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Marr Mine February 22, 2005 200~Reclamation Report • Bottom of the 720 Pit and Pit 1 reclaimed areas • The ridge on the west side of the 720 Pit • The margins of the shop area • Along the main access road • Along the railroad right-of-way; and • The vicinity of the shop building in the Loadout area. 7.0 DRAINAGE AND SEDIMENT CONTROL Kerr conducts regular routine inspection and maintenance for all ponds, ditches and other drainage and control structures. The minor disturbance associated with routine maintenance and repair of drainages and terraces in 1999 and the 4 areas of rilling and gullying required minor repair, clean-out, and inter-seeding during 2003. Pond inspections were completed for the first 3 quarters of the year. The 4"' Quarter inspection was not feasible or warranted due to inaccessible conditions and frozen ponds. Based on inspection, the surface water control structures were generally in good condition in 2004. The DMG identified minor erosion in the PD-1 and PD-3 drainage channels. Kerr inspected these areas and determined that no immediate maintenance was required. Monitoring and maintenance in these areas will continue. In 2004, after inspection of Ponds F and G, the BLM indicated a desire to retain either of the ponds and/or the associated roads as permanent structures to support the proposed post-mining land uses. Kerr will proceed with evaluation and may prepare appropriated documentations for the request during 2005. 8.0 TOPSOIL STOCKPILES There are approximately 3.3 acres of topsoil stockpiles remaining at the Mine Area. No material removal or reclamation was conducted in these areas in 2004. 9.0 SURFACE FACILITIES As shown on the 2004 Reclamation Map, the remaining permanent facilities (roads, buildings, and ponds) in the Mine Area cover approximately 35 acres. Permanent facilities in the Loadout Area cover approximately 6 acres for a total of 41 acres. Note that Kerr sold a coal drill during 2004. It was removed from its temporary storage location behind the permanent shop/office building. During 2002, EFCI coordinated with the DMG, BLM, and OSMRE to identify, plug, seal, and reclaim a number of old exploration boreholes and alluvial monitoring wells, primarily in the Kerr North Area north of the Gounty Road. This work was completed in October 2002. An inspection of the existing 15 groundwater/spoil monitoring wells was completed in April 2004. All wells were noted in good condition with no need for repairs identified. 10.0 LOADOUT AREA Final reclamation activities were completed for the Loadout Area (approximately 5 acres) during 1999. The Loadout Area was re-seeded in October 2000, and good growth was evident during the bond release inspection in May 2001. No maintenance or repairs were warranted in the Loadout Area in 2004. 6371/2064 annual recl rpt.doc NWCC INC. Page 3