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INTRODUCTION Kaiser Ventures, Inc. (Kaiser) is submitting this information as a request to the Colorado Division of Minerals and Geology (CDMG) for approval of year 2003 sampling event data (year 9(+) since initial seeding) for proposed Phase III bond release on the Dryland Reclaimed Areas at Kaiser's Chimney Rock Mine (Permit No. C-81-023). An area is eligible for Phase III bond release when Phase I and Phase II _ bond release has been granted; the fulfillment of the ten year liability period since initial seeding; documentation of revegetation success; proof of post mining land use capability; and a minimum of five years since the last seeding, fertilization, and rill and gully repair which proves that erosion has been demonstratively controlled. Kaiser believes it has met all these conditions on the Dryland Reclaimed Areas excepting fulfillment of [he ten year liability period which will be satisfied in the year 2004. Phase III bond release was approved by CDMG for the Alluvial Valley Floor (AVF) Rec]aimed Area on February 21, 2003. Kaiser is absolved of respousibility for further restoration activities on the AVF Reclaimed Area, and will not conduct any more vegetative analysis on the valley floor of the Chimney Rock Mine. The Chimney Rock Mine is a relatively small surface coal mine located in Archuleta County off State Highway 151, approximately 17 miles southwest of Pagosa Springs, Colorado. The mine is in Sections 29 and 30, Township 34 North, Range 4 West, with a permit area of 170 acres. Reclamation of the disturbed mine site (94 acres) was completed in several phases. Each phase involved backfilling, recontouring, redistributing topsoil, seeding and nmlching of the pit and facilities areas. Total area on the East Pit and Revisionl/Barren ridge Reclaimed Areas equal 54 acres and 40 acres, respectively. These reclamation areas, including acreage and corresponding date of completion, are displayed on Figures 2 and 3. Kaiser was eligible for Phase I bond release upon completion of reclamation. Consequently, during late 1991, Kaiser filed an application with the CDMG for Phase I bond release. Release of $420,000 was granted during mid-1992. This release reduced the remaining bond amount to $320,000. Kaiser was eligible for Phase II bond release upon establislunent of appropriate vegetation cover and proving that erosion was demonstratively controlled. Kaiser filed an application for Phase II bond release in October 1996. Release of $200,000 was granted on July 22, 1997. This release reduced the remaining bond amount [o $120,000. Kaiser was eligible for Phase III bond release on the Alluvial Valley Floor (AVF) Reclaimed Area after completion of two consecutive years of successful vegetative sampling proved that aself-sustaining vegetative couzmunity had been established on the valley floor. Kaiser filed an application for Phase III bond release on the AVF Reclaimed Area in August 2002. Release of $16,800 was granted on April 18, 2003. This release reduced the remaining bond amount to $103,200. The following sections provide information that supports approval of Phase III bond release for the Dryland Reclaimed Areas. The discussion focuses on documentation of revegetation success criteria and capability of the reclaimed area for post mining land use. The surface and groundwater quantity and quality impact analysis is also included in Appendix B. Public notification and proof of publication for this Phase III release is included in Appendix C. This report describes site conditions as of the first year (year 9) of the end of the ten year liability period. 053-Chimney Rock_PH380ND_2003_Qun22A4)a 1