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Logan Wash Mine Annual Report
<br />Permit No.: M-1977-424
<br />Current plans are for these areas to be released from the mine permit and incorporated into a
<br />Colorado Oil and Gas Conservation Commission (COGCC) Application Permit to Drill (APD)
<br />submitted by OXY-USA. OXY-USA intends to construct a gas well on the Lower Bench and has
<br />acquired a BLM right-of-way to access the well by way of the Upper Access Road and the Lower
<br />Bench Road. However, a date for construction of a drill pad on the Lower Bench has not been
<br />established. A memorandum of understanding between OOSI and OXY-USA stipulates that
<br />reclamation of the entire Lower Bench, the Lower Bench Road, and the Upper Access Road will
<br />be the responsibility of OXY-USA. Future reclamation requirements for OXY-USA will likely be
<br />defined in an agreement with DRMS and the COGCC. In addition, any other disturbance of
<br />previously reclaimed areas within the mine permit area will be repaired and reclaimed by OXY-
<br />USA under COGCC regulations. OOSI and OXY-USA will provide DRMS with required
<br />documentation of this change in land use and permit jurisdiction as agreements and other permits
<br />are finalized. Should OXY-USA decide not to construct a well on the Lower Bench, then OOSI
<br />will reclaim the Lower Bench at a suitable time (pending a final resolution of retort water
<br />treatment or management).
<br />OOSI anticipates requesting release of warranty for Areas 1 (12.36 acres), 2 (0.74 acres), 4 (4.26
<br />acres), and 10 (0.24 acres), the revegetated portions of Area 13 (1.26 acres), the "Lower Dump
<br />Toe" (estimated to be 1.64 acres), and the Soil Barrow Area (0.65 acres) by Fall of 2009. These
<br />areas total approximately 21.1 acres. OOSI does not expect to reclaim Area 23, the evaporation
<br />pond and pipeline, in the near future as retort water management and treatment are being
<br />evaluated.
<br />On August 29`", 2005, DMG conducted a site inspection of lands meeting reclamation
<br />requirements. On January 12'h, 2006, DMG released OOSI from further reclamation
<br />responsibility for Areas 6, 8, 9, 12, 14, 15, 16, 17, 19, 20 and a portion of Area 13 (roads).
<br />3.0 Monitoring Activities in 2008
<br />Monitoring activities at the Logan Wash Mine during the reporting period consisted of periodic
<br />monitoring of mine water discharge and related sampling activities when necessary. These
<br />activities included (1) required flow monitoring and sampling of two National Pollution
<br />Discharge Elimination System (NPDES) outfalls on weekly, monthly, and quarterly schedules,
<br />(2) measurement of flow rates of the mine-water discharge and retort-water discharge on a
<br />quarterly basis, and (3) measurement of the manometer installed in the Research Mine.Vault.
<br />Monitoring data are shown in Table 4.
<br />3.1 NPDES Outfall Sampling
<br />Two NPDES outfalls, administered by the Colorado Department of Public Health and
<br />Environment (CDPHE), were monitored in accordance with permit-established schedules.
<br />Outfall 001 (Logan Wash Mine, main lower portal [L-1 Portal] discharge) and Outfall 002
<br />(Research Mine discharge) are to be monitored weekly for pH, flow rates, total dissolved solids
<br />(TDS), and total suspended solids (TSS); monthly for TDS, TSS, pH, nitrate, sulfate, fluoride,
<br />ammonia, COD, boron, oil and grease, and phenols; and quarterly for TDS, TSS, pH, nitrate,
<br />sulfate, fluoride, ammonia, COD, boron, arsenic, copper, lead, oil and grease, and phenols.
<br />Monitoring is required at Outfall 001 when mine-water drainage from Logan Wash mine reaches
<br />a flume in "Dry Gulch" at the OOSI and BLM property boundary. Prior to 2005, monitoring was
<br />required at Outfall 002 when flow was present in a pipe discharging mine water from the
<br />Research Mine near the portal entrance. In the summer of 2005, OOSI constructed a mine
<br />Western Water & Land, Inc. 4
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