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Logan Wash Mine Annual Report
<br />Permit No.: M-1977-424
<br />Wells
<br />Past reconnaissance efforts for well sites constructed in support of mine operations were
<br />conducted within the permit area and within Logan Wash. Eight wells were identified within this
<br />area. Of the 8 identified wells, one well, Well LWCW-lA, will remain in place as a compliance
<br />well until final closure. Wells LW-108, LW-112, and LW-242 were abandoned in 2005
<br />accordance with Colorado Division of Water Resources rules.
<br />The other 4 wells, LW-32, LW-45, LW-116, and LW-22, are scheduled to be abandoned in 2008.
<br />Reconnaissance to date has not revealed any other monitoring wells within the permit area and
<br />the Logan Wash drainage.
<br />Reconnaissance for wells located outside the permitted area in distant drainages was conducted
<br />during this reporting period. Wells LW-102 and LW-243 were located in Smith Gulch, Well
<br />LW-103 was located in Kelly Gulch, and Well LW-104 was located in Riley Gulch. Well LW-
<br />121, apparently constructed in Bowdish Gulch, has not been field located because of access
<br />issues. Table 3 shows the well abandonment status as of this reporting period.
<br />2,4 Status Summary
<br />Areas remaining in the permit include Areas 1, 2, 3, 4, 10, portions of Area 13; and the 0.65 acre
<br />Soil Barrow Area. Areas 1 through 4 include the Upper and Lower Mine Dumps (face areas),
<br />Upper Mine Bench, Lower Mine Bench, and the Research Mine Bench and Dump, respectively.
<br />Area 10 is the former Helo Pad. Area 13 is Miscellaneous Access Roads.
<br />Area 13, Miscellaneous Access Roads (Table 2), includes a number of older roads that have been
<br />reclaimed. In this report, the Mine Bench and Portal roads referred to in Table 2, consist of the
<br />Lower Access Road (1.0 acres), Upper Access Road (5.3 acres), Upper Bench Road (1.4 acres
<br />including bench), and Lower Bench Road (0.9 acres not including bench). Area 1, the Upper and
<br />Lower Mine Dump faces (12.36 acres) were revegetated during 2003-2005. Area 2, the Upper
<br />Mine Bench (0.74 acres) was revegetated in 2004 and 2005. Area 4, the Research Mine Bench
<br />(2.75 acres) and Dump (1.51 acres), Area 10, the former Helo Pad (0.24 acres), and the Upper
<br />Bench Road and Lower Access Road areas of Area 13 were revegetated in the fall of 2005. In
<br />addition, the toe of the Lower Dump (1.64 acres) was identified as an area requiring reclamation
<br />after a major storm event in 2004 deposited debris flow material from the Lower Dump at the toe
<br />of the dump; this area was revegetated in 2005.
<br />Areas not expected to be reclaimed under the mine permit are the Lower Bench (Area 3, 2.1
<br />acres), the Lower Bench Road (Area 13, 0.9 acres), and the Upper Access Road (Area 13, BLM
<br />"tramroad" right-of--way, 5.3 acres). These areas comprise a total of approximately 8.3 acres.
<br />Current plans are for these areas to be released from the mine permit and incorporated into a
<br />Colorado Oil and Gas Conservation Commission (COGCC) Application Permit to Drill (APD)
<br />submitted by OXY-USA. OXY-USA intends to construct a gas well on the Lower Bench and has
<br />acquired a BLM right-of--way to access the well by way of the Upper Access Road and the Lower
<br />Bench Road. However, a date for construction of a drill pad on the Lower Bench has not been
<br />established. A memorandum of understanding between OOSI and OXY-USA stipulates that
<br />reclamation of the entire Lower Bench, the Lower Bench Road, and the Upper Access Road will
<br />be the responsibility of OXY-USA. Future reclamation requirements for OXY-USA will likely
<br />be defined in an agreement with DRMS and the COGCC. In addition, any other disturbance of
<br />previously reclaimed areas within the mine permit area will be repaired and reclaimed by OXY-
<br />Western Water 8~ Land, Inc. 3
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