PT.

Billiton Indonesia
MIDPLAZA 2, 3rd Floor
Jl. Jenderal Sudirman Kav 10-11
JAKARTA 10220
INDONESIA

GEOLOGY PROCEDURE PAGE 1 of 16

NUMBER [INSERT NUMBER] JOB No.

DESCRIPTION INDOMET COAL PROJECT

GEOLOGY STANDARD
WELLSITE GEOLOGIST WORK PROCEDURE

OFFICE OF ORIGIN PT. BILLITON INDONESIA G.A.

WRITTEN BY GAMAL JACOB DATE: B.O.M

REVIEWED BY NURUL IKHSAN DATE: SCOPE

TITLE OF REVIEWER GEOLOGY SUPERINTENDENT CONTRACT

STATUS APPROVAL BY PT. BILLITON INDONESIA RESPONSIBLE

MANAGER/ENGINEER

SIGNED DATE REV.

ACCEPTED .......................... .................... .............

(Alpha or Numeric)

ACCEPTED EXCEPT AS NOTED .......................... .................... .............

(Alpha)

REVISE AND RESUBMIT .......................... .................... .............

(Alpha or Numeric)

APPROVAL BY PT. BILLITON INDONESIA RESPONSIBLE MANAGER

(Numeric)

.................................................................................. DATE: ...........................

Rev. Date Description By Chk’d Reviewed PT Billiton

Indonesia
All
1 25/04/09 Reviewed and revised in Bakumpai Meeting room
geos
2 02/07/10 Reviewed and revised NI
 Doc. No.
INDOMET COAL PROJECT Rev A
Geology Standard Procedure Date 02/07/2010
WELLSITE GEOLOGIST WORK PROCEDURE Page 2 of 16

CONTENTS

1.0 PURPOSE............................................................................................ 1

2.0 SCOPE................................................................................................. 1

3.0 REFERENCE ....................................................................................... 1

4.0 DEFINITION......................................................................................... 1
4.1 IMC ..................................................................................................................................... 1
4.2 Shall and Should ................................................................................................................ 1
4.3 DDR.................................................................................................................................... 1
4.4 Drill Hitch ............................................................................................................................ 2
4.5 LAS..................................................................................................................................... 2
4.6 GBIS ................................................................................................................................... 2
4.7 Logcheck ............................................................................................................................ 2
4.8 LOX .................................................................................................................................... 2

5.0 PROCEDURE ...................................................................................... 2

5.1 Introduction......................................................................................................................... 2
5.2 Contract Supervision .......................................................................................................... 2
5.3 Data Collection ................................................................................................................... 4

6.0 DOCUMENTATION ............................................................................. 6

Appendix 1:................................................................................................... 7

Appendix 2:................................................................................................... 8

Appendix 3:................................................................................................... 9

Appendix 4:................................................................................................. 10

Appendix 5:................................................................................................. 11

Appendix 6:................................................................................................. 12

Appendix 7:................................................................................................. 13

Appendix 8:................................................................................................. 14

IMC_EX_P002_SOP_EXPL_Wellsite Geologist Work Procedure.doc 2

 Doc. No. -
INDOMET COAL PROJECT Rev A
Geology Standard Procedure Date 02/07/2010
WELLSITE GEOLOGIST WORK PROCEDURE Page A 1

1.0 PURPOSE
The purpose of this procedure is to define the role and responsibilities of the wellsite
geologist and to describe the activities they are expected to perform in order comply
with BHP Billiton standard practice.

2.0 SCOPE
This procedure is apply to wellsite geologist who works on the data acquisition of
drillhole data in the field and day to day management contract drilling rigs.

3.0 REFERENCE
Procedure: MCP Drill site Procedure Manual, June 2005

Procedure: IMC_EX_P001_SOP_Field Data Naming Standard_V01

Form: IMC_EX_F004_Sample Submission Sheet

Form: IMC_EX_F005_Geotechnical Sample Report Sheet

Form: IMC_EX_F012_Borehole Completion

4.0 DEFINITION
4.1 IMC
This stand for IndoMet Coal Project, name of Coal Exploration Project located in
Central and East Kalimantan that controlled 75% by BHP Billiton and 25% Adaro

4.2 Shall and Should

The word "shall" is to be understood as mandatory and the word "should" as non-
mandatory, advisory or recommended.

4.3 DDR
This stands for Daily Drilling Report (DDR) which is completed by the driller and signed
by the wellsite geologist, ideally on a daily basis, and constitutes a detailed description
of drilling and related activities undertaken during a single day. The DDR is used as a
basis for invoicing and as a record of the number of holes drilled, their identification, the
metres drilled for each hole, the type of drilling performed (e.g. open hole, core, rock
roller, hammer), water cartage and other chargeable activities.

