-FKS041Warranty Deed12/30/198512/31/2099
3-FKS042Warranty Deed12/30/198512/31/2099
3-FKS044Warranty Deed4/17/198612/31/2099
3-FKS045Warranty Deed6/12/198612/31/2099
3-FKS046Warranty Deed7/28/198612/31/2099
3-FKS047Warranty Deed12/19/198612/31/2099
3-FKS048Warranty Deed12/30/198612/31/2099
3-FKS049Warranty Deed6/11/198712/31/2099
3-FKS050Warranty Deed9/9/198712/31/2099
3-FKS051Warranty Deed10/30/198712/31/2099
3-FKS052Warranty Deed10/30/198712/31/2099
3-FKS053Warranty Deed1/9/198812/31/2099
3-FKS054Warranty Deed9/16/198812/31/2099
3-FKS055Warranty Deed9/16/198812/31/2099
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3-FKS056Warranty Deed8/26/198912/31/2099
3-FKS057Warranty Deed8/30/198912/31/2099
3-FKS058Warranty Deed7/13/199012/31/2099
3-FKS059Warranty Deed7/13/199012/31/2099
3-FKS060Warranty Deed12/13/199112/31/2099
3-FKS061Warranty Deed12/19/199112/31/2099
3-FKS063Warranty Deed9/17/199212/31/2099
3-FKS064Warranty Deed9/17/199212/31/2099
3-FKS066Warranty Deed10/12/199312/31/2099
3-FKS067Warranty Deed10/12/199312/31/2099
3-FKS068Warranty Deed12/31/199312/31/2099
3-FKS069Warranty Deed7/12/199412/31/2099
3-FKS070Warranty Deed10/22/199412/31/2099
3-FKS071Warranty Deed11/16/199412/31/2099
3-FKS072Warranty Deed12/22/199412/31/2099
3-FKS073Warranty Deed1/9/199512/31/2099
3-FKS074Warranty Deed1/9/199512/31/2099
3-FKS075Warranty Deed1/9/199512/31/2099
3-FKS076Warranty Deed1/9/199512/31/2099
3-FKS077Warranty Deed3/28/199512/31/2099
3-FKS082Warranty Deed5/15/199512/31/2099
3-FKS083Warranty Deed6/16/199512/31/2099
3-FKS084Warranty Deed7/14/199512/31/2099
3-FKS085Warranty Deed10/27/199512/31/2099
3-FKS086Warranty Deed11/15/199512/31/2099
3-FKS087Warranty Deed11/27/199512/31/2099
3-FKS088Warranty Deed12/15/199512/31/2099
3-FKS089Warranty Deed12/12/199512/31/2099
3-FKS090Warranty Deed2/16/199612/31/2099
3-FKS091Warranty Deed2/19/199612/31/2099
3-FKS093Warranty Deed5/15/199612/31/2099
3-FKS094Warranty Deed6/21/199612/31/2099
3-FKS095Warranty Deed7/15/199612/31/2099
3-FKS096Warranty Deed8/9/199612/31/2099
3-FKS097Warranty Deed8/9/199612/31/2099
3-FKS098Warranty Deed10/15/199612/31/2099
3-FKS099Warranty Deed11/27/199612/31/2099
3-FKS100Warranty Deed3/7/199712/31/2099
3-FKS101Warranty Deed3/7/199712/31/2099
3-FKS102Warranty Deed3/7/199712/31/2099
3-FKS103Warranty Deed3/7/199712/31/2099
3-FKS104Warranty Deed3/5/199712/31/2099
3-FKS105Warranty Deed1/7/199912/31/2099
3-FKS106Warranty Deed7/7/199812/31/2099
3-FKS107Warranty Deed8/14/199712/31/2099
3-FKS108Warranty Deed2/29/200012/31/2099
3-FKS109Warranty Deed1/23/200112/31/2099
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3-FKS110Warranty Deed12/23/199912/31/2099
3-FKS111Warranty Deed2/24/199912/31/2099
3-FKS112Warranty Deed11/24/199912/31/2099
3-FKS113Warranty Deed3/14/200012/31/2099
3-FKS114Warranty Deed5/10/200012/31/2099
3-FKS115Warranty Deed11/8/200012/31/2099
3-FKS116Warranty Deed8/15/200112/31/2099
3-FKS117Warranty Deed8/15/200112/31/2099
3-FKS118Warranty Deed9/10/200112/31/2099
3-FKS119Warranty Deed1/14/200212/31/2099
3-FKS120Warranty Deed1/17/200212/31/2099
3-FKS121Warranty Deed2/19/200212/31/2099
3-FKS122Warranty Deed2/19/200212/31/2099
3-FKS123Warranty Deed4/18/200212/31/2099
3-FKS124Warranty Deed6/13/200212/31/2099
3-FKS125Warranty Deed12/17/200212/31/2099
3-FKS126Warranty Deed6/23/200312/31/2099
3-FKS127Warranty Deed2/20/200412/31/2099
3-FKS128Warranty Deed10/10/200312/31/2099
3-FKS129Warranty Deed4/10/200312/31/2099
3-FKS130Warranty Deed3/19/200412/31/2099
3-FKS131Deed of Personal Representative8/23/200412/31/2099
3-FKS132Warranty Deed11/10/200412/31/2099
3-FKS134Warranty Deed8/1/200612/31/2099
3-FKS135Warranty Deed4/29/200512/31/2099
3-FKS136Warranty Deed5/16/200612/31/2099
3-FKS137Warranty Deed10/2/200612/31/2099
3-FKS138Warranty Deed9/29/200612/31/2099
3-FKS139Warranty Deed8/21/200612/31/2099
3-FKS140Warranty Deed9/29/200612/31/2099
3-FKS141Quit Claim Deed12/6/200512/31/2099
3-FKS142Warranty Deed5/19/200612/31/2099
3-FKS143Warranty Deed7/17/200612/31/2099
3-FKS144Warranty Deed7/18/200612/31/2099
3-FKS145Trustee's Deed9/1/200612/31/2099
3-FKS146Warranty Deed12/5/200612/31/2099
3-FKS147Warranty Deed1/24/200712/31/2099
3-FKS148Warranty Deed3/9/200712/31/2099
3-FKS149Warranty Deed3/20/200712/31/2099
3-FKS150Warranty Deed3/20/200712/31/2099
3-FKS151Warranty Deed6/15/200712/31/2099
3-FKS152Warranty Deed7/31/200712/31/2099
3-FKS153Warranty Deed8/31/200712/31/2099
3-FKS154Warranty Deed2/8/200812/31/2099
3-FKS155Warranty Deed1/23/200812/31/2099
3-FKS156Warranty Deed1/23/200812/31/2099
3-FKS157Warranty Deed4/25/200812/31/2099
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3-FKS158Warranty Deed6/5/200812/31/2099
3-FKS159Warranty Deed6/16/200812/31/2099
3-FKS160Warranty Deed6/17/200812/31/2099
3-FKS161Warranty Deed1/23/200912/31/2099
3-FKS162Warranty Deed6/4/200912/31/2099
3-FKS163Warranty Deed12/17/200912/31/2099
3-FKS164Warranty Deed4/8/201012/31/2099
3-FKS165Warranty Deed5/13/201012/31/2099
3-FKS166Warranty Deed5/12/201012/31/2099
3-FKS167Warranty Deed5/12/201012/31/2099
3-FKS168Warranty Deed10/6/201012/31/2099
3-FKS169Warranty Deed11/1/201012/31/2099
3-FKS170Warranty Deed11/1/201012/31/2099
3-FKS171Warranty Deed10/29/201012/31/2099
3-FKS172Warranty Deed11/24/201012/31/2099
3-FKS173Warranty Deed12/8/201012/31/2099
3-FKS174Warranty Deed12/21/201012/31/2099
3-FKS175Warranty Deed1/27/201112/31/2099
3-FKS176Warranty Deed1/27/201112/31/2099
3-FKS177Warranty Deed4/1/201112/31/2099
3-FKS178Warranty Deed5/20/201112/31/2099
3-FKS179Warranty Deed5/15/201112/31/2099
3-FKS180Warranty Deed9/2/201112/31/2099
3-FKS181Warranty Deed12/16/201112/31/2099
3-FKS182Warranty Deed12/27/201112/31/2099
3-FKS183Warranty Deed3/23/201212/31/2099
3-FKS184Warranty Deed8/31/201212/31/2099
3-FKS185Warranty Deed12/18/201212/31/2099
3-FKS186Warranty Deed4/9/201312/31/2099
3-FKS187Warranty Deed7/8/201412/31/2099
3-FKS188Warranty Deed8/15/201412/31/2099
3-FKS189Warranty Deed10/21/201412/31/2999
3-FKS190Warranty Deed12/23/201412/31/2099
3-FKS191Warranty Deed5/5/201512/31/2099
3-FKS192Warranty Deed1/6/201512/31/2099
3-FKS193Warranty Deed1/30/201512/31/2099
3-FKS194Warranty Deed8/5/201512/31/2099
3-FKS195Warranty Deed8/5/201512/31/2099
3-FKS196Warranty Deed11/4/201512/31/2099
3-FKS197Warranty Deed12/22/201512/31/2099
3-FKS198Warranty Deed12/21/201512/31/2099
3-FKS199Warranty Deed1/11/201612/31/2099
3-FKS200Warranty Deed5/13/201612/31/2099
3-FKS201Warranty Deed11/29/201612/31/2099
3-FKS202Warranty Deed12/8/201712/31/2099
3-FKS203Warranty Deed12/28/201812/31/2099
3-FKS204Warranty Deed2/14/201912/31/2099
29

