2009-07-15_REPORT - M1988044 (2)

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Disturbance Category Inventory for 2009 (Corrected Format July 25, 2008) Description of Land Category acres Line 1 Total amount of land bonded (Bonded Boundary - including south lowland) 500 Line 2 Land area actually disturbed in Bonded Boundary (Includes mining and processing areas plus any stage of reclamation that has not been released from bond.) 225.16 Line 3 Land bonded but undisturbed (Line 1 minus Line 2) 2:74.84 Line 4 Bonded land contained in roads (only includes roads that will remain after reclamation) a Line 5 Bonded land seeded but not released from bond 133.99 Line 6 Total excluded land (Line 4 plus Line 5) 133.99 Line 7 Land Board Affected Land (Line 2 minus Line 6) 91.17 Line 8 Total land allowed in Land Board disturbance category (this is a fixed value) 150.00 Line 9 Additional disturbance allowed in Land Board disturbance limitation (Line 8 minus Line 7) 58.83 Line 10 Enter the smaller of Line 3 or Line 9 58.83 GEOLOGIC CONDITIONS ENCOUNTERED: No unusual or unexpected geologic conditions were encountered in the last year. Deposits continued to be located using backhoe pits at locations that appeared to be likely deposits. Sometimes it showed good sand, other times it showed nothing. This is very much as it has been in the past. Late in the permit year the first operations were begun in the amendment area, in Area IU. As expected, excellent sand was immediately found as previously determined by exploration many years ago. HYDROLOGIC CONDITIONS ENCOUNTERED: No groundwater was encountered in any of the mining pits operated in the past year. No heavy flows were seen in Coal Creek all summer long and any flow that did occur was mainly a superficial trickle. This is understandable because there was essentially no significant rain from May 2008 until mid-August 2008. Although it is not known, it is expected that the riparian watertable declined significantly in 2008 due to the lack of any significant rainfall. This was reflected in the reduction of water surface in areas along the stream where the groundwater surfaces to produce a small puddle or pond. It was also evidenced in the rather sad looking cottonwoods along the stream for most of the summer and the die back of outer branches on the large, mature trees in the somewhat more elevated portions of the Status report for 2009 due July 15, 2009 Page 4 of 10