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September 2013 Moffat County Mining, LLC * Band Release <br />operations have been reclaimed. Of the total surface disturbance of 442 acres (mine and town <br />loadout), 337 acres have been reclaimed <br />MCM contracted with Habitat Management, Inc. to complete revegetation success monitoring and <br />analysis for all previously reclaimed areas in 2005. Supplemental revegetation success monitoring was <br />completed ESCO Associates, Inc. for the more recently reclaimed areas in 2011. Copies of the <br />revegetation success monitoring reports are provided for reference as Appendices DI and D2. MCM <br />has also maintained an ongoing post - reclamation management program consisting of regular <br />inspections of reclaimed areas, stabilization or repair of rills and gullies, and noxious weed control <br />activities. <br />1.4 BOND INFORMATION AND STATUS <br />MCM maintains a Self -Bond (SB -006), which provides $3,612,679 of coverage for the current estimated <br />total reclamation liability for the Williams Fork Mines. <br />2.0 BOND RELEASE REQUEST <br />2.1 BOND RELEASE AREAS <br />Phase 1 and Phase 2 partial bond release is requested for approximately 199 acres in the Utah Tract <br />and 95.4 acres in the Williams Fork Tract. The requested bond release reflects completion of final <br />backfilling, grading, drainage control, soil replacement, reseeding, and vegetative reestablishment in <br />compliance with the approved reclamation plan and in accordance with applicable provisions of Rules <br />3.03.1(2)(a) and 3.03.1(2)(b). The proposed partial bond release areas are delineated on Map 1. The <br />proposed bond release areas do not include any alluvial valley floors, croplands, or prime farmlands. <br />Phase 1 and Phase 2 partial bond release is requested for sealing and backfilling the No. 5 Mine and <br />No. 9 Mine portals and grading, soil replacement, reseeding, and vegetative reestablishment for <br />approximately 18.2 acres of associated surface disturbance. The requested bond release reflects <br />completion of these activities in compliance with the approved reclamation plan and in accordance <br />with applicable provisions of Rule 3.03.1(2)(a) and 3.03.1(2)(b). The proposed partial bond release <br />areas are delineated on Map 1, and do not include any alluvial valley floors, croplands, or prime <br />farmlands. <br />Phase 1 partial bond release is requested for facility demolition and site stabilization, including <br />backfilling, grading, drainage reestablishment, soil replacement, and initial vegetative reestablishment <br />for a number of buildings and structures reclaimed during the periods 1996 -1998 and 2008 -2009, with <br />the associated disturbance areas encompassing approximately 4.6 acres. The requested bond release <br />reflects completion of these activities in compliance with the approved reclamation plan and in <br />accordance with applicable provisions of Rule 3.03.1(2)(a). The proposed partial bond release areas <br />are delineated on Map 1, and do not include any alluvial valley floors, croplands, or prime farmlands. <br />2.2 DOCUMENTATION OF RECLAMATION STATUS <br />Current reclamation status for the proposed Phase 1 and Phase 2 partial bond release areas is <br />documented by copies of DMG /DBMS inspection reports, included in Appendix B; MCM's Animal <br />Reclamation Reports, submitted to the DMG /DRMS and included as Appendix C; and the 2005 <br />Habitat Management Inc., and 2011 ESCO Associates revegetation success monitoring reports, which <br />are provided for reference as Appendices D1 and D2. <br />6 <br />