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3-FKS205Warranty Deed6/5/201912/31/2099
3-FKS206Warranty Deed11/18/201912/31/2099
3-FKS207Warranty Deed12/20/201912/31/2099
3-FKS208Warranty Deed3/9/202012/31/2099
3-FKS209Warranty Deed1/30/202012/31/2099

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3.4    SIGNIFICANT ENCUMBRANCES TO THE PROPERTY
The Falkirk Mine currently has no significant encumbrances to the property. No Notice of Violations (NOVs) have been issued at the Falkirk Mine in the past three years. Permitting requirements are discussed in Section 17.0 of this TRS.
3.5    SIGNIFICANT FACTORS AND RISKS
Falkirk has not identified any significant risks that may affect the right or ability to perform work on the property. Each lease and special obligations for each lease are reviewed on an annual basis to ensure there is no lapse in lease continuation or payments. If a lease expires or a payment lapses, the landowner may choose not to release this property for mining.
3.6     REGISTRANT ROYALTIES AND INTERESTS
Discussed in Section 3.3 of this TRS.

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4.0    ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY
4.1 PHYSIOGRAPHY, TOPOGRAPHY AND VEGETATION
The Falkirk Mine, located in McLean County, North Dakota (ND) occurs in the physiographic region of North Dakota known as the “Coteau Slope” and is dominated by landforms that are primarily glacial in origin. Glacial sediments or drift belonging to the Coleharbor Formation were deposited over the land comprising this area during the Wisconsin Age. The maximum relief of the Falkirk Mine is approximately 360 feet (msl), with the elevation ranging from 1720 feet (msl) in the Missouri River Watershed drainage to the south to nearly 2080 feet (msl) in the Lake Audubon Watershed drainage to the north. Topographic features of the Falkirk Mine are shown on Figure 4.1 in the Supplemental Figures Attachment (Pre-mining Topography).
The Soil Survey of McLean County indicates that 95 percent of the acreage is in farms and the land-use is approximately 73 percent cultivated cropland. Vegetative baseline studies of the permitted areas further indicate the prominent vegetation of the Falkirk Mine to be cropland Other vegetative designations include native grassland, tame pastureland, shelterbelts, fish and wildlife habitat and wetlands.

4.2 ACCESSIBILITY
Local access to the Falkirk Mine is by way of Highway 83 between Washburn, ND and Underwood, ND. The mine access road, 1st Street SW, connects to Highway 83 and is approximately 2 miles long.
Travel to the Falkirk Mine by air is possible using the Bismarck Airport in Bismarck, ND, approximately 55 miles south of the mine, and then using ground transportation, traveling via Highway 83.
The main railway systems near the Falkirk Mine are Canadian Pacific, BNSF, and Dakota Missouri Valley & Western (DMVW). DMVW crosses through the Falkirk Mine Reserve.

4.3 CLIMATE
The climate at the Falkirk Mine can be characterized as continental with a semi-arid moisture regime. The region receives about 16 inches of moisture annually, 75% of which occurs as rain during the spring, summer and fall months, with the remaining 25% occurring as snow during the winter months. The average length of the growing season is about 130 days. Temperatures throughout the region range from a mean of 7º F. during January, which is the coldest month of the year, to a mean of 69º F. during July, which is typically the warmest month of the year.

4.4 LOCAL RESOURCES AND INFRASTRUCTURE
The towns of Washburn and Underwood are within a 10-mile radius of the Falkirk Mine, the towns of the Riverdale and Turtle Lake are within a 25-mile radius and the towns of Bismarck, Mandan and Minot are within a 60-mile radius. These communities provide a vast portion of the employment base at the Falkirk Mine and the CCSPP.
The Falkirk Mine sources power for mine office facilities and operations from the CCSPP. Water for the mine main office facilities also comes from the CCSPP, but Falkirk’s East shift change building receives water from McLean-Sheridan Rural Water. Fuel for equipment is supplied by Dale’s Petroleum Services, Inc., Enerbase Cooperative Services, Farstad Oil, Inc., and Marthon Petoleum Cooperation. These companies are located in Bismarck, Fargo and Minot, ND. The Falkirk Mine has all supporting infrastructure for mining operations. See Section 15.0 for further detail pertaining to the mine specific infrastructure.

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5.0    HISTORY OF THE PROPERTY
The general information provided below is summarized in the Falkirk Mine North Dakota State Mining Permits. Insert permit information
5.1 PREVIOUS OPERATIONS
The Falkirk Mining Company is the owner and operator of the Falkirk Mine.
Construction of the Falkirk Mine began in 1975 and deliveries began in October 1978 to the CCSPP owned by Great River Energy.
There were several small underground mines and one small surface mine, all operated and closed in the mid 1900’s, on Falkirk Mine property.
5.2 EXPLORATION AND DEVELOPMENT HISTORY

The Falkirk Mine’s initial reserve base began with a coal field known as the Underwood Coalfield. The Underwood Coalfield is roughly a circular deposit ranging from 6 to 8 miles in diameter with the City of Underwood near the center. The Paleocene lignite deposits of the field are bounded by buried Pleistocene glacial channels.

The presence of coal around the City of Underwood has been known since the early pioneer days when farmers dug lignite by hand from erosional banks. Later, small to medium underground mines developed to exploit the resource. The last of the underground mines closed in the early 1950s.

Combined with these old coal mines, there were numerous groundwater wells reporting coal of some thickness. In fact, the coal seams of the Underwood Coalfield are local groundwater aquifers. This lead to government and university studies that began to define the lignite coal geology of the area.

In the late 1960s and early 1970s, The North American Coal Corporation conducted exploration drilling programs to define the lignite resources in the area. These drillholes were mostly rotary holes drilled with air/mist, while some were drilled with mud. These early holes were very widely spaced; however, the data was sufficient to show the existence of a very large lignite coal reserve.

Based on the early drilling data, The North American Coal Corporation developed a contract with a utility to build a mine adjacent to a new power plant on the site. The power plant and mine facilities were located on the southern glacial channel so as to not cover up any of the coal reserve. Extensive drilling and coring programs were also initiated in 1974 and 1975 to more accurately define the coal resources of the area. In general, these drill holes were on a 2-mile spacing; with some further and some closer apart.