IMC_EX_P002_SOP_EXPL_Wellsite Geologist Work Procedure.doc 1

 Doc. No. -
INDOMET COAL PROJECT Rev A
Geology Standard Procedure Date 02/07/2010
WELLSITE GEOLOGIST WORK PROCEDURE Page A 2

4.4 Drill Hitch

A period of work carried out by contract drillers, which is a block of consecutively
worked days (35 days on, 14 days off).

4.5 LAS
This stands for Log ASCII Standard (LAS), which is the most widely accepted format
used for the transfer of digital well log data from the logging operator to the wellsite
geologist.

4.6 GBIS
A proprietary data storage and retrieval system used in IndoMet Coal Project.

4.7 Logcheck
A proprietary field logging system adopted by IndoMet Coal Project

4.8 LOX
This stands for Line of oxidizing, a procedure to determine coverage area of oxidation
zone.

5.0 PROCEDURE
5.1 Introduction
The wellsite geologist, as PT Billiton Indonesia representative on each drilling rig, is
responsible for the day to day supervision of the terms and conditions of the drilling
contract including matters related to chargeable activities, health and safety and the
environment.

Cost effectiveness is how to minimize drilling expenditure to obtain maximum valuable

technical information without sacrificing the quality of data collected. The wellsite
geologist shall more pay attention to carry out cost effectiveness in the field

The wellsite geologist is regularly responsible for the entry of drillhole data from chip
and core samples into portable computers and sample dispatch to Balikpapan office.
The accurate field recording of drillhole data is critical to the process by which coal
resources are modelled. Eventually, decisions on how and when to mine deposits
depend on accurate drillhole data.

5.2 Responsibility of Wellsite Geologist

To effectively carry out their role, wellsite geologist shall be familiar with BHPB Health
Safety and Environment standards, the drilling contract including contract rates,
collection of samples, core recovery, plugging of drill holes. A copy of Drilling Contract

IMC_EX_P002_SOP_EXPL_Wellsite Geologist Work Procedure.doc 2

 Doc. No. -
INDOMET COAL PROJECT Rev A
Geology Standard Procedure Date 02/07/2010
WELLSITE GEOLOGIST WORK PROCEDURE Page A 3

shall be stored on the base camp as guideline if any dispute with drilling contractor. In
particular, the Wellsite geologist shall be responsible for:

• Be on site at all the times and carry out daily safety meeting and sign off wellsite
geologist Daily Checklist with driller contractor.

• Ensure The accuracy of times, metreages and consumables usage on the

drilling contractor DDR's.

• Logging chip samples that collected every 1 meter drill at the rig and watching
change lithology related to changed of penetration rate and variation in bit and
chain/drill pipe/engine/ noise

• Wellsite geologist is required to know the drilling depth in progress in order core
or cutting depth can be recorded as accurate as possible which it can be done
through recognise length of Kelly, drill rods, drill bit, sub-bit before start drilling.

• Ensure for partial core that coring should be commenced at least 1 meter above
seam roof while end of drilling will be carried out 5 m below coal seam in order
all coal seam section can be captured by geophysical log. If no coal seam, the
depth is appropriate with drilling target.

• Ensure each hole is effectively run by geophysical log.

• Ensure the hole peg number can be identified and that the peg is placed in the
correct position relative to the drillhole.

• Ensure that each peg is marked clearly with borehole name, the total depth,
drilling date, and casing depth for the surveyor

• Ensure drill sites are left in a clean and tidy condition and a record of
Rehabilitation requirements kept.

• Ensure the next drillsite(s) has been prepared for the following drilling.

• Ensure that hard copy geophysics (2 copies) and .las files for each hole have
been generated and supplied by the geophysical logger.

• Making accurate depth measurements at the beginning and end of core runs
and allocating Core Loss if clearly evident.

• As required, sampling, packing, and promptly despatched coal cores for quality
analysis to Superintendent/Senior Geologist in Balikpapan for verification prior
to send to Laboratory.

• As required, sampling and testing LOX samples as procedure on MCP Drillsite

Procedure Manual.

• As required, taking core samples for geotechnical testing as procedure on MCP

Drillsite Procedure Manual.

IMC_EX_P002_SOP_EXPL_Wellsite Geologist Work Procedure.doc 3

 Doc. No. -
INDOMET COAL PROJECT Rev A
Geology Standard Procedure Date 02/07/2010
WELLSITE GEOLOGIST WORK PROCEDURE Page A 4

• As required, taking Acid Rock Drainage samples for environmental purpose as

procedure on MCP Drillsite Procedure Manual.

