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Marsh 2003 Hayden Gukh Mine 2002 Annual Redamatian and Hydrology Report 1 Page 1.0 INTRODUCTION This Annual Reclamation and Hydrology Report includes reclamation and hydrologic monitoring data collected during 2002 at the Hayden Gulch Mine. The reclamation data is submitted to fulfill the requirements of Rule 2.04,13. As part of the Phase II/Phase III bond release findings in 1999, the Colorado Division of Minerals and Geology (CDMG) indicated that hydrologic monitoring was no longer necessary at the Hayden Gulch Mine. Consequently, the operator at that time, H-G Coal Company (HGCC) ceased the collection of hydrologic data in 1999, and therefore, there was no hydrologic data collected in 2002. Ownership and operation of the Hayden Gulch Mine, Permit No. C-80-003, was transferred from H- G Coal Company to Hayden Gulch Terminal, Inc. (HGTI) in December 2002. On December 17, 2002, the CDMG issued its proposed decision to approve Transfer of Permit No. ]. A copy of CDMG's proposed decision to transfer the permit to HGTI is presented in Exhibit 1. The CDMG also released HGCC's coal reclamation bond, in the amount of $27,437.27 on December 17's and replaced it with a Corporate Suzety for the $27,437.27 in the name of HGTI. With CDMG's proposed approval of the permit transfer and the release of HGCC's bond, HGCC conveyed surface title of the Hayden Gulch Mine to HGTI via a Special Warranty Deed executed on December 20, 2002. The CDMG approved a Phase II/Phase III bond release request in July 1999. The Phase II/Phase III bond release reduced the permitted acres ffom 1,269 to 8.9 acres. The 1999 permit boundary is shown on Figute 1. In addition to reducing the permitted aces as pazt of the Phase II/Phase III bond release findings, the CDMG also released the Hayden Gulch Mine from hydrologic monitoring requirements. A copy of CDMG's.letter approving the discontinuation of the Hayden Gulch Mine hydrologic monitoring program is included as Exhibit 2. Based upon the CDMG's finding that there was no technical basis for further hydrologic monitoring, and that vegetation was the primary sediment control technology, HGCC (the operator as of 1999) submitted a request to the Colorado Division of Public Health and Environment to discontinue the Colorado Dischazge Permit System (CDPS) monitoring requirements. The request to discontinue the CDPS monitoring requirements was submitted to the CDPHE on September 1Q 1999. The CDPHE approved HGCC's request de-activating the CDPS permit in a letter dated October 29, 1999. A copy of CDPHE's approval to de-activate the CDPS permit is included as Exhibit 3. As no[ed above, both CDMG and CDPHE have released the Hayden Gulch Mine of previous hydrologic monitoring requirements. Consequently there was no hydrologic monitoring at the mine during calendaz yeaz 2002, and therefore this report does not contain any hydrologic monitoring information. MWH * P.O. Bax 774018 * Steamboat Springs, Colorado 80477 * (970) 879-6260 u,~uv,~y.crs raevw.otssnxaz.eexR ononoid