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Colowyo Coal Company <br />2008 Annual Reclamation and Hydrology Report <br />9 GENERAL DISCUSSION <br />CDPS Impoundments - During calendar year 2008, the twelve CDPS impoundments <br />were inspected on a quarterly basis. Please refer to Exhibit lA for location of the <br />twelve impoundments. Routine maintenance was performed when necessary during <br />the year. None of the impoundments displayed any structural weakness or otherwise <br />hazardous conditions. Six other non-CDPS impoundments were inspected on a <br />quarterly basis as per guidelines. None of these impoundments displayed any <br />structural weakness or otherwise hazardous conditions. <br />Table 1. Summary of material removed from CPDS impoundments in 2008. <br />AMOUNT OF <br />POND CLEANED OUT MATERIAL REMOVED TIME OF REMOVAL <br />Prospect 3242 cy December <br />Small Impoundments/Livestock Water Tanks - During 2008, the thirteen Livestock <br />Water Tanks were inspected during the third quarter. Livestock Water Tanks are <br />being inspected on an annual basis. The impoundments did not display any signs of <br />structural weakness or otherwise hazardous conditions. <br />During 2006, Colowyo applied for and received a CDPS minimal discharge permit <br />(No. COG-600757). The purpose of this activity was to remove accumulated <br />stormwater runoff that collected in the bottom of the West Pit which contained a <br />significant stockpile of coal. A well respected company, familiar with filtering water <br />to meet NPDES discharge quality standards, was utilized to provide the equipment <br />and filters used to ensure compliance with applicable standards. The filtered water <br />was discharged directly into Upper Taylor Creek using a diffuser to minimize erosion. <br />The system was designed to ensure compliance with Colowyo's current NPDES <br />Discharge Standards. Pumping was concluded in January of 2007 but commenced <br />again in August of 2008 as plans emerged for backfilling and grading of this portion of <br />the West Pit. Pumping was concluded indefinitely in December of 2008 for this area. <br />l`J <br />Page 1-2