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farmed areas to the east of the 5A/6 Portal Area as part of an ongoing program to improve the condition and
<br />productivity of rangelands within the Permit Area.
<br />Areas treated included, but were not limited to:
<br />- Roadsides (main entry road, roads on the plateau area north and west of the road leading to the 7 -North
<br />Angle Well, and portions of the main entry roads in both the east and west mine facilities areas)
<br />- The open meadow to the north of the reclaimed Mine No. 4 portals
<br />- The farm fields to the east of the 5A/6 portals
<br />- Mine substations (Glystar)
<br />During third-quarter 2016, in preparation for a planned bond -release submittal, site conditions for the Utah Tract
<br />were assessed through an on -the -ground site reconnaissance. No excessive rills or gullies were observed, and
<br />vegetative reestablishment looked to be very good. Previously, during a CDRMS site inspection in 2014, it was
<br />noted that permit area boundaries for the Utah Tract were not clearly marked and there were some areas where the
<br />delineation between the Utah Tract and the adjacent Trapper Mine reclamation was not clear. Former Peabody
<br />Employee and Registered Land Surveyor, Joe Shoemaker, was hired during the summer of 2014 to check and
<br />verify the locations of permit boundary markers, correct any errors, and add additional markers, as appropriate. A
<br />subsequent CDRMS inspection of the area confirmed that the appropriate markers were in-place and accurate.
<br />Land Management and Bond Release
<br />In order to address practical funding limitations relative to ongoing site maintenance, and with the objective of
<br />enhancing the condition of selected rangelands within the Permit Area (undisturbed - Williams Fork bottom, the
<br />plateau area south of the 7 -North Angle Well, and the hillside to the east and south of the old highway, and in the
<br />future, bond release areas), MCM contracted with a local rancher (Jake Timmer). The Agricultural Use Agreement
<br />addresses ongoing weed and rodent control, tillage, and selective seeding and harvest of beneficial nitrogen -fixing
<br />and grain crops, in return for the revenues from the resulting grain and hay crops and the ability to use the selected
<br />areas for limited late -season grazing. These activities were initiated in 2015, continued through 2017, and will
<br />carry -forward for several years under the existing agreement. During 2016-2017, weed control, range
<br />improvement, and related agricultural activities were completed on approximately 430 acres under this agreement.
<br />A bond release application was submitted in September 2016 for several areas that had been reclaimed, including
<br />the Williams Fork Strip Pit, Utah Tract, and several smaller areas. After initial review, the bond release was put on
<br />hold since some of the revegetation success sampling was considered outdated. Subsequently, MCM contracted
<br />with ESCO Associates and their successor, Cedar Creek Associates, to complete supplemental revegetation success
<br />sampling, consistent with applicable permit requirements, and in support of a pending bond release application.
<br />The sampling effort included; Utah Tract (pre- and post -law), Williams Fork Strip Pit (pre- and post -law), No. 5
<br />Mine Portal Area, No. 9 Mine Portal, Shop and Refuse Pile Areas, other miscellaneous reclaimed areas (Bathhouse
<br />and Office Area, Brasell-Simms Building, and Reclamation Storage Building). Revegetation success sampling was
<br />conducted in 2014 and 2015, and the final sampling report was received in third-quarter 2016. Based on favorable
<br />sampling results, MCM is currently working on review and re -submittal of a bond release application for the
<br />subject areas.
<br />Attached are copies of the standard form (CDRMS) Annual Reclamation Report for 2017, and 2017 Annual
<br />Reclamation Report Map. Please note that this report incorporates a number of minor changes and updates
<br />resulting from the Division's review of recent ARR's. If you have any questions or require further information,
<br />please feel free to contact me at your convenience.
<br />Sincerely,
<br />For Moff ou y Mining, LLC
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<br />Manager Affairs
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