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Mr Michael P. Roulay © ColoraAa Divirion oJMinerak d2 Geology November 2G, 2003 Page 2 2. A Phase II band release was granted far Pit 1 in June 2001. Pond F drains the Pit 7 area and it is not approved ar a permanent pond Upon approval of a Phase II band release, temporary ponds can be removed. Please provide a xbedule for the retlamatian of Pond F. Response: The CDMG has approved retention of Sedimentation Ponds A, B, D, and E as permanent impoundments. These ponds will function as stock ponds for livestock grazing in conjunction with the approved postmining land use of rangeland/wildlife habitat. At this time, the only ponds that will be reclaimed axe Sedimentation Ponds C, F, and G. Given that final reclamation seeding was completed for the 720 Pit and Overburden Stockpile areas in 1995 and for the Pit 1 area in 1996, the 10-year regulatory liability period extends through 2006. Current vegetative reestablishment indicates that Phase 3 Bond Release may be feasible at the end of the normal 10-year liability period for the reclaimed mine areas (i.e., 2006). Kerr anticipated leaving the temporary ponds (Ponds C, F, and G) in-place until at least year 9 (2005) of the liability period to assure effective reestablishment of surface hydrologic runoff conditions. Given the cost of mobilizing reclamation equipment, Kerr would prefer to complete reclamation of all remaining temporary ponds at one time. Kerr's presen[ plans are to complete scheduled (year 9) revegetation success monitoring for reclaimed mine areas in 2005. Based on the revegetadon success monitoring results, Kerr would make a decision at that time relative to Final reclamation of the remaining ponds. If monitoring results are favorable, relative to year 10 Phase 3 Bond Release, Kerr would probably proceed with final reclamation of the remaining [emporary ponds following review of the revegetation monitoring results. It should be noted that the adjacent landowner and BLM grazing leasee (Canadian Ranches, Inc.) has expressed interest in also retaining Pond F as a permanent impoundment, since there is no nearby water source for livestock watering at the north end of the mine property. Kerr is working with the landowner to determine whether or not Pond F would meet the following applicable criteria of Ruie 4.05.9(13) (paraphrased) for permanent impoundments: a) Suitable water quality (permanent) for intended use, complying with applicable water quality standards and effluent limitations without degradation of downstream waters b) SufSciently stable water level and a compatible pond configuration for intended use c) Adequate safety and access for intended water users (i.e., livestock/wildlife) d) Prevent diminution of water quality/quantity for any affected water rights holders e) Adequately sized impoundment for intended use f) Impoundment suitable for approved postmining use If it is determined that Pond F meets these criteria and would provide an adequate seasonal water source for livestock use, Kerr may submit a revision to the permit requesting approval of Pond F as a permanent impoundment It is anticipated that the decision of whether or not to pursue permanent impoundment status for Pond F will occur prior to the 2005 decision-point for reclamation of the remaining temporary impoundments.