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March 27, 2002 Coaldale Gypsum Mine Permit # 77-247 Annual Report Narrative The Coaldale site is on schedule for completion of closure tasks as outlined in the 1997 Amendment to Permit. Year 2001 resulted in removal of the final highwall feature located above the former crusher site and along the lower reaches of Zinc Hill as shown on the map included in this mailing. The highwall was removed via bulldozer, track mounted excavator, and drilling/blasting as necessary to result in a rock talus and gypsite soils on a slope ofno steeper than 1:1. The final grading configuration was enhanced via bulldozer and excavator to result in a series of contour ditches remaining on the slope to facilitate the establishment of grasses and shrubs. A native seed mix of grasses, shrubs, and forbes was broadcast over the azea after application of inorganic nitrogen and phosphate fertilizer, 40#/acre and 75#/aae respectively. The seed mixture was applied at a rate of 35#/aae prior to mulching with wheat straw at a rate of 3000#/aae. During the spring of the 2001 field season, the newly graded highwall areas and the areas re-graded and planted during the 2000 and the 1999 field season were also broadcast seeded and mulched. During late spring (April and May), tree seedlings purchased from the Colorado State Forest Service were planted to replace forma planting that had not survived. These seedlings were maintained via periodic watering as necessary during the regulaz growing season including late season watering intervals through October, 2001. Approximately 200 seedlings were planted to replace existing plantings. All Ponderosa pine seedlings were caged with 14 gauge welded wn•e 2" x 4" for protection against deer damage. All seedlings received water retention agent and slow release fertilize along with 4" of straw mule. During the summa months, additional highwall stabilization work was performed along the footwall contact (Gold Hi11), which included the use of high pressure water applied via Sre hose, hand barring, drilling and blasting of gypsum rock left along the footwall contact. This hand work area included all tasks performed from safety lines with a four person crew. During mid August, the primary gushing system was dismantled for shipment to Nova Scotia, Canada. The gusher bin and structw~al steel were removed from the site. All othe equipment was dismantled and loaded onto six truckloads for transport doming the week of September 9'". The site was cleaned of the snap and steel left from dismantling operations, leaving only concrete pigs and foundation behind. Only the pump house and electrical pedestal saving the well remains on site. During February and March, 2002, the congcte structures were backfilled with gypsum rock and fines from the stockpile area, covered and planting medium to app. 1 foot depth, and prepared for revegetation. 2001 Geld work proceeded on schedule for site closure completion in 2002. KS Klco Consulting Geologist Azurite, Inc.