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Logan Wash Mine Annual Report <br />Permit No.: M-1977-424 <br />OOSI does not intend to reclaim the Evaporation Pond (10 acres) as it is necessary for the <br />management of retort drainage water from the mine. <br />On September 5, 2007, Mr. Smith submitted OOSI's response to DRMS adequacy items <br />concerning Amendment No. 1 for the Logan Wash Mine Permit No. M77-424. This letter <br />addressed the specific adequacy items in the December 1, 20061etter from Mr. Steve Shuey of <br />the DRMS. DBMS responded (letter dated Oct. 31, 2007) to OOSI's response for DRMS' <br />Second Adequacy Review of the Logan Wash Mine Amendment No. 1. DRMS indicated that all <br />issues but issue no. 5 were acceptable. DRMS requested that OOSI submit an alternate plan for <br />the Logan Wash Mine that will result in no discharge of retort water from the mine, or an <br />alternative treatment of the retort water that will allow reclamation of the Evaporation Pond and <br />associated pipeline. <br />7.0 Anticipated Disturbance in the Year 2008 <br />No new disturbance is anticipated to occur in 2008 within the mine permit area associated with <br />OOSI mine permit activities. <br />Western Water 8 Land, Inc. 7 <br />