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March 2008 Hayden Gulch Terminal, Inc. * Hayden Gulch Mine - 2007Annual Reclamation Report ?Page 3 <br />Approximately 69.4 acres of the 97 disturbed acres have been seeded with Seed Mix No. 4 <br />(temporary stabilization mix). Included in this acreage are the facilities area, the three <br />topsoil stockpiles and the railroad spur and loop alignments as shown on Figure 1. The <br />temporary stabilization seeding was completed in conjunction with facilities construction <br />activities (circa 1979/1980) by H-G Coal Company, the previous owner/operator/ <br />permittee. <br />2.2 WEED CONTROL <br />The permit area was surveyed for noxious weeds in 2007 to determine the need or level of <br />retreatment for previously treated areas. Canada thistle (Cirsium arvense) and Houndstongue <br />(Cynoglossum officinale) were the primary target species of control, however, yellow toadflax <br />(Linaria vulgaris), Dalmatian toadflax (Linaria genistifolia), hoary cress (Whitetop, Cardaria <br />draba) and leafy spurge (Euphorbia esula L.) were also identified and treated. Figure 1 shows the <br />noxious weed infestation areas that were treated in 2007. <br />The applied herbicide consisted of a tank mix of 0.5 gallons of Tordon 22K and, either 0.5 gallons <br />of 2,4-D or 4 ounces of Milestone with 16 ounces of Activator 90 and 50 gallons of water. <br />Control areas were sprayed in June and, then again in September. A spot spray gun was used to <br />concentrate control activities on target areas, reducing potential impacts to adjacent desirable <br />vegetation. The weed control areas will continue to be monitored in 2008 for effectiveness and <br />necessary retreatment. <br />2.2 GROUNDWATER WELL ABANDONMENT <br />HGTI abandoned groundwater monitor wells HGDALI and HGDAL2 in September 2007. The <br />wells were abandoned in accordance with the rules and regulations of Colorado Division of Water <br />Resources and Rule 4.07.3 of the Regulations of the Mined Land Reclamation Board for Coal <br />Mining. Abandonment reports were submitted to both CDRMS and CDWR, as well as inserted <br />into the Permit Application Package (PAP) in accordance with MR-16. <br />The CDRMS requested clarification on the status of Well 22772-F in a letter to HGTI dated <br />August 17, 2007. Well 22772-F was permitted through CDWR and drilled by H-G Coal <br />Company, the previous owner/permittee/operator of the Hayden Gulch Loadout. HGTI reviewed <br />CDWR files, as well as internal project files for permit, completion, etc. forms and supporting <br />documentation for this well.. The CDWR files indicated that Well 22772-F was abandoned <br />sometime during 1980 and replaced with Well 24576-F (H-G Shallow Well No.l). HGTI and <br />CDRMS representatives conducted a ground reconnaissance at the Loadout on September 19, <br />2007 in an effort to locate signs of Well 22772-F. An approximate location was identified using <br />distance measurements provided on the Statement of Beneficial Use (dated November 20, 1980). <br />A steel cap, casing and concrete pad were found; the casing was filed with concrete at the ground <br />surface. Mr. Byron Walker, CDRMS's inspector, photo recorded the abandoned well and <br />included the record in the September 19, 2007 Coal Inspection Report. Abandonment <br />documentation for Well 22772-F were inserted into the PAP in accordance with MR-16. <br />Revised 08/08 <br />Hydro-Environmental Solutions, Inc. <br />P.O. Box 772996 <br />57 101h Street, Suite B <br />Steamboat Springs, CO 80477 <br />970-871-6125