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Febnrary 2006 Hayden Gukh Temriuol, Inc. * Hayden Guleh Loadout - 2005 Annua! Reclamation Report ~ Page 1 <br />1.0 INTRODUCTION <br />This Annual Reclamation Report summarizes reclamation activities completed during 2005 at the <br />Hayden Gulch Loadout, Permit C-92-081. The report provides supplementary information to the <br />Colorado Division of Minerals and Geology's (CDMG) reclamation report form. The reclamation <br />data is submitted to fulfill the requirements of Rule 2.04.13. <br />The Hayden Gulch Loadout is located on private and state lands in Routt County, Colorado. The <br />legal description of the lands included within the permit area is: <br />Portions of E/2, Section 10 <br />Portions of W/2, Section 14 <br />Portions of E/2 E/2, Section 15 <br />Portions of NE/4, Section 22 <br />Portions of NW/4, Section 23 <br />Township 6 North, Range 88 West, of the 6'" Principal Meridian <br />The Hayden Gulch Loadout is a coal handling facility and rail spur. No coal has been or is <br />proposed to be mined within the permit area. <br />The CDMG issued Coal Mining Permit C-92-081 to Hayden Gulch Terminal, Inc. for the Hayden <br />Gulch Loadout on May 22, 1993. Successive renewals were issued on May 23, 1998 and May 22, <br />2003. HGTI has posted a Corporate Surety for $1,079,161.00 with the CDMG to cover the <br />outstanding reclamation liability. Approximately 97 acres, of a possible 105.5 permitted acres, <br />were disturbed during the construction of the facility area and rail spur. None of the disturbance <br />area has been released from reclamation liability. <br />HGTI submitted Technical Revision No. 6 (TR-06) to the CDMG on November 30, 2004. The <br />technical revision modified the coal handling process, converting the facility from a rail Loadout <br />operation to a rail unloading and truck Loadout operation. CDMG issued its proposed decision to <br />approve TR-06 on June 15, 2005. <br />However, due to changing market conditions, HGTI never implemented the facility modifications <br />approved by TR-06. The permit reverted to temporary cessation on August 30, 2005. <br />Hydxo-Envixonmental Solutions, Inc. <br />P.O. Box 772996 <br />SI lO~A Street SuiteB <br />Steamboat Springs, CO 80477 <br />970-871-6725 <br />