The 1974 and 1975 drilling and coring data was used to determine the initial mine plan and was the basis for a 20-year cost of coal study. With this engineering study, an area was defined for a state permit application; requiring additional drilling and analysis of overburden and coals. This permit drilling was conducting in 1976 and 1977. The 1977 drilling also began to fill in the drill hole spacings in future mining areas. Since then, the Falkirk Mine has conducted annual drilling programs with 3 primary objectives:

1.Drill and core on the required 40-acre (1,320 foot) spacing for mining permit applications. Mining permits have a maximum term of 5-years.
2.Drill and core areas to help improve mining efficiency. These areas include buried sub-crop lines, weathered coal areas, and high sulfur and/or sodium areas.
3.Continue to reduce the grid spacing in future mine areas to further define the coal.

Throughout the 50+ year history of the Falkirk Mine’s coalfield, The North American Coal Corporation has always used policies, protocols and procedures to ensure the accuracy and integrity of the drilling and coring data. Experienced geologists have always been on the drill rigs or supervising the engineers and/or students on the drill rigs. However, technologies and understandings change. Prior to 1976, the Falkirk Mine did not have a survey grid established. Hence, drill hole locations and elevations were read from USGS topographic quadrangle maps. Also, prior to 1975, geophysical logging on shallow coal exploration holes was not a common practice. This caused errors and deviations in locations, elevations and depths, especially as compared to more modern methods with higher levels of control. Consequently, all drilling data prior to 1976 has been deleted from Falkirk Mine’s databases and is no longer used for modeling and reserve-resource estimates. It was good information at the time, but it has all been replaced by more accurate and controlled data. In addition, Falkirk has developed drilling, logging, and laboratory
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analysis contracts to help control data accuracy and integrity. Internal documents have also been developed that spell out step by step details of how drilling and sampling will be conducted.

Construction of the Falkirk Mine began in 1975. Coal removal began in 1978 and the CCSPP (2-units , each at 550 MW’s) started Unit #1; Unit #2 started in 1979. The North American Coal Corporation made a lease trade with the Consolidated Coal Company (Consol) in the mid-1980s. North American gave Consol underground coal reserves in Ohio and received coal reserves in North Dakota. These North Dakota coal reserves lie immediately south-southwest of the Underwood Coal Field.

The coal reserves from Consol were incorporated into the Falkirk Mine and became known as the Riverdale Coalfield. Falkirk did receive copies of all of Consol’s drilling data in the area. However, it was lacking in survey accuracy, geophysical logging, as well as known control systems. Thus, beginning in 1989, the Falkirk Mine began a drilling program to redrill all of Consol’s old drill holes and to begin completing drill hole on grids to support mining permit applications and future mine plans. Initial mining of the Riverdale Coalfield began in 1994 .
6.0     GEOLOGICAL SETTING, MINERALIZATION AND DEPOSIT
6.1 REGIONAL AND LOCAL GEOLOGY
The Falkirk Mine is located in the Sentinel Butte Formation of the Fort Union Group (Figure 6.1) which is one of the most prolific lignite-bearing stratum in the state. Substantial information has been gathered during exploration drilling programs within the region since the late 1960s. These data were the fundamental tools used in characterizing substrate composition, geometry, and structure of the Falkirk Mine lignite deposit prior to mining. Understanding of the local geology has continued with regular, fill-in drilling exploration programs and mining operations.


34


image_4.jpg




image_5a.jpg
Figure 6.1. Geologic and Topographic Bedrock Map of North Dakota (Bluemle, 1983)




The coal bearing stratigraphy of North Dakota is depicted on Figure 6.2.

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Figure 6.2. Coal Bearing Stratigraphic Column of North Dakota (Murphy, et al, 2009).




SEC S-K 1300 Technical Report Summary
The Falkirk Mining Company                                     02/14/2022
Structurally, the area is located on the east flank of the Williston Basin, an intercratonic basin containing a thick sequence of sedimentary rocks. The basin dominates the structural characteristics of much of North Dakota, northwestern South Dakota, eastern Montana, and parts of Manitoba and Saskatchewan. The center of the basin is located near the city of Williston, North Dakota, approximately one hundred twenty-five (125) miles northwest of the reserve. The Williston Basin contains sedimentary rocks of every geologic period from the Cambrian (600 million to 500 million years ago) through the Tertiary (65 million to 3 million years ago).

The stratigraphy of the reserve area has been influenced by the deposition from epicontinental seas and by basinal subsidence. The history of the extensive deposition and subsidence can be divided conveniently into the sequence subdivisions (Sauk, Tippecanoe, Kaskaskia, Absaroka, and Zuni) based on the major unconformities within the preserved section. These epicontinental seas deposited a wide range of sedimentary rocks in the basin, mainly carbonates, evaporites, and shales. Regression of the Zuni Sea and successive episodes of the Laramide Orogeny resulted in the deposition of a continuum of marine and terrestrial (Late Cretaceous - Early Tertiary) sedimentary rocks. The terrestrial strata consist of a sequence of sediment transported eastward from western source areas by Early Tertiary fluvial systems. It is doubtful that positive structures (with the exception of the Black Hills uplift) capable of exerting major influence on the dispersal of sediments were present on the craton, but negative structures did influence sediment accumulation and preservation.
The economically minable coals in the reserve occur in the Sentinel Butte Formation (Paleocene) and the Bullion Creek Formation (Paleocene) and are unconformably overlain by the Coleharbor Formation (Quaternary). The Sentinel Butte Formation conformably overlies the Bullion Creek Formation.Paleocene deposition was initiated by an influx of coarse sediment dispersed eastward and southeastward, in deltaic fashion, across early Bullion Creek swamps. The paleoslope appears to have been variable, both in magnitude and in direction, and reflects Paleocene tectonism to the west and northwest. The elevation of western North Dakota, relative to base level, increased during Sentinel Butte time and probably reflects increased deposition to basinal subsidence.    After the close of the Oligocene Epoch (26 million years ago), erosion was the predominant process affecting the existing landscape. This was a time of development of an integrated drainage system over much of the area. The topography of the area in the early Pleistocene was probably similar to the present topography in areas of thin glacial drift.
The area was affected by all four (4) of the major Pleistocene (3 million to 10 thousand years ago) glaciations. Each glacial episode modified the previous landscape through erosional and depositional processes. The area was most recently glaciated during the Wisconsinan stage. During early Wisconsinan (50 thousand years ago) time, the Napolean ice advanced across the area depositing drift on a rolling topography that was mainly bedrock with only a thin veneer of pre-Wisconsinan drift in the topographic lows. Most of the pre-Wisconsinan drift had been removed by erosional processes by the time Napolean ice advanced across the area. The present topography of the general area is mainly stream-dissected bedrock with a veneer of glacial sediments. A few buried glacial meltwater channels are also present.
The reserve area is situated on a glacially modified upland drainage divide of relatively low relief. The reserve is defined on the south and west by the present day Missouri River Valley. The northern and eastern extents of the field are defined by pre-glacial channels that have subsequently been modified by glacial and interglacial activity. The valley to the east is incised by a glacial meltwater channel (Coal Lake Coulee). The valley bisecting the reserve, whose surface is now occupied by the Weller Slough Complex, appears to have been a main tributary of the pre-glacial Knife River. This bisecting valley divides the reserve into two coalfields, locally referred to as the Underwood Coal Field to the north and the Riverdale Coal Field to the south.

The Bullion Creek Formation (Paleocene) underlies much of the reserve area. The Sentinel Butte Formation (Paleocene) conformably overlies the Bullion Creek Formation. Lithologically, the two formations are very similar. Interbedded silts and clays that occur in beds that range in thickness from less than one (1) foot to tens of feet make up about sixty) to eighty percent of the sediment of the Bullion Creek and Sentinel Butte Formations. From fifteen
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SEC S-K 1300 Technical Report Summary
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to thirty-five percent of the sediment making up these formations consists of silty, fine-grained to medium-grained sand in beds that range in thickness from one-half (½) to one hundred feet. Lignite is a minor constituent, generally comprising less than five percent of the formations. The lignite occurs in beds ranging in thickness from less than one-tenth) foot to about fifteen feet locally. The Coleharbor Formation (Pleistocene) unconformably overlies the Sentinel Butte and Bullion Creek Formations. It includes all of the unconsolidated sediments resulting from deposition during glacial and interglacial periods. Lithologic types include gravel, sand, silt, clay, and till. The Oahe Formation (Holocene) occurs as a thin veneer of eolian silt sized sediment that blankets upland surfaces in the area. The modified glacial channels that delineate the reserve limits are in-filled with sediments of the Coleharbor Formation. The channel fill systems contain a complex of interbedded glaciofluvial gravels, sands, silts, and clays overlain by till. The coarser gravel and sand beds are generally limited to near the bottom of the channel fill.

