2008-05-15_REPORT - C1980006 (3)

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Marr Mine and Loadout March 12, 2008 2007 Reclamation Report 7.0 DRAINAGE AND SEDIMENT CONTROL Kerr conducts regular routine inspection and maintenance for all ponds, ditches and other drainage and sediment control structures. The minor disturbance associated with routine maintenance and repair of drainages and terraces in 1999 and the 4 areas of rilling and gullying required minor repair, clean-out, and inter-seeding during 2003. There were no repairs or maintenance activities required in 2004. Repair or maintenance activities associated with the drainage and sediment control structures in 2005 included new rock dams and contour furrow work. During 2006, the entrance road was bladed from the shop area to the main entrance gate and the road ditch was maintained where needed. Additional contour furrows were installed on the east facing slope directly west of the shop facilities to control rill forming and run off on the slope. The new furrows were wheel compacted and hand inter-seeded with the approved permanent seed mix. During September 2007, rills & gullies were repaired by reshaping the gullies and installing Curlex fabric blankets to control erosion. Following installation, the sites were regraded, interseeded with the approved permanent seed mix and wheel compacted. Location of the repair work was on the south facing slope of the Marr Pit in the Pond D drainage area and on the south facing slope above and to the north of Pond A. Pond inspections were completed for the first 3 quarters of the year. Inspections certified by a Professional Engineer registered in Colorado were completed in September & October, 2007. Based on inspections, the surface water control structures were generally in good condition. Approval to retain Pond F as a permanent structure was finalized during 2007. 8.0 TOPSOIL STOCKPILES There were approximately 3.0 acres of topsoil stockpiles remaining at the Mine Area. The topsoil piles for Ponds C and G were used to reclaim those ponds in 2006 (2.74 acres). 9.0 SURFACE FACILITIES During 2007, Kerr submitted a final bond release request to the DRMS for those areas at the mine that are qualified for the Ten Year Reclamation Liability Period (timely qualified to be released). The release request is pending approval. During 2002, Kerr coordinated with the DRMS, BLM, and OSMRE to identify, plug, seal, and reclaim a number of old exploration boreholes and alluvial monitoring wells, primarily in the Kerr North Lease Area north of County Road 12E. This work was completed in October 2002. The annual inspection of the existing 8 groundwater/spoil monitoring wells was completed during 2007. All wells were noted in good condition with no need for repairs. 10.0 LOADOUT AREA Final reclamation activities were completed for the Loadout Area (approximately 7 acres) during 1999. The Loadout Area was re-seeded in October 2000 and good growth was evident during the bond release inspection in May 2001. During the fall of 2007, willows were removed from the Tipple pond's emergency spillway and the road ditch along the entrance road was regraded and cleaned. 4