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J. E. STOVER & ASSOCIATES, INC. <br />2352 NORTH 7T" STREET, UNIT B <br />GRAND JUNCTION, COLORADO 81501 <br />PHONE: (970) 245-4101, FAX: (970) 242-7908 <br />MINE ENGINEERING CIVIL ENGINEERING <br />MINE RECLAMATION CONST. MANAGEMENT <br />BOND RELEASE LETTER <br />April 19, 2018 <br />Dear People: <br />CAM Mining LLC has reclamation responsibility under Division of Reclamation, Mining and Safety, Permit <br />No. C-1981-020. This responsibility includes the Munger Canyon Mine and its associated facilities. <br />One provision of the Division of Reclamation, Mining and Safety's Rules is that the mine must be bonded <br />for the estimated reclamation cost. Now that the reclamation work has been performed and vegetation <br />has been established, CAM Mining LLC has formerly requested a final bond release from the Division of <br />Reclamation, Mining and Safety. CAM Mining LLC, has a bond liability of $49,121.12 and has requested <br />a complete release of $49,121.12. In accordance with the Division's Rule 3.03.2(1). CAM Mining LLC, is <br />required to send written notice of its bond release request to adjacent land owners, surface owners and <br />various local governing bodies. <br />Final bond release is being requested at the Munger Canyon Mine site. The mine site is located in <br />Garfield County, approximately 18 miles north of Loma, CO along State Highway 139. The areas for <br />which bond release is being requested are encompassed within portions of the S/2NE/4, SW/4, S/2SW/4, <br />NE/4/SW/4 of Section 22, NW/4NW/4, SW/4 of Section 27, N/2S/2, S/2N/2, N/2NE/4 of Section 28, and <br />S/2NE/4 of Section 29 Township 7 South, Range 102 West, 6th principal meridian containing <br />approximately 21.2 acres. <br />During 2006 a light use road located in Munger Canyon was contoured and seeded. The sediment pond <br />was reclaimed in 2017. The mine portal area, haul road and coal mine waste disposal areas were <br />contoured and seeded during 2007. <br />Based on a vegetation evaluation performed during May and June 2013, a demonstration was made that <br />untreated drainage from the reclaimed areas do not contribute additional suspended solids above natural <br />conditions. Review of collected data from 2016 and 2017 demonstrates the success and utility of the <br />revegetated area, especially given vegetative ground cover and favorable results with regard to <br />production and woody plant density. Field studies have shown that the target reclaimed plant <br />communities have progressed sufficiently to be meet Phase III bond release requirements. Ground cover <br />of perennial plants within the reclaimed area is comparable to adjacent undisturbed native communities <br />and plant succession is occurring and progressing in a positive direction, indicating that plants are self- <br />sustaining. <br />Sincerely, <br />J. E. Sfo-vtlr <br />J. E. Stover, P.E. <br />Consulting Engineer <br />