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~. To date, permanent revegetation as described in the mining and reclamation plan has <br />occurred at the Carbon Junction Mine at the permanently reclaimed spoils area. <br />Additional Information <br />The following CDMG permitting actions or revisions were undertaken in 2005. <br />Technical Revision 13 <br />This TR comprised a revision to the reclamation cost estimate for remaining reclamation <br />liability at the Cazbon Junction Mine. The TR was submitted on July 7, 2005 and found <br />complete on July 14, 2005. A final decision on the TR is still pending. <br />Phase I/II/III Bond Release Application (SIr02) <br />On July 26, 2004 an application for Phase I, II, and III bond release was submitted to <br />CDMG. The bond release request requested acknowledgement and release of liability for <br />areas of the Carbon Junction Mine that were ceded to the Four Comers Materials Ewing <br />Mesa #1 Operation where mining and reclamation obligations and liability aze covered <br />under the CDMG permit issued to Four Corners Materials for that operation. The release <br />is for 64.51 acres of the Carbon Junction permit area that includes the South Pit and <br />ancillary areas. On October 12, 2004 the application was found complete by CDMG and <br />on November 9, 2004 CDMG conducted the bond release inspection. The bond release <br />was approved on May 24, 2005. <br />Disturbed Acreage <br />There appears to be some confusion regazding the amount of disturbance at the Carbon <br />Junction Mine. The amount of disturbance has been recently represented as 156.0 acres. <br />This is incorrect. Based on the acreages calculated for TR12 and presented on pages 5-1 <br />and 5-2 the total disturbed acreage (prior to SL-02) was 59.0 acres and the total <br />undisturbed acreage was 156.08 acres. I have made the appropriate changes in this years <br />CDMG ARR reporting form. The current disturbed acreage (after SL-02) is 37.61 acres, <br />with 9.15 acres in pits, spoil, and stripped areas, and 28.46 acres in ancillary disturbance. <br />The CDMG annual reclamation report form is appended. If any additional information is <br />required, please call me. <br />Sincerely, <br />Michael S. Savage <br />Principal <br />cc: Sandra Pautsky, Oakridge Energy <br />Matt Gavin, Goff Engineering & Surveying <br />2005 Carbon Junction Mine Annual Reclamation Report Page 2 <br />CDMG Permit C-92-OSO <br />