The general stratigraphic sequence in the upland portions of the reserve area (Sentinel Butte Formation) consists of till, silty sands and clayey silts, main Hagel (Hagel A) lignite bed, silty clay, lower lignite of the Hagel lignite interval (Hagel B), and silty clays. Both the Hagel A Bed and the Hagel B Bed are split by clay partings in portions of the reserve; although the two beds are not split in the same areas. Where the beds have partings, the splits are refered to as Hagel A1, Hagel A2, Hagel B1, and Hagel B2. There are thinner beds of lignite above the Hagel bed in some areas. These thin lignite beds are part of the Kinneman Creek seam. The Kinneman Creek in most areas is thin, very weathered, and very high in ash. In areas where it is mineable it can reach up to 3.5 feet thick and is lower in ash. Where the Kinneman Creek is parted, it is refered to as the Upper Kinneman Creek and Lower Kinneman Creek.

Near the contact of the Sentinel Butte and Bullion Creek Formations in a complex of sands and thin (less than one (1) foot ) lignite beds locally referred to as the C Sand and C Seam. As in the Sentinel Butte, the Bullion Creek Formation consists of till, silty sands and clayey silts, main Tavis Creek lignite bed, silty clay, and silty clays. The Tavis Creek Bed is split by a clay parting in portions of the reserve. Where the bed has a parting, the splits are referred to as Upper Tavis Creek and Lower Tavis Creek. There are thin lignite beds immediately above and/or below the Tavis Creek in many areas. The first of these thinner seams below the Tavis Creek bed is the Coal Lake Coulee seam. The Coal Lake Coulee seam parted in areas of the reserve and the splits are refered to as the Upper Coal Lake Coulee and the Lower Coal Lake Coulee. Below the Coal Lake Coulee seam, there is a repeating sequence of silty to sand clays with generally thin lignite beds.

Geologic cross-sections A-A', B-B', C-C', M-M', and N-N' (Figure 6.3 in the Supplemental Figures Attachment through the Underwood Reserve, were constructed using data compiled from existing drill holes to illustrate the subsurface relationships of the above mentioned stratigraphic units. The compiled data is based on the drill hole data but is in the form of 3D grid files (a geologic model)

Geologic cross-sections A-A', B-B', C-C', D-D', E-E', F-F' and G-G' (Figure 6.4 in the Supplemental Figures Attachment) through the Riverdale Reserve, were constructed using data compiled from existing drill holes to illustrate the subsurface relationships of the above mentioned stratigraphic units. The compiled data is based on the drill hole data but is in the form of 3D grid files (a geologic model).
7.0    EXPLORATION

No exploration work other than drilling and associated geophysical logging has been conducted at the Falkirk Mine. Geophysical logging is discussed with drilling in Section 7.1 of this TRS.
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SEC S-K 1300 Technical Report Summary
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7.1 DRILLING EXPLORATION
Data collected during drilling exploration programs at the Falkirk Mine is the sole information available for modeling the lignite deposit for the determination of Mineral Resources. Following coal industry standards, the sampling method used by the Falkirk Mine for modeling quality of the lignite deposit is exclusively core drilling. The Falkirk Mine lignite deposits are evaluated on a seam by seam basis. Drilling exploration data including geologic lithologies, qualities, and hole locations have been compiled in an electronic, geologic database. The information below summarizes the related drilling records.
7.1.1 DRILLING METHODS
Drilling exploration programs conducted at the Falkirk Mine have comprised largely of rotary air/mist or mud drilling methods. For the purpose of this discussion, senior geologist and field geologist refer to qualified representatives of Falkirk and/or NACoal. Historically, Falkirk has contracted independent drilling services and geophysical logging services. Drill holes completed at the Falkirk Mine are vertical in orientation and have been broken into four categories which are described below. A drill hole collar location map for the Falkirk Mine is presented in Figure 7.1 in the Supplemental Figures Attachment
Exploratory drill holes, also referred to as pilot holes, typically range in size 5.0 inches (outer hole diameter, od) and terminate at a minimum of 12-feet below the lowest targeted lignite seam as specified by the senior geologist to allow for proper geophysical logging. Cuttings are recovered by the contracted driller on a 5-foot interval and are described by the field or senior geologist. All pilot holes are geophyscially logged for natural gamma, density, caliper, and resistivity responses.
Coal core holes to collect samples for quality assessment are advanced next to pilot holes at specified locations. Core holes are typically 5.6-inches (outer diameter, od) to the point where coring starts, then through coring 4.6-inches (od) with a respective sample diameter of 3.0-inches (od). Samples are collected with a split double core barrel. Coring intervals are determined by the field geologist and reviewed by the senior geologist based on the pilot hole’s geophysical log and cuttings descriptions. Core holes terminate one to two feet below the lowest targeted lignite seam. 90-percent coal core recovery is required such that the field or senior geologist logging the sample can clearly define the roof and floor of the lignite seam (see Section 8.0 for discussion on sample preparation). It is standard practice to only geophysically log the adjacent pilot hole because of its close proximity to the core hole. In unique cases, the core hole may be geophysical logged if there appears to be a discrpency in thickness or elevation between the rotary hole and core hole. with the field logs and quality data for determination of lithologic intervals to be modeled.
Overburden core holes are drilled following the same protocol to the coal cores as described above with the addition of collecting overburden, interburden and underburden samples at five foot intervals. These samples bagged and sent to the lab for textural and geochemacial in addition to lignite, which are shipped to a separate soil lab for geochemical analysis. Data specific to the coal cores collected during these overburden core sampling programs have been reviewed by the QP for inclusion in the geological model.
The fourth, and final, category of drill holes comprise of geotechnical holes and monitoring wells which have been geophysically logged and extend through multiple coal seams. These drill holes follow the parameters outlined for pilot holes and available data has been reviewed by the QP.
7.1.2 GENERAL DRILLING PROCEDURES
Details may vary with each exploration program, however general procedures for drilling at Falkirk Mine include:
–Identification of land control; acquire drilling leases for properties not owned or previously leased.
–Site preparation.
–Rotary wash drilling by an independent drilling contractor; cuttings are collected every 5-feet to final depth.
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–Field geologist logs description of cuttings including depth, texture, general color.
–Independent contractor geophysically logs drill hole for natural gamma, density, caliper, and resistivity.
–Field geologist reviews geophysical log.
–Hole determined complete, and abandoned by independent drilling contractor in accordance with regulatory requirements.
–Survey drill hole collar location.

To continue with a coal core hole:
–Coring intervals determined by field or senior geologist from pilot hole geophysical log.
–Coal core drilling by an independent drilling contractor.
–Core extracted from barrel by independent drilling contractor and placed in logging tray.
–Field geologist cleans core sample of drilling mud, measures the core length and identifies the roof and floor. If recovery is less than 90-percent, independent drilling contractor may attempt to retrieve the remaining core from the current hole. If no success, the core run interval will be “re-cored” as an additional core hole.
–Field geologist logs the core including depths, fractures, texture, color, and characteristics of the lignite.
–Field geologist double bags and double tags sample.
–Once all intervals are cored, independent contractor geophysically logs drill hole.
–Field geologist reviews geophysical log.
–Hole determined complete, and abandoned by independent drilling contractor in accordance with regulatory requirements.
–Survey drill hole collar location.

