2010-02-23_REPORT - C1980006 (3)

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Marr Mine and Loadout 2009 Reclamation Report 7.0 NOXIOUS WEED CONTROL Feb 17, 2010 During DRMS' inspections at the Loadout, it was noted that Canada Thistle was found at the site. In response to these concerns, KCC sprayed the thistle during September, 2009. The herbicide, LV400, 24D was mixed and applied at the recommended rate of % pint per 3 gallons of water. 8.0 DRAINAGE AND SEDIMENT CONTROL KCC received the official notice of termination of Colorado Discharge Permit Number COG- 850037 dated April 2, 2009. The discharge permit pertained to the sedimentation ponds located at the mine site that remain as permanent structures. Termination of Discharge Permit COG- 850037 approved by the Water Control Division and with the Final Bond Release SL-4, approved by the DRMS, KCC is released from ongoing liability concerning the ponds located at the KCC mine site. The pond located at the Loadout site is not yet eligible for release. As part of Kerr's regular site maintenance activities, the surface water control structure at the Loadout was inspected. Any concerns noted by the DRMS in their regular site inspection reports were considered. For certification, the pond/embankment was inspected by a registered P.E., Mr. Brian Len of NWCC, Inc. of Steamboat Springs, Colorado during May, 2009. Based on inspection, the surface water control structure at the Loadout was found to be in good condition. 9.0 SURFACE FACILITIES During October, 2008, sealing, reclamation & reseeding of the monitor well sites was completed in the mine area. The monitor wells reclaimed were: 79-1; 79-2; 79-3; 79-61 and AO-2A. 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. 10.0 LOADOUT AREA Final reclamation activities were completed for the Loadout Area (approximately 7 acres) during 1999. The Loadout Area was re-seeded in October 2000 and good growth was evident during the Phase 1 bond release inspection conducted in May 2001. During the fall of 2007, willows were removed from the Tipple pond's emergency spillway and the road ditch along the entrance road was regraded and cleaned. Phase 2 Partial Bond Release for the Loadout site was included in SL-4 and was approved January 5, 2009. During the report year, water monitoring continued at the site in accordance with the approved water monitoring schedule as well as routine overall maintenance of the site. As stated above (Item 7), Canada Thistle was treated at the Loadout during September, 2009. 11.0 REVEGETATION SUCCESS EVALUATION Revegetation success sampling was completed in 1999 on the pre-1986, 1995, and 1996 reseeded areas. The results of this sampling are contained in a report prepared by ESCO Associates Inc. dated February 2000. This evaluation included cover, annual production, shrub density and species diversity/composition. Based on the sampling results, revegetation in these 4