2010-02-23_REPORT - C1980006 (3)

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Marr Mine and Loadout Feb 17, 2010 2009 Reclamation Report At the mine site, the former Ponds C and G were reclaimed, re-seeded, mulched and crimped during 2006. Varieties of the seeding as well as native species is taking hold with no significant erosion occurring on the site. In 2005, Kerr requested changing the status from temporary to Permanent Light Use for the access road to the former Pond G area (north of the county road) and 900 feet of the main mine entrance road where it intersects with CR12E. Also, a Permanent Pond demonstration for Pond F was submitted to the DRMS. Approval of these changes was granted during 2007 for the road segments and to retain Pond F as a permanent structure. Map 1 (2009 Mine Area Reclamation) presents the general location and extent of site activities completed during 2009 as well as during previous years for the Mine area. Map 2 presents the reclaimed and permanent areas for the Loadout. 1.0 BOND RELEASE KCC submitted a final Bond Release Request (SL-4) to the Division on September 6, 2007 for the mine areas that were eligible for release. Accordingly, KCC requested Phase 1 Bond Release for permanent structures, roads & ponds; Phase 2 Bond Release for permanent structures, roads, the Loadout site, Pit 1 & Marr Pit; Phase 1, 2 & 3 Bond Release for permanent structures, Pit 1, Marr Pit & the 720 Pit. Subsequent to the request submittal, it was decided to allow additional time to seal & reclaim the remaining water monitoring wells at the mine so as to include the reclaimed wells in the bond release request. Availability of drill rigs to seal the boreholes was limited, but the sealing, reclamation & reseeding of the monitor well sites was completed in October, 2008. The exception was the spoils well, Spoil Well SP-01, which was converted to a stock watering well at the request of the land owner. The conversion was approved by the DRMS & the Colorado Water Division. The Office of the State Engineer assigned Well Permit Number 232027 to the well. Two parcels at the mine area totaling 8 acres (approximately 4 acres each) were excluded from the Release Request given that they were seeded in 1999 and not yet eligible for release (Rule: 3.02.3(2)(b)) at the time of the Release Request. Likewise, the Loadout site (11.7 acres) south of Walden was not eligible given that it was seeded in 1999 and reseeded in 2000. In accordance with Rule 3.03.2(2), a bond inspection was conducted at Kerr on October 23, 2007. Following review of the bond release request and publication of the public notices of the request/decision and notification to adjacent landowners (Rule: 3.03.2(1), the DRMS approved total release of 372.7 acres at the Kerr (Marr) mine area. The Division's approval for Bond Release SL-4 became final on January 5, 2009. Federal agencies, the Bureau of Land Management (BLM) and the Office of Surface Mining (OSM) concurred with the DRMS' approval decision. Prior to the approved Release, the Division held a performance bond in the amount of $700,270.00 for the mine area and the Loadout site. With approval of SL-04, the Division released $680,651.00 from the above amount, reducing the performance bond to $19,619.00. The remaining amount of the bond is more than adequate to perform reclamation tasks at the Loadout site and the 8 remaining acres at the mine area if it should become necessary.