Additional drilling tasks include:
–Maintaining daily drilling report and record of collected samples.
–Proper storage of lignite core samples in secure location of the mine office and transfer to the warehouse to prepare for shipment to laboratory.

7.1.3 DRILLING EXPLORATION PROGRAMS
As previously discussed in Section 5.2 of this document, numerous drilling exploration programs have been conducted at the Falkirk Mine. Over 5,400 exploration holes have been drilled. Approximately 2,100 of those holes were sampled for quality assessment.
As a whole, Falkirk plans exploration activities to attain an average 1,320-foot drilling density for the ten-year projection ahead of active mining operations. Physical constraints such as stream buffers can affect the final drilling density. This spacing allows operations to optimize seam blending efforts to ship a steady fuel quality to the power plant. It should be noted for the purpose of Mineral Resource estimations and Life of Mine (LOM) projections, the QP has determined a high to moderate level of confidence in a minimum drill hole spacing of 1,320-feet. This confidence comes from the continuity of the lignite seams including both lithologic and quality characteristics, as well as the ability to compare modeled seam projections to active and historical mining operations.


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SEC S-K 1300 Technical Report Summary
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7.2 HYDROGEOLOGIC CHARACTERIZATION
7.2.1 GROUNDWATER STUDIES
Falkirk is conducting ground water monitoring over an extensive area. A Ground Water Monitoring Plan (GWMP) was developed for the Underwood and Riverdale Coal fields and implemented at the Falkirk Mine is intended to fulfill the requirements of North Dakota Administrative Code sections 69-05.2-09-12 and 69-05.2-16-14. The purpose behind the design and implementation of the ground water monitoring plan is threefold; investigate and quantify the pre-mining hydrologic conditions of permitted and adjacent areas, monitor impacts on the ground water hydrology of the area due to surface mining operations and climatic conditions, and monitor and quantify post-mining ground water conditions. A sustained program of ground water data collection also serves to substantiate projected impacts to the hydrology of the permit area as outlined in the probable hydrologic consequences section of each permit application.
The current monitoring well inventory for the Falkirk Mine is listed in Section 2.2 (NAFK-8405, NAFK-8705, NAFK-9503 and NAFK-9601) of the Riverdale and Underwood permits, Well Inventory and Monitoring Schedule. This inventory includes active, inactive, and destroyed monitoring wells. Section 2.2 (NAFK-8405, NAFK-8705, NAFK-9503 and NAFK-9601) also lists the frequency at which water levels and water quality samples are taken. In addition to the monitoring schedule, the Completion Details of Monitoring Wells lists the location of the well, top of casing and ground surface elevations, depths to the top and bottom of the well screen, and the stratum in which the monitoring well is located. All available monitoring well installation and construction information is also contained in 2.2 (NAFK-8405, NAFK-8705, NAFK-9503 and NAFK-9601). Information is included for active, inactive, and destroyed wells. As required by NDAC 69-05.2-08-06(1)(d), available lithologic logs, geophysical logs, well construction reports and diagrams, and well completion reports are presented.
Water levels are reported to the North Dakota Public Service Commission quarterly, within 30 days following the close of each quarter. In the event that access to a monitoring well is denied throughout a quarter due to persistent climatic conditions or circumstances beyond Falkirk's control, then documentation to this effect will be submitted with the quarterly monitoring report.
Water quality samples are analyzed, at a minimum, for the parameters required by NDAC 69-05.2-08-06(1)(e). Sample results will be reported to the North Dakota Public Service Commission (NDPSC) annually within 30 days following the fourth calendar quarter. Wells with adequate water production will be sampled after purging, at a minimum, the volume of stale water calculated to exist in the well, or when the water’s measured parameters for pH and electrical conductivity have reached stabilization. Low producing wells will be purged, allowed to recover, and sampled within twenty-four hours of purging. Wells with insufficient water volume to allow for collection of a representative sample will be documented to that effect in the annual groundwater quality report, in addition to any other condition that may prevent a well from being sampled.
The post-mining monitoring well network consists of wells existing in undisturbed areas and wells installed in reclaimed areas to monitor the quality and elevation of groundwater flowing into and out of the reclaimed spoils. Installation of reclamation monitoring wells in reclaimed areas will be accomplished after SPGM respread, preferably after the establishment of a viable vegetative cover. Generally, reclamation monitoring wells will be placed in the vicinity of pre-mining well sites with screened intervals placed in the same strata where possible. The replacement of wells at pre-mining well sites will facilitate pre- and post-mining hydrogeologic comparisons. The reclamation well installations will concentrate on screening the base of the spoils, with additional wells placed in the next lower aquifer. Information from these initial well installations will determine the need for additional installations.
Locations of destroyed and existing ground water monitoring wells, along with certified domestic wells and springs are shown on Figure 7.2 in the Supplemental Figures Attachment, Groundwater Map excerpted from Falkirks’s Groundwater Monitoring Plan. Many of the destroyed wells were once part of the monitoring program and part of the baseline aquifer testing, but were destroyed due to mining operations or due to being no longer needed.
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The major hydrostratigraphic units in the study area consist of glacial till (pebble loam) and glaciofluvial sands and gravels of the Coleharbor Formation; Hagel A Lignite bed (upper split of the Hagel bed), the Hagel B Lignite bed (lower split of the Hagel bed), and the C sand (a sandy-silty zone of stratum below the Hagel B bed) of the Sentinel Butte Formation; and the Tavis Creek Lignite bed, the Coal Lake Coulee Lignite, and the Hensler sand of the Bullion Creek Formation. Above the Hagel bed is a carbonaceous unit that correlates to the Kinneman Creek Lignite bed. Over most of the study area, this unit is primarily carbonaceous clay with thin interbedded lenses of lignite. Locally, the lignite does develop into the dominant lithology and may act as a local aquifer. Because of its usually shallow depth, the Kinneman Creek bed is usually weathered. Within the zone of the C sand there is usually one and sometime several, thin (less than one foot thick) lignite beds locally referred to as the C bed which we currently refer to as the C seam. Below the Tavis Creek bed are additional lignite beds. The first two below the Tavis Creek bed are named the Coal Lake Coulee bed and the Weller Slough bed. There are also sand units below these beds, the most significant being the Hensler sand which lies beneath the Coal lake Coulee bed Strata lying above the Hagel bed are referred to as the Kinneman Creek Interval. Those underlying the Hagel bed but above the Tavis Creek bed are referred to as the Hagel Interval.
Ground water recharge from surface infiltration occurs because of snowmelt and rainfall. Prairie potholes and depressions where surface water accumulates enhance the mechanisms of infiltration into the groundwater system. The quantity of recharge is determined by vertical hydraulic conductivity of the soils, and the depth of the water table. However, the significant aerial extent of the recharge zone is probably the most important factor in determining the volume of water infiltration into the aquifers. Moran and Cherry (1978), in studies performed in the Underwood Coal Field located just north of the Riverdale Coal Field estimated the annual ground water recharge rate for this area of North Dakota to be between 0.86 inches to 1.32 inches. These values of recharge apply to the zones of recharge and cannot be taken as distributed over all of the area. Average aerial depth of ground water recharge measured by Cherry in 1979 rate over a 150-km2 study area was on the order of 1.0 to 4.7 inches per year. The spring of 1979 was the wettest spring of the decade of the 1970's, so the values of recharge rate for 1979 are probably greater than the long-term, average ground water recharge rate (Rehm, et. al. 1980). Geohydrology of the Coleharbor Formation The Coleharbor Formation (Pleistocene) is the shallowest aquifer in the area. It unconformably overlies the Sentinel Butte Formation and includes all of the unconsolidated sediments resulting from deposition during glacial and interglacial periods. Over most of the area, the Coleharbor is a thin formation that locally thickens where it fills valleys in the buried topography. The modified glacial channels that delineate the mining limits north, east, and south of the permit area are in-filled with sediments of the Coleharbor Formation. The channel fill systems contain a complex of interbedded glaciofluvial gravels, sands, silts, and clays. The coarser gravel and sand beds are generally limited to near the bottom of the channel fill.
