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(approximately 8 acres) were broadcast seeded and harrowed. Approximately 20 <br />acres of the recontoured and topsoiled Portland Surface Mine Backfill were seeded and <br />Mr. Berhan Keffelew <br />April 7, 2006 <br />Page 2 <br />harrowed. Both of these areas were seeded with the current reclamation seed mix. A <br />small area (-1 acre) near the Ajax facilities was cleared of debris and reseeded. In <br />addition, a new sediment pond area (-1 acre) in Squaw Gulch was hand seeded with <br />the standard reclamation mix and a turf grass mix. <br />Weed control techniques were implemented within the Cresson Project area in 2005 <br />and will continue in 2006. <br />Per the requirements of C.R.S. 34-32-116(3), and C.R.S. 34-32.5-116(3)(a); <br />Reclamation accomplished to date: Approximately 257.5 acres <br />Reclamation accomplished during the preceding year: Approximately 30 acres total <br />in 2005. <br />New disturbances anticipated during the upcoming year. Continued development <br />of the Main Cresson, East Cresson (including the ECME and Wildhorse areas) and <br />South Cresson, and associated haulroads, sediment control measures, topsoil <br />stockpiles, and other ancillary disturbances required to support these activities. Backfill <br />of the East Cresson Mine will continue in 2006. <br />Reclamation anticipated during the upcoming year: Approximately 20 to 30 acres <br />of miscellaneous sites consisting of topsoil stockpiles, sediment ponds, Dump 5 of the <br />Squaw Gulch Overburden Storage Area, northern backfill slope of the East Cresson <br />Mine, and miscellaneous mining activity areas are planned to be reclaimed this year. <br />Financial Warranty: <br />Per 2CCR 407-1, 407-4, and Rules 1.15(1)(a), Financial Warranty/Letter of Credit No. <br /> from the Dresdner Bank AG, New York Branch, in the amount of <br />$33,331,600.00 replaced the St. Paul Fire and Marine Surety Bond No. for the <br />same amount. The new financial warranty was sent to DMG on July 16, 2004 and the <br />St Paul Fire and Marine bond was release on July 21, 2004. An additional letter of <br />credit (Letter of Credit No. effective Sept 15, 2004 from The Bank of <br />Nova Scotia in the amount of $3,400,000 was accepted by DMG on October 19, 2004. <br />In addition, Liberty Mutual Surety Bond No. was increased to $7,922,273.21 <br />on April 30, 2004. These financial instruments, providing a total financial warranty of <br />$44,653,871.21, have been accepted by the Division and continue to demonstrate the <br />sufficiency of the value of the Cresson Project Financial Warranty. <br />