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March 2008 Hayden Gulch Terminal, Inc. * Hayden Gulch L.aadout - 2007 Aunual Beclamation Report ~ Page 1 <br />1.0 INTRODUCTION <br />This Annual Reclamation Report summarizes reclamation activities completed during the 2007 <br />calendar year at the Hayden Gulch Loadout, Permit C-92-081. The report provides supplementary <br />information to the Colorado Division of Reclamation Mining and Safety's (CDRMS) reclamation <br />report form. 'The reclamation data is submitted to fulfill the requirements of Rule 2.04.13. <br />The Hayden Gulch Loadout is located on private and state lands in Routt County, Colorado. The <br />legal description of the lands included within the permit area is: <br />Portions of E/2, Section 10 <br />Portions cif W/2, Section 14 <br />Portions of E/2 E/2, Section 15 <br />Portions of NE/4, Section 22 <br />Portions of NW/4, Section 23 <br />Township 6 North, Range 88 West, of the 6"' Principal Meridian <br />The Hayden Gulch Loadout is a coal handling facility and rail spur. No coal has been or is <br />proposed to be mined within the permit area. <br />The CDRMS issued Coal Mining Permit C-92-081 to Hayden Gulch Terminal, Inc. for the <br />Hayden Gulch Loadout on May 22, 1993. Successive renewals were issued on May 23, 1998 and <br />May 22, 2003. HGTI has posted a Corporate Surety for $1,084,161.00 with the CDRMS to cover <br />the outstanding reclamation liability. Approximately 97 acres, of a possible 105.5 permitted acres, <br />were disturbed during the construction of the facility area and rail spur. None of the disturbance <br />area has been released from reclamation liability. <br />HGTI submitted Technical Revision No. 6 (TR-06) to the CDRMS on November 30, 2004. The <br />technical revision modified the coal handling process, converting the facility from a rail Loadout <br />operation to a rail unloading and truck Loadout operation. CDRMS issued its proposed decision to <br />approve TR-06 on June 15, 2005. <br />However, due; to changing market conditions, HGTI never implemented the facility modifications <br />approved by TR-06. The permit reverted to temporary cessation on August 30, 2005. <br />On March 28, 2007, HGTI submitted Minor Revision No. 15 (MR-15) to CDRMS which <br />described the placement of a temporary mobile office trailer at the existing facilities area. The <br />CDRMS issued its decision to approve MR-15 on April 9, 2007. The mobile office trailer is <br />located on a portion of the existing parking lot area, which is permitted as disturbed. There was <br />no increase in the disturbance area as a result of the placement of the mobile office trailer. <br />Hydro-Environmental Solutions, Inc. <br />P.O. Box 772996 <br />57 >Orn Street, Suite B <br />SteamGoat Springs, CO 80477 <br />970-871-6125 <br />