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2005 ANNUAL RECLAMATION REPORT • NH1 Farming by adjacent landowners continued as in past years on the 6.4 ac field in the NW portion of the NH 1 Permit Area. The landowner was contacted and stated that a 50/50 mix of fertilizers 18-46-0 and 34-0-0 were applied at a rate of 200 Ibs/acre, than harvested one cutting for approximately 9.0 tons (2,8161bs/acre) of grasshay. Western Fuels applied 34- 0-0 fertilizer to a 45.65 acres parcel at the rate of 100 Ibs/acre. Exhibit 2005-1 shows the locations of the fertilizer applications. Exhibit 2005-1 denotes rates and pasture yields where applicable. For reference, Exhibit 2005-2 shows the pre-1993 disturbance at NH1. Please note that the NH1 boundary changed in 2001 as a result of MR-52. In preparation for bond release, an approximate 10 acre portion of NH1 was evaluated for vegetative adequacy by BIO-Logic (BIO-Logic) Environmental of Montrose, Colorado. BIO- Logic's assessment was that the parcel met the standards. The report is attached as Appendix A; the general study location is shown in Exhibit 2005-2. NH2 Existing Disturbance During 2005, 48.57 acres of new disturbance was associated with the mining program at the New Horizon 2 Mine. 21.08 acres of topsoiled land was seeded with an approved mix. • The 2005 Disturbance and Seeding Maps, Exhibit 2005-12 and 2005-4 respectively, show the areas either disturbed, reseeded, or both, during 2005. An extra 22.02 acres was topsoiled for future seeding (Exhibit 2005-6). Backfilling and Grading During 2005, 29.32 acres (see Exhibit 2005-7) were graded at New Horizon 2. Backfill grading was accomplished by backfilling the empty pit with struck-shovel fleet and then final grading with D-9 dozers and 14G grader. Soil and Spoil Scarification The following soil and spoil scarification techniques were used while grading the reclamation area. Prior to growth media soil replacement, the final graded spoil was scarified to a depth of 6 to 18 inches using ripper shanks attached behind a motor grader or a D-9 or equivalent dozer. This scarifying operation effectively reduced compaction, reduced runoff, and improved infiltration, while improving rooting depths. Soil and Spoil Monitoring Data New Horizon Mine is required by Permit C-81-008 to monitor replaced soil and final graded spoil and submit the information to the Division. Monitoring programs include verifying soil replacement thickness and determining final graded spoil quality. Exhibit 2005-6 depicts topsoil thickness and sample locations. Exhibit 2005-7 depicts backfill spoil sample map and shows subsurtace sample locations. . Sooil Quality The spoil sampling and analysis program approved for New Horizon Mine is described in Section 2.05.4(2)(d)-4 Regraded Spoil Monitoring Program of Permit C-81-008. Four (4)