• As required, sampling groundwater encountered during drilling operations as

procedure on MCP Drillsite Procedure Manual.

• Boxing core for storage at core shed in Bumbun Camp. Core boxes are to be
marked as follows:

Example: KC2079PC

Box 1 of 5

55.00 – 60.00

Remark KC2079PC is drillhole name

Box 1 is box number

Of 15 is total number of box for drillhole.

55.00 - 60.00 (From Depth) (To Depth)

• The wellsite geologist shall be responsible for informing the geophysical logging
operator the location of drilled holes and coal seam intersection to ensure the
holes perfectly are logged as soon as practical. At this time the geophysical
logging operator shall be notified of any hazardous conditions likely to be
encountered in the drillholes that could endanger the logging tools.

• After drilling complete, the wellsite geologist should inform to Surveyor as soon
as possible the location of drilling for ground survey.

• The wellsite geologist shall inform the status of the drilling program to Operation
Coordinator on a daily basis. Afterwards Operation Coordinator will forward to
Project Geologist/Superintendent Geology.

5.3 Data Collection

The collection of drillhole data in notebook PC’s is the primary responsibility of the
wellsite geologist. The consistently field data naming system is essential (refer to
SOP_EXPL_FIELD DATA NAMING STANDARD V1).

The role of wellsite geologist in data collection includes:

• The correct recording of borehole header information into Logcheck including

project name; hole number; hole type; subtype; total depth; state, county, block,
lease, traverse (Drillsite name), start and finish date, survey method, geological
data source; map zone; Company ( drilling Contractor), Person ( Geologist’s
initial), azimuth and inclination for angled holes.

• The correct recording of borehole drilling information into Logcheck including

date, depths, drill type, bit type, rig type, hole size, core size, hole size name,

IMC_EX_P002_SOP_EXPL_Wellsite Geologist Work Procedure.doc 4

 Doc. No. -
INDOMET COAL PROJECT Rev A
Geology Standard Procedure Date 02/07/2010
WELLSITE GEOLOGIST WORK PROCEDURE Page A 5

casing depth, casing type, and casing size. Every change drill bit and drill type
such as open hole/ cored drilling shall be record into drilling table.

• The correct recording of lithological information into Logcheck including detail

descriptions of lithology and depth, changes in lithology down the hole, log
status, ,seams/horizons if any, core recovery if any, log basis, sample number,
etc.

• The correct recording of borehole water level information l.

• The correct recording of geotechnical information into Logcheck for core

including changes in rock mass units down the hole and defects associated with
those rock mass units, groundwater information including depth, test type,
results, and measurement units.

• The correct recording of coal sampling information into Logcheck, sample

submission sheet, and sample dispatch form.

• The correct recording of Lox sampling, test results and depth into the
appropriate fields of the Lithology sheet in Logcheck and CSN testing result
form.

• The correct recording of geotechnical sampling information into the

IMC_EX_F005_Geotechnical Sample Report Sheet.

• Correction of data (lithological, geotechnical, and coal sampling) against

geophysical logs prior to submission of data to the Supervising Geologist.

• After completing drilling each hole, the drill supervisor shall fill out the
IMC_EX_F012 Borehole Completion form including hole name, Drillsite name,
geologists initials, hole type, start date, finish date, total depth of drilling, total
depth of geophysics, geophysical tools used, supplied geophysics data, drilling
company, survey status, lithology adjusted, logcheck entry, loaded Gbis,
cemented, casing, and site clean up. Email notification and borehole completion
form shall be sent to senior/project geologist who conducts data verification and
coal sample despatch to laboratory.

• All data collected in the field shall be stored in \\Minbpn-

VL01\Data2\Kal\<CCoW>\02 <block name>\06 RAW FIELD DATA (FIELD
DUMP). While hard copy of field data including graphic defect log shall be taken
to Balikpapan office for scanning afterward stored in folder \\Minbpn-
VL01\Data2\Kal\<CCoW>\02 <block name>\01 DRILLING\01 SLIMHOLE
DRILLING\06 Defect Log (Scanned).The following is the field data shall be
taken to Balikpapan office

1. Drill supervisor daily checklist

2. Hard copy logs including the headers, drilling, lithology, geotechnical, and
graphic defect log

3. Logcheck files.

IMC_EX_P002_SOP_EXPL_Wellsite Geologist Work Procedure.doc 5

 Doc. No. -
INDOMET COAL PROJECT Rev A
Geology Standard Procedure Date 02/07/2010
WELLSITE GEOLOGIST WORK PROCEDURE Page A 6

