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RECLAMATION PERMIT STATUS: The reclamation permit status is very much as it was last <br />yeaz. The amendment has been approved and bond has been provided to activate the permit, but no <br />work has been done in the amended area because county approval has not been acquired. The <br />operation status map shows the current condition which is somewhat different from the condition <br />reported in the March 2007 annual report for the Reclamation Permit. The differences are due to <br />continued expansion of the mining. <br />County approval has been slow to acquire. The county planners have little experience with <br />mining operations and their land use rules and regulations are not well suited to address the special <br />situations encountered in mining operations. As a result of needing to adapt rules more designed to <br />address housing developments, progress has been slowed with many questions. Furthermore, the <br />county appears to be very concerned about the impact of the mining on the landscape, particularly <br />with regard to some issues and descriptions raised in the Colorado Natural Areas Program study of <br />the Coal Creek land controlled by the State. Hopefully, this county land use process can be <br />completed in the next few months. It is possible the entire effort will be abandoned if county <br />approval cannot be acquired soon. No decision has been made on that, but it is a valid option. <br />404 PERMIT STATUS: As reported last year, five new exclosures were established at habitat <br />specific locations along Coal Creek. Analysis of the woody vegetation in these exclosures was done <br />in October and the details of that analysis are provided in the 404 permit annual report submitted late <br />last year. Not much in the way of conclusions can be drawn from the first analysis simply because it <br />was the first analysis and therefore only establishes a baseline description of the woody vegetation. <br />Subsequent analyses will show growth trends and other behavior characteristics of the woody plants. <br />However, this year and in subsequent yeazs through the term of the study, quantitative sampling of <br />the vegetation will be done two to four weeks earlier than the sampling done in 2006. Although a <br />good assessment of the woody vegetation can be produced as late as October, relationships between <br />the woody vegetation and the herbaceous vegetation were difficult to define in 2006. By October <br />herbaceous growth has lazgely gone dormant and identification of some herbaceous species is <br />difficult. Furthermore, waiting until October increases the risk of having an early and heary snow or <br />killing freeze happening before the sampling is done. That would make the sampling process even <br />more difficult and subject to error or at least questionable comparisons to establish trend lines in the <br />vegetation development. Otherwise, the 404 permit status appeazs to be very consistent with <br />expectation. <br />With regard to the stream realignment and low water crossing, only moderate vegetation <br />development in these areas occurred in 2006, primarily because the growing season was quite dry. <br />With little stream flow, only hints of developing wetland species in the new channel were evident by <br />the end of the growing season. Among the planted grasses, only moderate amounts of germination <br />were evident. But with the heavy and prolonged snowfall during the winter of 2006-2007, this has all <br />changed. By July of this year, widespread wetland species were appearing in much of the new <br />channel, although densities were understandably low. The elevated water table has particularly aided <br />the more mature growth downstream from the low water crossing and this has resulted in a <br />significant expansion of wetland species and habitat in this lazge area. Higher locations in this area <br />still show little evidence of any wetland development, but eazly July is still probably a bit too soon to <br />make any judgements about wetland development in more marginal habitats. Nevertheless, the <br />vegetation along the new channel and in the broad azea north of the low water crossing has shown <br />Status report for 2007 (July 15, 2007) Page 5 of 12 <br />