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Colony Shale Oil Project <br />Section 112 Annual Report <br />Map <br />Reclamation activities performed since the last anniversary d<3te are shown in the enclosed map <br />"Affected Land Status -Figure 3." <br />Coarse Ore Valley Stabilization/Reclamation <br />In June, 2001 we began athree-year Coarse Ore Valley Stabilization Project to smooth rough <br />areas and improve the vegetation in Area 17. The plan for that project was filed with our 2001 <br />annual report. Thanks to improved weather, persistence in procuring Douglas Fir seed, and <br />know-how developed throughout the project we are pleased to report that all of the work <br />originally planned is complete, and results to date are encourscging. <br />The original project plan was in three annual phases, each consisting of earthwork to smooth <br />the disturbed areas and revegetation with native grasses/shrubs in the fall and, where practical, <br />Douglas Fir (pseudotsuga menziesii glauca) in the following spring. The first phase of work, <br />beginning in the summer of 2001, went according to plan, except we were only able to obtain <br />six pounds of Douglas Fir seed, which was broadcast in April, 2002 on a portion of the area <br />which was to receive 20 lbs. of seed. The second phase of work began in the summer of 2002 <br />and was documented in our 2002 annual report. The second phase did not require Douglas Fir <br />seed, but we were still unable to obtain any fir seed to make up for the spring, 2002 shortage. <br />The third phase of the project was not documented in our 2003 annual report, because work <br />was still in progress after the report deadline. Therefore this annual report documents all of the <br />work done in 2003 through October, 2004. <br />In the summer of 2003 approximately eight acres of the original phase 3 area was graded. In <br />November, 2003 the area was reseeded with the seed mix tabulated in Attachment 1. One <br />unforeseen advantage for dividing the project into three phases was the benefit of learnings <br />from previous years. Equipment operators learned how to manage the available quantities of <br />fine material and utilize it as seed bedding. They also learned how to design access for the <br />revegetation contractor yet leave minimal roadways that could be seeded almost as well as the <br />surrounding revegetation areas. Lastly, they became more farniliar with the capabilities and <br />limitations of the revegetation contractor and were able to construct slopes and access for more <br />effective application and usually for drill seeding. <br />In the fall and winter of 2003 we were finally able to obtain sufficient quantities of Douglas Fir <br />seed to complete our original plan -- 30 lbs. from Colorado (San Isabel National Forest area) <br />and 20 lbs. from east central Arizona (Apache National Forest area). The two lots of seed were <br />mixed, in case there were differences in germination rate. After research and consultation with <br />Dr. Warren Keammerer it was decided to stratify a thirty pound batch of seed for seeding in <br />spring, 2004. The seed was soaked in fresh water for two days, placed in plastic bags, and <br />stratified in a refrigerator at 35-40°F for 45 days. The remaining, non-stratified seed was stored <br />for planting in fall, 2004 <br />In May, 2004 the stratified Douglas Fir seed was hand broadcast at a rate of 2-5 lbs./ac. in the <br />areas originally intended for fir seeding in spring, 2002. No fertilizer was used, but the areas <br />seeded were gently raked in order to provide 0.5-1" of cover. The fraction of pure live seed <br />from either of the seed sources is unknown, but the seed was freshly gathered in fall, 2003. <br />