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Marr one and Loadout 2005 Reclamafio~ Report 12.0 REVEGETATION SUCCESS EVALUATION April 11, 2006 Revegetation success sampling was completed in 1999 on the pre-1986, 1995, and 1996 reseeded areas. The results of this sampling are contained in a report prepared by ESCO Associates Inc. dated February 2000. This evaluation included cover, annual production, shrub density and species diversity/composition. Based on the sampling results, revegetation in these areas satisfies the applicable revegetation success standards except for cover or shrub density in the pre-1986 reclamation area. Kerr has continued managed grazing operations on reclaimed areas and anticipates that the combination of grazing, progressive vegetative establishment from the initial revegetated community, and natural re-invasion will enhance cover and shrub density. Kerr completed year 9 revegetation success monitoring in 2005 and year 10 is scheduled to be completed in 2006. 13.0 BOND RELEASE Phase 1 bond release for the 720 Pit was approved in 1995 (173 acres) and for the Pit 1 in 1996 (48 acres). These areas were initially submitted in the same bond release application but were separated into different requests. An application for Phase I release for the Loadout Area and Phase II release for the 720 Pit and Pit 1 Areas was filed with the DMG in SL-02. Following the bond release inspection, DMG approved the application for partial bond release on June 26, 2001. These areas included 6.9 acres for the Loadout (Phase I) and 169 acres for the 720 pit and Pit 1 (Phase II). Apparently 3.6 acres within Pit 1 were excluded from the release due to poorer vegetation status. An application for Phase 1 bond release was filed with the DMG in May 2001 for the Marr Pit Area (pre-1986 reclamation). DMG approved the Phase I release in June 2002 for 96.5 acres, although the Marr Pit is not included in the bond estimates so no funds were actually released. According to the documents reviewed, 324 acres have been released from Phase I and 169 acres for Phase II. 14.0 TOTAL DISTURBANCE SUMMARY The following table summarizes the total disturbance at the Marr Mine and Loadout inGuding the reclaimed areas, areas to be reclaimed and the permanent facilities. SUMMARY OF DISTURBANCE Mine Area Reclaimed 10 ears or less 233.5 ac Reclaimed greater than 10 ears 108.2 ac Areas to be Reclaimed 7.9 ac Areas A roved as Permanent 36.1 ac Areas Pending Permanent 4.0 ac MINE TOTAL 389.7 acres Loadout Area Reclaimed 10 ears or less 6.9 ac Areas to be Reclaimed ( and 0.2 ac Areas Approved as Permanent 4.6 ac LOADOUT TOTAL 11.7 acres 63712005!2005 annual recl rytfnl NWCC INC. Pages