4. Core recovery sheet

5. Coal sample submission sheet, geotechnical sample report sheet, and ARD
sample report.

6. Document sample transmittal slip for each different analysis sample.

7. CSN Testing result

8. Hard copy geophysics

9. LAS files

10. Borehole Summary and Completion report

11. Core photographs, Core box photograph, CSN Photographs, chip

Photographs

6.0 DOCUMENTATION
Appendix 1: IMC_EX_F004_Coal Sample Submission Sheet

Appendix 2: IMC_EX_F005_Geotechnical Sample Report Sheet

Appendix 3: IMC_EX_F007_ARD Sample Report Sheet

Appendix 4: IMC_EX_F003_Core Recovery Sheet

Appendix 5: IMC_EX_F001_Collar, Drilling and Casing Log

Appendix 6: IMC_EX_F002_Seam and Lithology Log

Appendix 7: IMC_EX_F011_Borehole Summary Report

Appendix 8: IMC_EX_F012_Borehole Completion Form

IMC_EX_P002_SOP_EXPL_Wellsite Geologist Work Procedure.doc 6

 Doc. No. -
INDOMET COAL PROJECT Rev A
Geology Standard Procedure Date 02/07/2010
WELLSITE GEOLOGIST WORK PROCEDURE Page A 7

APPENDIX 1:
COAL SAMPLE SUBMISSION SHEET
Adjusted by Geophysical Log
Tick here

INDOMET COAL PROJECT - INDONESIA

PROJECT : DATE SAMPLED :

BLOCK : DATE FORWARDED TO LAB :
HOLE NUMBER : NO. SAMPLES FORWARDED :
SAMPLER : LABORATORY :

SEAM / DEPTH (m) CORE REC. SAMPLE ANALYTICAL

SAMPLE NO. THICKNESS (m) NO. OF BAGS
PLY From To (%) DESCRIPTION SCHEDULE

IMC_EX_P002_SOP_EXPL_Wellsite Geologist Work Procedure.doc 7

 Doc. No. -
INDOMET COAL PROJECT Rev A
Geology Standard Procedure Date 02/07/2010
WELLSITE GEOLOGIST WORK PROCEDURE Page A 8

APPENDIX 2:

IMC_EX_P002_SOP_EXPL_Wellsite Geologist Work Procedure.doc 8

 Doc. No. -
INDOMET COAL PROJECT Rev A
Geology Standard Procedure Date 02/07/2010
WELLSITE GEOLOGIST WORK PROCEDURE Page A 9

APPENDIX 3:
ARD SAMPLE REPORT SHEET
Adjusted by Geophysical Log

IndoMet Coal Project-Indonesia

Project : Date Sampled :

Block : Date Forwarded to Lab. :
Hole Number : No. Sample Forwarded BAGS
Sampler : Laboratoy :

Depth Thickness
BOX Sample No. Sample Description Seam Weigth (Kg) Remark
From (m) To (m) (m)

IMC_EX_P002_SOP_EXPL_Wellsite Geologist Work Procedure.doc 9

 Doc. No. -
INDOMET COAL PROJECT Rev A
Geology Standard Procedure Date 02/07/2010
WELLSITE GEOLOGIST WORK PROCEDURE Page A 10

APPENDIX 4:
CORE RECOVERY SHEET

PROJECT : _____________________ DRILLING COMPANY : _____________________

BLOCK : _____________________ RIG NO. : _____________________

DRILLSITE NO. : _____________________ DRILLER : _____________________

BOREHOLE NO. : _____________________ SITE GEOLOGIST : _____________________

RUN DRILLING RUN RUN REC LOSS (-) STICKUP DEPTH OF RQD RQD
DATE SHIFT
No. FROM TO CORED REC (%) PICKUP (+) CUM LOSS CORE (m) (%)

Page ____ of ____

IMC_EX_P002_SOP_EXPL_Wellsite Geologist Work Procedure.doc 10

 Doc. No. -
INDOMET COAL PROJECT Rev A
Geology Standard Procedure Date 02/07/2010
WELLSITE GEOLOGIST WORK PROCEDURE Page A 11

APPENDIX 5:
DATE LOGGED
PROJECT SITE_ID DILLSITE NO.
D D M M Y Y
LOGGER'S
INITIAL
INDOMET COAL PROJECT
COLLAR, DRILLING and CASING DATA
COLLAR LOG SHEET
SITE_SUB_T
SITE_TYPE

