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rado Consultants. In Geotechnical /Environmental Engineering • Materials Testing Re: Ker Coal Company - Marr Mine and Loadout Permit No. C-80-006 2005 Annual Reclamation Report Dear Mr. Bumell, April 11, 2006 Mr. Jim Bumell Division of Minerals & Geology 1313 Sherman Street -Room 215 Denver. Colorado 80203 Project No: 03-6371 RECt~'vE~ APR 12 2006 mon of Minerals and G091G9Y The letter report represents the Annual Reclamation Report (ARR) for~ie year 2005 for the Marr Mine located near Walden, Colorado. The following summarizes site maintenance and reclamation activities that occurred at the Marr Mine and at the associated Loadout during the year 2005 by the Permittee Kerr Coal Company (Kerr}, Kerr relinquished the federal coal lease for the northern portion of the mine property (north of County Road 12E) in July of 2002. Active mining and related activity was suspended and final reclamation activities were initiated in early 1993. Final reclamation of most mine disturbance areas was completed during the period from 1993 through 1996. Disturbance areas recaimed in 1999 incuded the Loadout Area, a portion of the shop/warehouse facilities pad and the former powder magazine area, soil stockpile area and associated road. All anus reclaimed in 1999, except the Loadout, were initially seeded to the annual rye mulch crop followed by the permanent revegetation seeding in 2000. The Loadout was seeded to the permanent revegetation seed miMure. Areas identified during the 2001 bond release inspections as presenting erosion or revegetation concerns were repaired and reseeded to control erosion (in 2001). Inspection of these areas in early 2002 indicated limited vegetative growth, so additional seed was inter-seeded into the existing vegetation (in 2002 and 2003). No reclamation work (maintenance or repairs) was required or conducted in 2004. The maintenance and repairs for 2005 are described herein. We have been reviewing the details of the acreage information and propose to present updated numbers which we believe can be supported and ultimately used in preparing for final bond release. The total disturbed area for the Mine and Loadout is approximately 401.4 acres, consistent with the figure previously reported. Kerr has reclaimed 357.1 acres to date but 8.5 acres were overlapping into other footprints and counted twice. We believe that approximately 348.6 acres have been reclaimed to date with 8.1 acres remaining to be reclaimed. It is estimated that 44.7 acres will ultimately cover the permanent features. Additional information is provided below in Section 14.0. As part of Kerr's regular site maintenance activities, surtace water control structures were inspected. Any concerns noted by the Division of Minerals and Geology (DMG) in their regular site inspection reports were considered. Based on inspection, the surtace water control structures were found to be generally in good condition. The repairs or maintenance activities completed in 2005 included installation of several rock check dams, adding rip rap in specific areas, constructing, repairing and/or cleaning several contour furrows. Details of these activities are included in the report. Aggressive noxious weed control measures were implemented in 2000 in several areas to control and eliminate localized weed infestations. These measures have generally been effective. Activities (970) 879.7888 • Fax (970) 879-7891 2580 Copper Ridge Drive • Steamboat Springs, CO 80487