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Marr Mine 200472eclamation Report 11.0 GRAZING February 22, 2005 EFCI obtained prior approval from DMG for grazing. In 2003, 500 head of cattle were grazed for only two days in mid-October (10/14-10/15). In 2004, 500 head of Silver Spur cattle were grazed from July 10 to 18. 12.0 REVEGETATION SUCCESS EVALUATION 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, which was forwarded to the DMG. This evaluation included cover, annual production, shrub density and species diversity/composition. Based on the sampling results, revegetation in the 1995 and 1996 reclamation areas satisfies the applicable revegetation success standards. Revegetation in the pre-1986 recaimed area satisfies the applicable revegetation success standards for annual production and species diversity/composition but not for cover or shrub density. Kerr had 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 will continue to monitor revegetation success and will conduct follow-up revegetation success sampling and evaluation to assess the effectiveness of progressive vegetative reestablishment. Year 9 and 10 revegetation success monitoring are scheduled during 2005 and 2006. 13.0 BOND RELEASE An application for partial bond release (Phase I for Loadout Area and Phase II for 720 Pit and Pit 1 Areas) was filed with the DMG in August 2000. A bond release inspection was held on May 22, 2001 and the DMG subsequently approved the application for partial bond release on June 26, 2001. An application for partial liability release was filed with the DMG in May 2001 for the Marr Pit Area (pre-1986 reclamation). The liability release inspection for this area was conducted on September 12, 2001 and the DMG approved the partial liability release in June 2002. 14.OTOTAL DISTURBANCE SUMMARY The following table summarizes the total disturbance at the Marr Mine and Loadout. The lands included in this table are categorized by current use and/or state of reclamation. SUMMARY OF DISTURBANCE Mine Area Rave etated 1999 6.5 Facilities, Roads and Sediment Control 34.6 Topsoil Stock files 3.3 Reclaimed re-1999 345.3 TOTAL 389.7 acres Loadout Area Rave etated 1999 5.3 Facilities, Roads and Sediment Control 6.4 TOTAL 11.7 acres 63712004 annual recl rpt_doc NWCC INC. Page 4