2009-03-05_REPORT - C1992081 (2)

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S March 2009 Hayden Gulch Terminal Inc. * Hayden Gulch I.oadout - 2008 Annual Reclamation Report ?Page 1 1.0 INTRODUCTION This Annual Reclamation Report summarizes reclamation activities completed during the 2008 calendar year at the Hayden Gulch Loadout, Permit C-92-081. The report provides supplementary information to the Colorado Division of Reclamation Mining and Safety's (CDRMS) reclamation report form. The reclamation data is submitted to fulfill the requirements of Rule 2.04.13. The Hayden Gulch Loadout is located on private and state lands in Routt County, Colorado. The legal description of the lands included within the permit area is: Portions of E/2, Section 10 Portions of W/2, Section 14 Portions of E/2 E/2, Section 15 Portions of NE/4, Section 22 Portions of NW/4, Section 23 Township 6 North, Range 88 West, of the 6`h Principal Meridian The Hayden Gulch Loadout is a coal handling facility and rail spur. No coal has been or is proposed to be mined within the permit area. The CDRMS issued Coal Mining Permit C-92-081 to Hayden Gulch Terminal, Inc. for the Hayden Gulch Loadout on May 22, 1993. Successive renewals were issued on May 23, 1998, May 22, 2003 and May 22, 2008. As part of the third permit renewal (RN-03) review CDRMS determined that the reclamation liability at the Loadout is $1,079,517.00. HGTI has posted a Corporate Surety in the amount of $1,084,161.00 with the Colorado Mined Land Reclamation Board for Coal Mining a Corporate Surety. Approximately 97 acres, of a possible 105.5 permitted acres, were disturbed during the construction of the facility area and rail spur. None of the disturbance area has been released from reclamation liability. HGTI submitted Technical Revision No. 6 (TR-06) to the CDRMS on November 30, 2004. The technical revision modified the coal handling process, converting the facility from a rail loadout operation to a rail unloading and truck loadout operation. CDRMS issued its proposed decision to approve TR-06 on June 15, 2005. However, due to changing market conditions, HGTI never implemented the facility modifications approved by TR-06. The permit reverted to temporary cessation on August 30, 2005. On March 28, 2007, HGTI submitted Minor Revision No. 15 (MR-15) to CDRMS which described the placement of a temporary mobile office trailer at the existing facilities area. The CDRMS issued its decision to approve MR-15 on April 9, 2007. The mobile office trailer is located on a portion of the existing parking lot area, which is permitted as disturbed. There was no increase in the disturbance area as a result of the placement of the mobile office trailer. Hydro-Environmental Solutions, Inc. P.O. Box 772996 57 10th Street, Suite B Steamboat Springs, CO 80477 970-846-5112