2017-04-11_REPORT - M1977424 (2)

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Logan Wash Mine Annual Report Permit No. M-1977-424 5.2 Evaporation Pond Maintenance Maintenance of the Evaporation Pond included inspection of: 1) discharge rates to the pond from the mine retort water plumbing system; 2) the leak detection vault; 3) wildlife security fence; 4) stormwater drainage ditches; and 5) general conditions of the pond, liner, and egress ladders. The leak detection vault sump pump and associated float switch and plumbing were replaced. No liner repair was conducted in the reporting period. Other minor repairs were conducted when needed. 6.0 Anticipated Reclamation in the Year 2017 Because the fate of retort water discharge is currently being assessed under Amendment No. 1, OOSI does not anticipate revegetation or reclamation of any unreclaimed roads or disturbed surface areas at the mine site in 2017. Saplings that were planted on the mine dump faces will be assessed for overall health and mortality. No mechanical irrigation of these saplings is anticipated. Roads not reclaimed will be maintained. Transplanting of P. debilis will be conducted if deemed necessary for plants located on the Lower Bench Road; plants will be moved to the fill slope area adjacent to the road. Evaporation Pond maintenance will include access road maintenance, repair and replacement of pond egress ladders, weed and brush control, leak detection sump pump maintenance, and other maintenance as needed. OOSI is working on plans to deconstruct the pond and construct and smaller, more appropriate sized pond, or relining the existing pond. DRMS will be informed when design plans are complete; a technical revision will be prepared, if required. OOSI anticipates submittal of several revegetated areas for reclamation (warranty) release in 2017. 7.0 Anticipated Disturbance in the Year 2017 OOSI is in the process of evaluating final mine closure alternatives, focusing on mine water management. No new disturbance is anticipated to occur in 2017 at this time within the mine permit area associated with OOSI mine permit activities. Minor ground disturbance may occur on the Lower Bench Road which is currently not under reclamation, during transplanting of P. debilis species. Should construction associated with reconstruction of the Evaporation Pond commence in 2017, disturbance of previously undisturbed ground is not anticipated. Maintenance of mine roads will be conducted as necessary. 8.0 Threatened Species Designation On July 27, 2011, the U.S. Department of Interior, Fish and Wildlife Service (USFW), listed the plant Penstemon debilis (Parachute beardtongue or P. debilis) as "threatened" status under the Endangered Species Act of 1973 (Act). The critical habitat for the plant is in Garfield County and the Logan Wash Mine site falls within this critical habitat. Numerous P. debilis plants have been observed growing within and along the flanks of the Upper Access Road from the Research Mine portal area to the north on the Upper Mine Bench Road and Lower Mine Bench Road. An Article of Designation (AOD) was signed by Colorado Parks and Wildlife (CPW), OOSI, and Oxy WTP in early 2015 and finalized on February 3, 2015, The AOD allows for OOSI to mitigate impact to P. debilis habitat while conducting reclamation obligations under the DRMS mine permit. Western Water & Land, Inc. 10