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8. Permit page 2.05-8 states that Colowyo will sample the regraded spoil on 500- foot centers (approximately one sample every five acres). The text in the PAP commits Colowyo to sampling regraded spoil prior to topsoil replacement. The Annual Reclamation Report form states that 79.3 acres were topsoiled in 2005. Based on the information contained in Exhibits 8C and 8D, Colowyo performed six regraded spoil samples. Based on the commitment to take one sample every 5 acres, it appeazs as though Colowyo should have taken approximately 16 samples. Please provide an explanation as to why Colowyo did not meet its regraded spoil commitment contained in Exhibit 6 and Pages 2.05-8 and 2.05-9 of the PAP. Colowyo's Response: Colowyo's regraded overburden sampling program sent in 21 samples during the 2004-1005 time period. During that period of time, approximately 97 acres were reclaimed. A significant portion of the area topsoiled in 2005 was regraded overburden sampled during 1004. Colowyo met its regraded spoil commitment for 2005 as contained in Exhibit 6 and Pages 2.05-8 and 1.05-9 of the PAP. As such, Colowyo feels this issue is resolved and requires no further action. Section 9 of the Annual Reclamation Report contains detailed information regarding second, forth and seventh yeaz vegetation monitoring for the East Pit, West Pit and Section 16 Pit. Attached is a chart that details the reclamation units that have not undergone any type of phased bond release to date. One note of interest is that there are approximately 627.27 acres that have been backfilled and regraded and meet the criteria for application for a Phase I Bond Release. There are 161.58 acres that have been reclaimed for five-years or more and may be eligible for a Phase II Bond Release. Finally, not including the azeas that have been approved for a Phase II Bond Release, there are 131.08 acres that have been reclaimed for at least 10 years, making them potentially eligible for an application for a Phase III Bond Release (following two final yeazs of successful vegetation monitoring). There aze, however, two main issues that Colowyo needs to address before proceeding with a Phase III Bond Release application. First, the areas that meet the time requirement for a Phase III Bond Release do not meet the shrub density standard in the PAP. Second, these areas may not meet the vegetative diversity standazd in the PAP. Please refer to the Division's 4 August 2006 letter regazding the 2004 Annual Reclamation Report -Vegetation Data Review for more information. A copy of the letter is attached. The Division would like to encourage the Colowyo Mine to apply for a phased bond release on all of the eligible areas.