TRAVERSE
COUNTY

BLOCK

LEASE
STATE
START_DEPT END_DEPTH REMARKS START_DATE END_DATE
SURV_SOURC
SURV_METHO

SURV_RELY

DIP_ANGLE
MAP_ZONE

COMPANY

PERSON

DIP_DIR
COORDSYS EASTING NORTHING HEIGHT SURV_REMAR

DRILLING LOG SHEET

DRILL_EQUI
DRILL TYPE

HOLE_SIZE
BIT_TYPE

DEPTH_FROM DEPTH_TO HOLE_DIAME CORE_DIAME REMARKS

CASING LOG SHEET

CASING_TYP

RETRIEVED

DEPTH_FROM DEPTH_TO ABANDONED REMARKS

IMC_EX_P002_SOP_EXPL_Wellsite Geologist Work Procedure.doc 11

 Doc. No. -
INDOMET COAL PROJECT Rev A
Geology Standard Procedure Date 02/07/2010
WELLSITE GEOLOGIST WORK PROCEDURE Page A 12

APPENDIX 6:
DATE LOGGED
PROJECT SITE_ID DILLSITE NO.
D D M M Y Y
LOGGER'S
INDOMET COAL PROJECT
SEAM AND LITHOLOGY DATA

SEDIMEN FOSIL FOR TECTONIC

COLOUR QUALIFIERS TEXTURE BEDDING
STRUCTURE MINERALS STRUCTURE
SM / HZ_CODE

CORE_RECOV

MECH_STATE

WEATHERING
PARENT_INT

ROCK_STRN
LOG_BASIS

GRAINSIZE
CONTACT
INT_TYPE

LITH_PCT

BEDDING

SED_STRUCT

FOS_MIN_AS
FOS_MIN_TY

FOS_MIN_AB
TXT_ROUND

TXT_POROS

BED_SPACE

TEC_SPACE
TXT_GRAIN

SED_RELN
TXT_MATX

BED_SEPN
TXT_PERM

TEC_DESC
TXT_SORT

TEC_TYPE
LITH

PLY

BED_DIP

SED_DIP

TEC_DIP
COLOUR

DESCR1

DESCR2

DESCR3
DEPTH_FROM DEPTH_TO SAMPLE_ID

SHADE
HUE
. .

. .

. .

. .

. .

. .

. .

. .

. .

. .

. .

. .

. .

. .

. .

. .

. .

. .

. .

. .

. .
Page of
Remarks

IMC_EX_P002_SOP_EXPL_Wellsite Geologist Work Procedure.doc 12

 Doc. No. -
INDOMET COAL PROJECT Rev A
Geology Standard Procedure Date 02/07/2010
WELLSITE GEOLOGIST WORK PROCEDURE Page A 13

APPENDIX 7:
INDOMET COAL PROJECT - INDONESIA BOREHOLE SUMMARY REPORT
PROJECT:

BLOCK:

GEOLOGISTS:

COORDINATE OPEN HOLE CORE HOLE TOTAL COAL INTERVAL GEOPHYSICAL

DATE DATE COAL REC SAMPLE
HOLE NO. SITE NO. Elev. FROM TO TOTAL FROM TO TOTAL DEPTH FROM TO THICK COMMENTS
START FINISH Easting Northing SEAM NO. GAM DEN SON CAL
(m) (m) (m) (m) (m) (m) (m) (m) (m) (m) (m) (%)

IMC_EX_P002_SOP_EXPL_Wellsite Geologist Work Procedure.doc 13

 Doc. No. -
INDOMET COAL PROJECT Rev A
Geology Standard Procedure Date 02/07/2010
WELLSITE GEOLOGIST WORK PROCEDURE Page A 14

APPENDIX 8:
BOREHOLE COMPLETION FORM
INDOMET COAL PROJECT
CCOW :
BLOCK :
HOLE DRILLSITE HOLE START FINISH TOTAL TOTAL GEOPHYSIC DRILLING SURVEY LITHOLOGY LOGCHECK SAMPLE STORE CASING SITE EMAIL
GEOLOGIST HOLE COMMENTS
NUMBER NAME TYPE DEPTH DEPTH DEPTH DEPTH SOFT PRINTED COMPANY STATUS ADJUSTED ENTRY SHEET DATA IN TYPE SIZE ABADONED CLEAN UP NOTIFICATION
DRILLING GEOPHYSIC DATA REPORTED FIELD DUMP CAP (inch) (m) TO PROJ. GEOS

IMC_EX_P002_SOP_EXPL_Wellsite Geologist Work Procedure.doc 14