Groundwater in the Coleharbor Formation accumulates in the discontinuous sand bodies surrounded by clayey sediments. These sand bodies individually can be described as perched aquifers; the sand bodies lack lateral continuity and are generally of limited aerial extent. Consequently, water wells in the Coleharbor Formation typically have very low yields and capacity. They are also very sensitive to changes in precipitation and resultant recharge. Wells in the Coleharbor Formation will react relatively quickly to changes in precipitation: If it rains, the wells produce well, in a drought, the wells have reduced production or even “go dry”. Hydraulic conductivity values from single well response tests average 8.6 feet per day for the Coleharbor channel fill units in the study area (Groenewold, et. al., 1979). The average hydraulic conductivity of the glacial till test is 0.3 feet per day. Some tests indicate that the hydraulic conductivity value of the glacial till could be as low as 10-5 to 10-7 feet per day (Groenewold, et. al., 1979). Pumping tests performed in the central portion of McLean County indicate hydraulic conductivity values of 104 to 6,739 feet per day for the sand and gravel units of the channel fill aquifers (Klausing, 1974). Storage coefficients of the channel fill aquifers obtained from Klausing’s pumping tests range from 0.0001 to 0.00045. One pumping test yielded a specific yield of 0.14. This indicates that the lower sand and gravel strata found in the channel fills are normally confined by the overlying silts and clays.
Stratigraphically, the Hagel A bed is the highest, significant aquifer in the study area. The seam has local undulations that cause variations in the character of this aquifer. In some areas, the Hagel A bed is confined, but in other areas it is under water table conditions. The potentiometric map of the Hagel A bed suggests that water in this aquifer flows radially from surface recharge areas towards the croplines along the Missouri River Valley, the Weller
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Slough Trench, and tributaries of the Coal Lake Coulee. Discharge from the Hagel A bed along some outcrops and near surface subcrops is in the form of springs.
Results from single well response tests completed in Hagel A bed are presented in Section 2.2 (NAFK-8405, NAFK-8705, NAFK-9503 and NAFK-9601).The measured hydraulic conductivity of the Hagel A bed ranges from 0.05 feet per day to 4.6 feet per day. However, some monitoring wells exhibited a hydraulic conductivity that was too high to be measured with response tests.
The Hagel B bed lies below the Hagel A bed. The Hagel B bed is in direct hydraulic connection with the Hagel A bed in a few places. A few areas of the Hagel B bed are unsaturated to dry, but is generally confined. Potentiometric levels of the Hagel B bed are normally lower than those of the Hagel A bed except in a few areas where they are in equilibrium. This difference induces leakage from the Hagel A bed to the Hagel B bed.
The hydraulic conductivity measured in response tests Section 2.2 (NAFK-8405, NAFK-8705, NAFK-9503 and NAFK-9601) ranges from less than 0.01 feet per day to 3.45 feet per day Section 2.2 (NAFK-8405, NAFK-8705, NAFK-9503 and NAFK-9601). Recharge of the Hagel B bed is primarily leakage from the Hagel A bed. Groundwater flow in the Hagel B bed is from the high potentiometric areas to discharge areas along the croplines of the coal seam along the Missouri River Valley, the Weller Slough Trench, and tributaries of the Coal Lake Coulee. Some discharge along crops is in the form of springs.
The C sand is the first aquifer below the Hagel B bed. The C sand is an interval of sandy silts to silty sands; it also typically includes one or more thin lignite beds (locally referred to as the C seam). The C sand is a confined aquifer that lies 20 to 30 feet below the Hagel B bed and 60 feet above the Tavis Creek bed.
The general flow direction in the C sand is from the high potentiometric areas towards the Weller Slough Trench, the Missouri River Valley, and the trench of Coal Lake Coulee. Recharge of the C sand is primarily through leakage from the Hagel B bed. The hydraulic conductivity of the C sand, measured in response tests, ranges from less than 0.01 feet per day to 30 feet per day.
The Tavis Creek bed is a lignite bed that lies 60 to 100 feet below the C sand, under a layer of Sentinel Butte Formation clay. The flow in the Tavis Creek bed takes place under confined conditions. Flow in the Tavis Creek bed is from the Weller Slough toward the Missouri River. Recharge of this aquifer appears to be primarily from lateral flow from North of the study area and from Weller Slough and associated filled trench drainages. Some leakage may occur from overlying aquifers. However, the significant thickness of the overlying clays suggests that this leakage ought to be relatively small. The potentiometric surface of the Tavis Creek bed is lower than that of the C sand. The Weller Slough Trench is a source of recharge for the Tavis Creek bed. It appears to have been a main tributary to the pre-glacial valley of the Knife River (Bluemle, 1971). The Weller Slough Trench consists of coarse sediments within the broad depression of the buried channel (Bluemle, 1971). It is hydraulically connected with Lake Sakakawea.
Recharge of the Weller Slough Trench aquifer is from precipitation, discharge from shallow aquifers, and Lake Sakakawea (Klausing, 1974). The bottom of the Weller Slough Trench aquifer reaches 306 feet in depth in well NDSWC 4034 (Klausing, 1974). At this location, the thickness of the coarse sediments is sixteen feet (Klausing, 1971). Pumping tests performed in the central portion of McLean County indicate hydraulic conductivity values of 104 to 6,739 feet per day for the sand and gravel units of the channel fill aquifers (Klausing, 1974). Storage coefficients of the channel fill aquifers obtained from pumping tests range from 0.0001 to 0.00045. One pumping test yielded a specific yield of 0.14. This indicates that the lower sand and gravel strata found in the channel fills are normally confined by the overlying silts and clays. Single well response tests performed in the Tavis Creek bed yielded hydraulic conductivity values of less than 0.01 feet per day to 18 feet per day.
The Coal Lake Coulee lignite bed is under confined conditions located between 15 and 30 feet below the Tavis Creek bed. Flow direction is similar to the Tavis Creek bed and is from the Weller Slough toward the Missouri River.
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The main source of recharge for the Coal Lake Coulee bed is from the previously discussed Weller Sough Trench and leakage from the overlying Tavis Creek bed.
The hydraulic conductivity of the Coal Lake Coulee bed, measured in response tests ranges from less than 0.01 feet per day to .32 feet per day.
The Hensler sand is the sand unit monitored as the first aquifer below the Coal Lake Coulee bed. It is part of numerous discontinuous sand units within the Bullion Creek Formation that make up an “aquifer zone” rather than a distinct aquifer (Groenewold, et. al., 1979). The Hensler sand is between just a few feet to more than 30 feet below the Coal Lake Coulee. The flow in the Hensler sand takes place under confined conditions and is from the Weller Slough toward the Missouri River
Recharge of this aquifer appears to be primarily from lateral flow from north of the study area and from leakage from overlying aquifers. The potentiometric surface of the Hensler sand is generally lower than that of the Coal Lake Coulee bed. Single well response tests performed in the Hensler sand yielded hydraulic conductivity values of less than 0.03 feet per day to .25 feet per day.
The Hagel A bed water has calcium-magnesium and sodium as dominant cations. Bicarbonate and sulfate anions are present in the water. The water quality data for the Hagel A bed shows that there is not a predominant type of water. Total dissolved solids range from 777 to 4,838 mg/l and averages 2,082 mg/l. The water is generally very hard.
Water of the Hagel B bed exhibits similar characteristics as the Hagel A bed water. Calcium and magnesium cations are slightly less prevalent, with sodium being the dominant cation in over half of the samples. Dominant bicarbonate anion is more common than dominant sulfate anion type. The water quality data for the Hagel B bed indicates that water type of this aquifer can be quite variable. Total dissolved solids range from 855 to 3,280 mg/l and averages 1,897 mg/l. Water hardness varies from very hard to soft, but is mostly very hard.
The C sand water has a predominant sodium bicarbonate type but sodium sulfate water can also be detected. Calcium and magnesium are less predominant. Total dissolved solids range from 642 mg/l to 3,733 mg/l and averages 1,773 mg/l. Hardness varies from very hard to soft, but is generally soft.
Water of the Tavis Creek bed shows some tendency to the sodium bicarbonate type. However, predominance of the calcium and magnesium cations, and sulfate and bicarbonate anions is observed in some samples. Total dissolved solids are between 450 mg/l and 5,540 mg/l and averages 1,882 mg/l. The water is soft to hard.
The Coal Lake Coulee bed water shows a tendency to be a sodium bicarbonate-sodium sulfate type, but also has major concentrations of calcium and magnesium. Total dissolved solids range from 1550 mg/l to 5,452 mg/l and averages 2,674 mg/l. The water is generally very hard.
The Hensler sand has a predominant sodium bicarbonate type with major concentrations of sulfate. Calcium and magnesium are less predominant. Total dissolved solids range from 743 mg/l to 2,668 mg/l and averages 1,250 mg/l. The water is generally moderately hard, but can range from very soft to very hard.

