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Memorandum Re: Kerr Historical Overview <br />November 28, 1994 <br />Page 6 <br />Mining of coal from the pits open in 1981 was near completion <br />in late 1989 and there was no immediate prospect of opening <br />additional pits. Accordingly, management of Kerr elected to begin <br />the process of determining the best reclamation plan for the mine <br />in its configuration as of 1990. In addition to developing a mew <br />reclamation plan, backfillinq operations were changed to maximize <br />reclamation of Pit 1. <br />The reclamation plan approved by the State of Colorado and <br />implemented by Kerr was the beat achievable under the <br />circumstances in which Kerr found itself in 1990. <br />