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June 2, 2005 Seneca Coa] Company (SCC) P.O. Box 670 . Hayden, CO 81639 Yoast Mine Contemporaneous reclamation evaluation May 26, 2005 Participants: Roy Karo, SCC Mike Boulay, Colorado Division of Minerals and Geology (DMG) Jim Stark, DMG Henry Austin, Office of Surface Mining (OSM) I participated in an evaluation of contemporaneous reclamation practices at the Yoast Mine with the above participants. This mine and special focus topic were selected by the joint DMG / OSM Oversight Team for evaluation during 2005. Weather conditions were mild with localized showers in the area and ground conditions were basically dry. This evaluation focused on reclamation success. Mr. Boulay began the evaluation by orienting the participants with appropriate maps from the approved DMG permit that we also took into the field for our use during the evaluation, and outlining the order of the different mine areas we would stop at and observe to determine the status of contemporaneous reclamation practices on the mine. We also discussed the major permit revision SCC has submitted to DMG for the Yoast Mine that DMG is currently reviewing. SCC determined during the fall of 2004 to phase out stripping operations at the Yoast Mine. Current projections in the permit revision show coal removal to cease at the end of the first quarter 2006, and it may cease by the end of 2005. Our first stop was at the North Pit which has been completely mined and reclaimed in accordance with the approved annual mining and reclamation plans in the permit. The Neck Pit and Lower Neck area backfilling, final grading, and topsoil replacement was completed November 2004, and seeding will be completed this spring 2005. This is in compliance with the approved permit and subsequent technical revisions (TR). TR 25 was approved September 2004. In the Wolf Creek Pit the dragline is slightly ahead of schedule into the approved 2006 mining azea. All 2004 mined areas aze in final grade and will be topsoiled and seeded during 2005. All the Wolf Creek 2005 approved mining areas shown on Map 19-1A that have been affected will also be backfilled and graded, topsoiled, and seeded this year.