7.2.2 SURFACE WATER STUDIES
Background surface water studies and data has been collected since 1981 to present on and adjacent to Falkirk permitted lands. Baseline flow and quality data included ephemeral and intermittent streams and quality and elevation data included permanent wetlands. Water quality testing of the samples was conducted by Minnesota Valley Testing Inc., for total suspended solids, total dissolved solids, pH, total iron, manganese, calcium, sodium, magnesium, electrical conductivity, alkalinity (carbonate and bicarbonate), sulfate, and sodium adsorption ratio Baseline flow quality measurements were performed by Falkirk environmental staff using Stevens recorder gauges and Solinst level-loggers (data logging transducers). Using water level data from the gauges and the transducers, a hydrograph was created to determine the flow rate from a stage-discharge curve. Bentley FlowMaster software is used to perform the hydraulic calculations for the stage-discharge curves.
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Quantification of the surface water probable hydrologic consequences was conducted using the SCS method and the Corps of Engineers’ HEC-1 and HEC-HMS hydrology software. HEC-HMS software was developed in 1995 by the U.S. Army Corps of Engineers Hydrologic Engineering Center and is a Windows-based upgrade to the HEC-1 program. Both software computes the volume of runoff and peak discharges for a given storm event by entering watershed parameters such as the watershed area, weighted curve number, and the time of concentration. These programs will also route flows through a stream channel, culvert, and reservoir, and will combine routed hydrographs to compute peak discharges, time of peak discharges, routed hydrographs, and total runoff volumes. The results of the modeling were used to develop the surface baseline conditions for the permitted areas.
7.3 EARLY GEOTECHNICAL STUDIES
Geotechnical soil drilling has been carried out at the property during several investigations. Studies have been implemented prior to entering a new mining area and periodically throughout the life of the mine when questions arise that warrant further investigation or geotechnical confirmation. The most notable studies concerning geotechnical properties are described below.
In 1976 the intitial Ground Stability Study of the Underwood Coal Field was conducted and reported by Robert L. Zook – Soils / Geological Engieer for the initial mine start up. This was followed in 1981 with a study of the same coal field concentrating on an additional minining unit (Mine Area B) by Barry L. Sutphin – Geotechnical Engineer.
Additional studies for spoil stability and opening the additional mining area in the Riverdale field where completed by J. Lyall Workman, P.E. (Calder & Workman, Inc.) in 1994 and 1995 respectively.
Studies were completed in 1996 and 1998 for moving the 8750 dragline to the Island mining area and the slope stability of that mine area (also by Calder & Workman, Inc.)
In 2009 (Calder & Workman, Inc.), 2010 and 2013 (Barr Engineering) Stability Analyses were completed for highwall stability, site specific clay properties and general spoil stability for both mine areas.
Barr Engineering also completed analysis and impacts of highwall failures and a root cause analysis of the failure around our 8750 dragline in 2015.
To conduct the geotechnical analysis required for the above studies soil data was collected during field investigations and laboratory testing programs. Both conventional continuous overburden coring and cone penetration testing were completed as part of the field investigation.

Laboratory testing included:
•Index properties
◦water content
◦Atterberg Limits
◦grain size distribution
◦dry unit weight
•Shear strength testing
◦uniaxial compression strength
◦direct shear testing
◦undrained triaxial compression testing with pore pressure measurements


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The slope stability analysis was conducted using the SLOPE/w module of GeoStudio software package.
The typical laboratory tests performed in the investigations described above were carried out in accordance with the relevant American Society for Testing and Materials (ASTM) standards at independent certified laboratories. The laboratory testing methods completed to determine the geotechnical soil parameters are appropriate for the purpose of detailed geotechnical design.
All of these studies have been used to incorporate best practices and supporting data for our ground control plan that is submitted to MSHA. Guidance for such things as our digging method, depth of prebench highwalls, thickness of and angle of dragline highwalls, spoil height and even the best road building materials have all been gleaned from the information provided in the aforementioned geotechnical studies. Figures 7.3 shows the most recent geotechnical borings completed during a mine-wide study in the Underwood mine area. Figure 7.4 shows the most recent geotechnical boring completed during a mine-wide study in the Riverdale mine area.
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image_7b.jpg
Figure 7.3 Underwood Mine Area Geotechnical Borings
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image_8b.jpg
Figure 7.4 Riverdale Mine Area Geotechnical Borings
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8.0     SAMPLE PREPARATION, ANALYSES, AND SECURITY
8.1 SAMPLE COLLECTION AND SHIPMENT
The Falkirk Mine lignite deposits are evaluated on a seam by seam basis. As a standard in the coal industry, individual sections of lignite are bagged and sent to the third-party coal testing laboratory. The procedures at the Falkirk Mine for sample collection are summarized below.
Core runs are specified by the senior and/or field geologist by referencing the geophysical log of the pilot hole. Most of the time a single 10-foot core run can typically capture a full lignite seam. In situations where a coal seam, roof and floor are thicker than 10 feet, a 15-foot core barrel is used or multiple runs with the 10-foot barrel is utilized. Once a specified core run is brought to the surface, the field geologist observes the drillers extract the lignite sample from the double barrel core to ensure the integrity of the sample is maintained, and to verify the top and the bottom of the core run. The core sample is transferred from the core barrel directly to a aluminum trough that contains a fix measureing tape. If there is excess drilling mud from on the core sample the field geologist washes with water, verifies the roof and floor of the lignite core is present and checks the expected coal seam thickness referenced from the pilot hole’s geophysical log to determine coal core recovery. If 90-percent recovery cannot be verified, the driller may attempt to retrieve the remainder of the lignite core run from the current hole. If no successful attempt is made to recover the remaining lignite, the driller must recore the lost interval in a new adjacent core hole.
Upon verifying full recovery of the core run, the field geologist succinctly, but thoroughly logs the lignite run. A typical log describes:
–“To” and “from” depths of burdens and lignite;
–Joints and fractures at specified depths;
–Characteristics of burden above and below the lignite core;
–Roof and floor of lignite seam (i.e. sharp or gradational);
–Presence of pyrite or petrified wood;
–Observations of clay or sands imbedded in the lignite core; and
–Any other prominent characteristics.

