A preferred embodiment of a system for rotating and guiding a drill bit in an underground bore includes a drilling motor and a drive shaft coupled to drilling motor so that drill bit can be rotated by the drilling motor. The system further includes a guidance module having an actuating arm movable between an extended position wherein the actuating arm can contact a surface of the bore and thereby exert a force on the housing of the guidance module, and a retracted position.
Pursuant to 35 U.S.C. .sctn.202(c), it is acknowledged that the U.S. government may have certain rights to the invention described herein, which was made in part with funds from the U.S. Department of Energy National Energy, Grant No. DE-FG02-02ER83368.