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or by the Post-Mine Channel PM-5 drainage on the south. In the vicinity of the final pit, the land has been graded into a bowl shaped configuration. Water is impounded in the bottom of the bowl and is referred to as the old Wolf Creek Pond. A water sample was collected from the northwest comer of the pond on August 11, 2006 by DRMS and analyzed on-site for pH, conductivity and temperature. The pH/conductivity meter was calibrated at 08:30 on the moming of the inspection at the SCC Mine office. A duplicate sample was taken from the approximate same location and the sample results are tabulated below. It appears that this pond may drain to the north when the water level reaches a higher level. Field Parameters Sam le #1 Sam le #2 Field H S.U. 3.59 3.48 Tem erature C 23.1 22 Conductivi umhos/cm 610 640 The impounded water does present a problem due to its acidity. The applicable rules (at the time of mining) require that acid forming and toxic producing material had to be handled to protect the drainage system from pollution. Further, the impoundment does not meet current requirements of Rule 4.05.9. The entire upper Wolf Creek azea was traversed. There aze remnants of a shrub plot above and east of the pond. Contour furrows were dug above the shrub plot to protect it from erosion. There ate numerous rills above and north of the shrub plot, and two lazge erosion gullies on either side of the plot. The gully to the south of the shrub plot was measured to be 4.5 feet deep. The gully to north of the shrub plot was up to 7 feet deep. Spoil was cast onto previously undisturbed ground to the north and south of the bowl area. There aze steep drainages to the north and south on either side of the old Wolf Creek Pit. Spoil on the north side does not blend well with the surrounding landscape and at least one lazge crack and a gully were noted in the spoil on the north. Spoil cast to the south drainage blends in better with the surrounding topography than on the north side. There also appears to be spoil cast from the lower pre-law azeas along the canyon to the south from the start ofPost-Mine Channel PM-5 up to an undisturbed azea below the old Wolf Creek Pit. This azea along the canyon to the south does appear more stable with adequate vegetation. Summary and Conclusions The DRMS has completed its review and evaluation of the Phase I bond release request submitted by SCC for the Seneca II Mine. Two specific azeas as described in this document do not meet the criteria for Phase 1 bond release. These areas are referred to as the East Wadge Pit azea and the old Wolf Creek Pit and are shown on Figure 1 of this document. Based upon a review of the mine permit, the applicant's bond release application, and site inspections, the DRMS finds that SCC has completed backfilling, grading and drainage reestablishment at all other azeas of the Seneca II Mine for which Phase I bond release was requested in accordance with the approved reclamation plan. With exception of the East Wadge Pit azea and the old Wolf Creek Pit, backfilled and graded azeas and reconstructed drainages throughout the reclaimed acreages remain in good condition with maintenance needed on limited azeas noted previously in this document. 15