After the field geologist describes the core run, the entire lignite section is double bagged and double tagged. Tags include the date, mine identifier, hole ID, seam ID, and “to” and “from” intervals. Double bagging preserves the moisture of the sample, and double tagging safeguards the identification of the sample from the field through transportation to the third-party laboratory.
Lignite cores may be split into multiple samples for the following reasons:
–Prominent roof, floors, or partings within a continuous seam;
–If visually it appears the quality of the coal good change

Laboratory results for split cores are reviewed by the senior geologist prior to inclusion in the geologic database for modeling. Quality results for all split samples to identify composition concentrations are identified as a continuous seam in the geologic database. The weighted average is computed in the modeling process. Roofs, floors and partings that meet a minable quality are identified as part of the associated seam, and are modeled in the same manner as the split samples described previously. Roofs, floors and partings that do not meet a minable quality are included in the geologic database as a point of record, but are not modeled with a seam identifier, and thus the quality of those splits is not weighted with the associated seam. Total core runs are shipped for analysis following industry standards, thus split samples in the context of a retained sample are not stored at the Falkirk Mine. Lignites tend to be high moisture coals which oxidize rapidly and do not have a long shelf life once removed from the ground. If core splits were retained, they would not be representative of in-situ coal properties over time.
After samples are bagged, they are stored in a dry, shaded area, typically the field geologist’s truck, until the geologist returns to the mine office. Core samples are then securely stored in the senior geologist’s office until
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transferred to the warehouse to be shipped to the third-party laboratory. The Falirk Mine office and warehouse is secured with user specified fob access and camera surveillance. In addition, security officers patrol the property around the clock.
Prior to shipping the samples, the senior geologist reviews each sample against the field records and the chain-of-custody (COC). The date, mine identifier, hole ID, seam ID, and “to” and “from” intervals are verified. In addition to the COC included in the physical shipping container, a copy is emailed to the laboratory manager to notify that a shipment is in route. Copies of the COC forms for coal cores shipped from 2015 through 2021 were available for the QP to review. Coal core samples are shipped to the third-party laboratory via insured freight with tracking information.
8.2 SAMPLE PREPARATION AND ANALYSIS
Minnesota Valley Testing Laboratories, Inc. (MVTL) in Bismarck, North Dakota is the third-party laboratory Falkirk Mine uses for coal core analyses. MVTL has provided coal quality analysis following ASTM standards for over 40 years.
Minimum analyses of coal cores include short proximate (moisture, ash, BTU/lb, sulfur, sodium, calcium), and forms of sulfur. These parameters are the primary quality inputs used to model the Falkirk Mine lignite deposit. Additional analyses of coal cores may include full proximate, ultimate, mineral analysis of ash, trace elements, and ash fusion.
MVTL is in operation Monday through Friday from 8 am to 5 pm. The building is kept secure, and all doors remain locked throughout the day, except the main customer entrance where visitors have to check in and check out. No access is allowed to the laboratory without an escort. During non-operational hours the building is kept locked.

8.3 ASTM Standards 

Table 8.1 lists the ASTM standards that MVTL references for various coal quality analyses.

Specific Tests and/or Properties Measured 
Specification, Standard, Method, or Test Technique 
Items, Materials or Product Tested 
Key Equipment or Technology 
% AshASTM D7582 Coal  TGA 
Calorific Value ASTM D5865 Coal  Calorimeter 
Carbon, Hydrogen, and Nitrogen ASTM D5373 Coal  Elemental Analyzer 
ChlorineASTM D6721Coal  Micro-coulometric Analyzer
Fusibility of Ash ASTM D1857 Coal  Furnace 
Mercury ASTM D6722 Coal  Direct Combustion Analysis 
Mineral Analysis of AshASTM D3682/D5016Coal  ICP-OES, FIA, Furnace
Oven Dry MoistureASTM D7582 Coal  TGA 
Air Dry MoistureASTM D3302Coal  Air Dry Ovens 
Preparing Samples for Analysis ASTM D2013Coal  Crusher / Pulverizer 
Sulfur (Total) ASTM D4239 Coal  Furnace 
Sulfur FormsASTM D2492Coal  Gravimetric, AA
Trace MetalsASTM D6357 ModifiedCoal  Microwave Digestion, ICP-MS & ICP-OES
Volatile Matter ASTM D7582 Coal  TGA 

Table 8.1. List of ASTM standards for MVTL.
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8.4 SAFETY

Fire extinguishers, eye wash stations, and safety showers are accessible in the lab. Safety glasses are required throughout the lab. Hearing protection and dust masks are also required in the prep room.
Other protective equipment is available to the staff for use as needed. SDS sheets are maintained in the lab. The building is equipped with a fire alarm system and annual fire and tornado drills are conducted. MVTL maintains a business continuity and disaster plan to cover various incidents of business disruption.

8.5 ROUND ROBIN PROGRAMS
MVTL participates in round-robin testing programs with other laboratories to ensure result accuracy. MVTL participates in an Interlab Coal Round Robin Program monthly. In 2020, MVTL also participated in a lignite (coal) specific round robin program with NACoal including 8 independent laboratories, one of which was MVTL, that were used by various NACoal mine locations. The round robin consisted of four samples labeled 2001, 2002, 2003, and 2004. Two samples were sourced from Red Hills Mine and two samples were sourced from another NACoal mine, Coyote Creek Mine, located in North Dakota. The two locations provided a range of samples with variability in moisture, ash, sulfur and sodium. The labs participating in the round robin were provided 8-mesh splits and dried, 60-mesh splits of all 4 samples. The general results are summarized in Figure 8.1. MVTL is labeled “Laboratory #5”.
image_9c.jpg
Figure 8.1. NACoal 2020 Round Robin Program Summary. (NACoal, 2020)

8.6 BALANCES
All balances are calibrated and certified annually by a third-party calibration service. Balances are verified daily using certified weights.
8.7 SAMPLE RECEIVING AND STORAGE ROOM
The sample receiving and storage room is climate controlled (ventilated, AC, and heat). Samples are received through various couriers, directly from clients, or from the MVTL Field Service division. The samples are cross referenced with a chain of custody form or other client paperwork and then are logged into the Laboratory
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Information Management System (LIMS). Each sample is given a unique lab number used for tracking during analysis and throughout the reporting process.
Samples are stored until they are ready to be crushed in the prep room. There is a slight potential for moisture loss during this storage period. Falkirk acknowledges this potential and, as such, double bags samples in the field to preserve as much in-situ moisture as possible.
Retained pulverized and air-dried 60-mesh samples are also stored in this room. These samples can be reanalyzed within 6 months for selective parameters. MVTL contacts and verifies with the client prior to disposal of retains.
8.8 PREP ROOM
The prep room is a temperature-controlled room (AC and Heat) accessible from the sample receiving and storage room. Within the prep room, samples are crushed to 8-mesh using a crusher and are reduced in volume using a riffler. Two different sized crushers and rifflers are available depending on sample size. Compressed air is used to clean the crusher and riffler after each sample to mitigate contamination.
A riffled split of 8-mesh coal is placed on a sample tray and weighed. The weights are sent electronically to LIMS for use in the moisture calculation. The tray is placed in an air dry oven and dried overnight. The temperature of the air dry ovens is monitored and recorded daily. The temperature monitoring devices are verified annually. Another riffled split is sealed in a Ziploc bag and retained. The client is notified prior to disposal of the coal core splits.
Once air-drying is complete, the samples are weighed and again the weights are sent electronically to LIMS. The samples are pulverized to 60-mesh and split using a riffler. Compressed air is used to clean the pulverizer and riffler after each sample. Samples are stored in glass jars for analysis and the splits are retained in whirl-pak bags.
8.9 LABORATORY TESTING
All of the analyses in the laboratory are performed on the 60-mesh sample or ash prepared from it. The samples are mixed by tumbling prior to each analysis. The lab is climate controlled (AC and heat). Coal analysis results are reviewed prior to reporting. The review includes identification of outliers and comparison of results with historical information by site, if available. The analyses are re-analyzed as needed.

8.10 QP STATEMENT ON THE ADEQUACY OF SAMPLE PREPERATION, SECURITY AND ANALYTICAL PROCEEDURES 

For the past several years, the Falkirk Mine has used a formal outline for the process to collect coal samples at the Falkirk Mine. This has provided consistency in core collection from one drilling program to the next has been thoroughly documented. Between thorough records and personal observation of numerous drilling campaings, it is the QP’s opinion that historic coal core collection has remained consistent with industry standards. The process of double bagging and tagging the cores in addition to multiple checkpoints to log samples from field to shipment to the lab further ensures the integrity and security of each sample is maintained. 

Additionally, the QP feels the methodologies used by MVTL are within industry standards for sample preparation, process of sample splitting and reduction, general quality control, and security of samples to ensure that validity and integrity of samples is upheld.