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Kerr (Marr) Mine - 2008 Annual Hydrology Report <br />1.0 OPERATIONAL CONDITIONS <br />Active mining and coal production operations at the Marr Mine ceased in January 1993. During the <br />active life of the mine, mining operations occurred in three areas; the Marr Pit, 720 Pit, and Pit 1. <br />Mining was completed and most of the associated disturbance in the Marr Pit area was reclaimed <br />during the period from 1979 through 1983. Contemporaneous reclamation occurred as mining <br />progressed and the remainder of the 720 Pit and Pit 1 areas were backfilled and reclaimed during the <br />period from 1993 through 1996. Reclamation of the mine surface facilities that will not be retained as <br />permanent facilities to support the post-mining land use and the associated coal Loadout facility was <br />completed in 1999. A spoil monitoring well (SP-01) was installed at the north end of the 720 Pit area in <br />2001. The only ongoing activities for the sites are site maintenance, environmental monitoring, and <br />reclamation permit compliance activities. Kerr Coal Company (Kerr) in cooperation with the Colorado <br />Department of Natural Resources Division of Reclamation, Mining and Safety (DRMS), the United <br />Stated Department of the Interior Bureau of Land Management ($LM) and the Office of Surface Mining, <br />Reclamation and Enforcement (OSMRE) completed a program during 2002 to identify, plug, seal, and <br />reclaim a number of old exploration boreholes and shallow alluvial monitoring wells in the Kerr North <br />Area, north of the County Road. In 2006, Pond C (CDPS #303) and Pond G and their associated soil <br />stockpiles and ditches were reclaimed. Pond F was recommended for permanent status in 2006 and <br />the decision was approved in 2007. In 2007 (TR-23) Kerr recommended that all surface, groundwater <br />and vegetation monitoring at the mine be revised (terminated) because all the requirements of the <br />permit had been met. Subsiquently,TR-23 was approved. <br />2.0 BOND RELEASE <br />Kerr submitted a bond release request to the DRMS on September 6, 2007. Bond Release Request No. <br />4 (SL-04) requested release of Phases I, II and III of the majority of areas at the mine site as specified <br />in the request. Excluded were two parcels (approximately 4 acres each) located east and south of the <br />shop facilities that were not yet eligible for release due to timing of the 10 year reclamation liability <br />period and so were not released. <br />Prior to approval of the bond release request, the former water monitoring wells located at the mine site <br />were sealed and reclaimed during October, 2008. The wells are identified as: 79-1; 79-2; 79-3; 79- <br />61 and AO-2A. The Spoil Well, SP-01 (former monitoring well) was converted to a Stock Watering Well <br />at the request of the landowner and approval of the Colorado Water Division and the DRMS. Locations <br />of the wells are shown on Map 1, Mine Area Monitoring Stations. <br />Approval of the bond release (SL-04) became final on January 5, 2009 as approved by the DRMS and <br />with concurrence of the respective agencies, OSM and the t3LM. The Loadout Site, south of the town <br />of Walden is not yet eligible for bond release due to the timing of the reclamation liability period and will <br />continue to be monitored as required. <br />Kerr Mine/Al-111 2008 Page 1