2008-05-15_REPORT - C1980006 (3)

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Marr Mine and Loadout 2007 Reclamation Report 11.0 GRAZING March 12, 2008 Kerr obtained prior approval from DRMS for grazing. In 2003 and 2004, 500 head of cattle were grazed on the mine land. In 2005 and 2006, the grazing schedule was modified due to the year 9 and 10 vegetation study being conducted in the area so there was no grazing on the Mine area during those years. During 2007, given the anticipation of a bond release inspection for the site, Kerr did not schedule grazing so as to not impair the vegetation status. 12.0 REVEGETATION SUCCESS EVALUATION Revegetation success sampling was completed in 1999 on the pre-1986, 1995, and 1996 reseeded areas. The results of this sampling are contained in a report prepared by ESCO Associates Inc. dated February 2000. This evaluation included cover, annual production, shrub density and species diversity/composition. Based on the sampling results, revegetation in these areas satisfies the applicable revegetation success standards except for cover or shrub density in the pre-1986 reclamation area. Kerr conducted managed grazing operations on reclaimed areas and subsequently completed year 9 revegetation success monitoring in 2005 and year 10 in 2006. Results of the studies show that success has been achieved on those areas that qualify for the Ten Year Reclamation Liability Period. Copies of the studies, "Kerr Coal Company Revegetation Monitoring Report (2005 & 2006)" are on file with the DRMS. 13.0 BOND RELEASE Phase 1 bond release for the 720 Pit was approved in 1995 (173 acres) and for the Pit 1 in 1996 (48 acres). These areas were initially submitted in the same bond release application but were separated into different requests. An application for Phase I release for the Loadout Area and Phase II release for the 720 Pit and Pit 1 Areas was filed with the DRMS in SL-02. Following the bond release inspection, DRMS approved the application for partial bond release on June 26, 2001. These areas included 6.9 acres for the Loadout (Phase I) and 169 acres for the 720 pit and Pit 1 (Phase II). Apparently 3.6 acres within Pit 1 were excluded from the release due to poorer vegetation status. An application for Phase 1 bond release was filed with the DRMS in May 2001 for the Marr Pit Area (pre-1986 reclamation). DRMS approved the Phase I release in June 2002 for 96.5 acres, although the Marr Pit is not included in the bond estimates so no funds were actually released due to the pre-1986 status. According to the documents reviewed, 324 acres have been released from Phase I and 169 acres for Phase II as stated in the Division's Findings (06-20-01). 14.0 TOTAL DISTURBANCE SUMMARY The following table summarizes the total disturbance at the Marr Mine and Loadout including the reclaimed areas, areas to be reclaimed and the permanent facilities.