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Phase III Bond Release Evaluation ----- Year 1 of 2 <br />Blue Ribbon Mine <br />2006 Revegetation Success Evaluation <br />1.0 INTRODUCTION <br />1.1 General <br />Cedar Creek Associates, Inc. (Cedar Creek) was contracted in 2006 to implement Phase III <br />vegetation evaluations within the revegetated portions of the Blue Ribbon Mine and reference areas, in <br />the interest of ascertaining revegetation success in general accordance with Rule 3.03, Release of <br />Performance Bonds and Rule 4.15.7, 8, & 9, Determining Revegetation Success. Evaluations that <br />occurred generally followed procedures indicated within approved permitting documents with certain <br />modifications in compliance with recent Colorado Division of Reclamation Mining & Safety (DRMS) bond <br />release guidelines (Guideline Regarding Selected Coal Mine Bond Release Issues, April 18, 1995). <br />Modifications primarily involved the use of the "reverse null hypothesis" testing procedure for reference <br />area comparisons even though this procedure presents a more rigorous benchmark for success. <br />Pursuant to agreements reached with DRMS during a meeting on March 7, 2005, technical revisions were <br />made to the permit document with regard to the sampling procedures and revegetation success criteria. <br />All areas subject to sampling are exhibited on Maps 1 and 2. <br />Field sampling for the directly measurable variables of ground cover, current annual production, and <br />woody plant density, as well as the indirect determination of species diversity (composition) was <br />systematically conducted on May 21 and 22, 2006. The early sampling season was necessary to facilitate <br />data collection before the local landowner trailed his sheep through the area. Cedar Creek's work was <br />completed "immediately" prior to the introduction of sheep to the reclamation (the first few sheep arrived <br />at the same time as the sampling crew.) Current conditions notable at the time of sampling were <br />documented through qualitative observations, and by several photos providing a visual demonstration of <br />site-specific conditions. Sampling was conducted by and/or under the direct supervision of Cedar Creek's <br />Senior Range Ecologist Steven R. Viert and Plant Ecologist, Mr. Erik M. Mohr. <br />CEDAR CREEK ASSOCIATES, INC. Page 1 Blue Ribbon Mine - 2006 <br />Phase III Bond Release Evaluation <br />