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October 23,2013 C-1981-041/Roadside Portals MPB I, II, and II they are referenced in the bond release application as Haul Roads CRDA 1,2, and 3 see Item 98 of Attachment 2 of this report. They have been approved as permanent roads and will not be reclaimed. Haul Road 4 is the main Coal Creek access and has BLM permanent easement consent letter in Appendix 14-5 page A 14-5- 7of the PAP. Haul Road 5 is a shared road between Public Service Company and Snowcap Coal Company for access to the CRDA-1 refuse pile and Xcel Energy's permanent ash pile. There are landowner consent letters in Appendix 14-5 pages A14-5-11 through 15 in the PAP. The North Decline Road(Item 93 on Attachment 2)is identified as Access Rd 2 in the PAP and is a permanent road with approval/consent letters also contained in Appendix 14-5 pages A14-5-11 and 13. The 2 West Portals Access Road(Item#13)on Attachment 2 also identified as Access Road 3 in the PAP is approved as a permanent road with approval consent letters from three landowners as follows: Powderhorn Properties pages A14-5-11 and 13,Pitkin Iron Corporation pages A14-5-3 and 4, and the BLM pages A14-5-7 and 10. RECLAMATION SUCCESS -Rule 4.15,Rule 3: All reclamation obligations have been completed for the vast majority of the acreages included within the bond release request areas. For those acreages listed on Table 2 that are being requested for Phase I bond release all requirements have been met. SCC has complied with all permit conditions and has met the requirements for those acreages listed on Table 2 being requested for Phase II&III bond release with exception of a few isolated areas where there are bare areas or a general lack of vegetation. These areas may be excluded from the Phase II, III bond release pending further consideration which will be detailed in our forthcoming Proposed Decision and Findings of Compliance for bond release application SL-8. Further evaluation and analysis of subsidence and hydrologic impacts is also continuing regarding the objection to this bond release filed by Mr. Rudolph Fontanari, Jr. Mr.Fontanari is a formal landowner objector with allegations related to subsidence and hydrology damage. REVEGETATION—Rule 4.15 Vegetative Cover;Timing: All disturbed areas at the Roadside North and South Portals Mine were seeded for revegetation utilizing the approved seed mixes contained in the PAP. Cedar Creek Associates,Inc.was contracted in 2011 and 2012 by SCC to evaluate revegetated units for Phase III bond release. Cedar Creek prepared and submitted the detailed evaluation report 2011 &2012 Phase III Bond Release Evaluation—Years 1 &2 to SCC and the DRMS in April, 2013 prior to the bond release inspection. Sampling efforts were conducted in 2011 and 2012 on 16 individual reclamation units ranging in size from less than an acre to 20.2 acres. The report includes evaluation of the Greasewood Comparison Revegetation Areas,the Shadscale Comparison Revegetation Areas and their corresponding reference areas,the Greasewood Reference Area and the Shadscale Reference Area. The revegetated areas evaluated in 2011 and 2012 were separated into two sampling units based on the reference area used for comparison, as per TR-60. Cedar Creek concluded that the data demonstrate the success and utility of the revegetated areas,especially given the levels of vegetative ground cover and favorable results with regards to diversity,herbaceous production, and woody plant density. With regard to the success standards,all bond release areas substantially exceed and pass all seven of the standards and criteria. Photographs 17 and 18 illustrate the success of the revegetation efforts at CRDA-1 and CRDA-2. The DRMS concurs with the findings made by Cedar Creek; however,as previously discussed several small bare Number of Partial Inspection this Fiscal Year: 3 Number of Complete Inspections this Fiscal Year: 2 Page 7 of 18