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Marr (Nine and Loadout April 11, 2006 <br />2005 Reclamation Report <br />completed in 2004. Repair or maintenance activities associated with the drainage and sediment <br />control structures in 2005 included new rock dams and contour furrow work as fisted below. <br />• Kerr installed 3 rock check dams in the east flowing drainage just south of the entrance <br />gate, east of the road as indicated on Drawing 1. <br />• Three contour fumows(16 Inches deep and 25 feet long) were constructed on the south <br />facing slope in the Marr Pit west of the spoil well SP-01. <br />• Kerr cleaned and repaired several contour furrows on the southeast slope northwest of <br />Pond A <br />• In Ditch PD-1, Kerr constructed 2 rock check dams and placed riprap in 2 areas just <br />north of well 79-1. <br />Pond inspections were completed for the first 3 quarters of the year. An inspection certified by a <br />Professional Engineer registered in Colorado was completed in August, 2005. The 4`h quarter <br />inspection was not feasible or warranted due to inaccessible conditions and frozen ponds. Based on <br />inspections, the surface water control structures were generally in good condition in 2005. In 2004, <br />the BLM indicated a desire to retain either of the ponds F or G as permanent structures to support <br />the proposed post-mining land uses. Kerr has submitted a Permanent Pond demonstration for Pond <br />F. <br />8.0 TOPSOIL STOCKPILES <br />There are approximately 3.0 acres of topsoil stockpiles remaining at the Mine Area. No material <br />removal or reclamation was conducted in these areas in 2005. <br />9.0 SURFACE FACILITIES <br />As shown on the 2005 Mine Area Recamation Map, the remaining long term or permanent facilities <br />(roads, buildings, and ponds) in the Mine Area cover approximately 41 acres, including those <br />pending final approval. Permanent facilities in the Loadout Area cover approximately 5 acres for a <br />total of 46 acres. <br />During 2002, Kerr coordinated with the DMG, BLM, and OSMRE to identify, plug, seal, and reclaim a <br />number of old exploration boreholes and alluvial monitoring wells, primarily in the Kerr North Area <br />north of the County Road. This work was completed in October 2002. The annual inspection of the <br />existing 15 groundwater/spoil monitoring wells was completed in April 2005. All wells were noted in <br />good condition with no need for repairs identified. <br />10.0 LOADOUT AREA <br />Final reclamation activities were completed for the Loadout Area (approximately 7 acres) during <br />1999. The Loadout Area was re-seeded in October 2000 and good growth was evident during the <br />bond release inspection in May 2001. No maintenance or repairs were waranted in the Loadout <br />Area in 2004 or 2005. The access road, shop and warehouse area are considered permanent. <br />11.0 GRAZING <br />Kerr obtained prior approval from DMG for grazing. In 2003 and 2004, 500 head of cattle were <br />grazed on the mine land. In 2005, the grazing schedule was modified and due to the year 9 <br />vegetation study being conducted in the area, there was no grazing on the Mine area. No grazing is <br />planned for 2006 as well. <br />637120052005 annual recl rpt fnl NWCC INC. Page4 <br />