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February 2006 Hayrkn Guleb Temnnaf, Inr. * Hayekn Guleb Minc - 2005 Annual Rerlamotion Report •Pagr > 1.0 INTRODUCTION This Annual Reclamation Report summazizes reclamation activities, including revegetation sampling completed during 2005 at the Hayden Gulch Mine. The report provides supplementary information to the Colorado Division of Minerals and Geology's (CDMG) reclamation report form. The reclamation data is submitted to fu181] the requirements of Rule 2.04.13. Surface ownership and right of succession of the Hayden Gulch Mine, Permit No. C-80-003, was transferred to Hayden Gulch Terminal, Inc. (HGTI) in December 2002. The CDMG issued the proposed decision to approve Transfer of Permit No. 1 on December 17, 2002. A copy of CDMG's proposed decision to transfer the permit to HGTI is presented in Exhibit 1. At the time of the permit transfer, HGTI posted a Corporate Surety for $27,437.27 to cover the outstanding reclamation liability. Approximately 364 acres were disturbed by the mining operation between 1980 and 1986. The Hayden Gulch Mine entered permanent cessation in 1986 and initiated final reclamation activities. In March 1988, CDMG approved a Phase I bond release (SL-O1) for the 319 acres disturbed in the mine pit area. In June 1997, the CDMG approved a Phase I bond release (SL-02) for the 45 acres disturbed at the facilities area. Consequently, the entire 364 acre disturbance area has been released from Phase I bond liability. The CDMG approved a partial Phase IUPhase III bond release (SL-03) request in July 1999; 355.2 acres of the 364.1 acres within the disturbance area were released from any further reclamation liability. The 1999 Phase II/Phase III bond release also reduced the permit azea from 1,269 to 8.9 acres. The current permit boundary is shown on Figure 1, Hayden Gulch Mine Permit Boundary and Revegetation Sequence. Quantitative sampling of the 8.9 acre permit area was undertaken in August 2005 by ESCO Associates, Inc., of Boulder, Colorado. Vegetation cover, species diversity and shrub density sampling were conducted for purposes of collecting yeaz 10 vegetation data for final bond release of the remaining permit area. Data was collected according to parameters outlined in the Guideline Regarding Selected Coal Mine Band Re/ease Issues (CDMG, 1995). A Final Bond Release Vegetation Sampling Plan was submitted to the CDMG in July, 2004 and approved prior to initiation ofthe 2004 (yeaz 9) field work. Hydro-Environmental Solutions, Inc. P.O. Box 772996 f7 10a Strcet, Suite B Steamboat Spring; CO 80477 970-871-6725