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Hydro-Environmental Solutions, Inc. <br />hydrology, water quality and enviroameatnl coasu/tiag services <br />February 16, 2006 <br />Mr. Byron Walker <br />Colorado Division of Minerals and Geology <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />(303) 866-3567 <br />Re: Hayden Gulch Terminal, Inc. <br />Hayden Gulch Mine, Permit No. C-80-003 <br />2005 Annual Reclamation Report <br />Dear Mr. Walker, <br />RECEIVED <br />FEB ~ 7 2006 <br />Division of Minerals b Geology <br />On behalf of Hayden Gulch Terminal, Inc. (HGTI), attached please find three copies of the 2005 <br />Annual Reclamation Report (ARR) for HGTI's Hayden Gulch Mine, Permit C-80-003. This report <br />is submitted pursuant to Rule 2.04.13 of the Regulations of the Colorado Mined Land Reclamation <br />Board for Coal Mining. <br />As you are aware, the Hayden Gulch Mine currently contains 8.9 permitted acres for which the <br />Colorado Division of Minerals and Geology (CDMG) holds a reclamation performance bond in the <br />form of a Corporate Surety. The 10-year liability period for final bond release ended in 2004, and <br />final bond release vegetation studies were initiated last yeaz. <br />The ARR presents vegetation data collected in 2005 by ESCO Associates, Inc., of Boulder, <br />Colorado that will be incorporated into the final bond release application to document successful <br />revegetation of the mine site. The vegetation sampling methodology was approved by CDMG staff <br />in 2004 prior to the 2004 sapling event. The vegetation sampling plan is included in the 2005 ARR. <br />As part of the Phase IllPhase III bond release findings, the CDMG approved the cessation of the <br />hydrologic monitoring activities at the Hayden Gulch Mine in June 1999. In addition, the Colorado <br />Department of Public Health and Environment (CDPHE) approved the request to de-activate the <br />Colorado Discharge Permit System wastewater treatment permit in October 1999. Since both <br />CDMG and CDPHE have released the Hayden Gulch Mine of previous hydrologic monitoring <br />requirements there was no hydrologic monitoring at the mine during calendar year 2005, and <br />therefore this report does not contain any hydrologic monitoring information. <br />P.O. Box 772996 <br />57 /0'" Street, Suite B <br />Steamboat Springs, CO 80477 <br />970-87/-6/25 <br />