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Logan Wash Mine Annual Report <br />Permit No.: M-1977-424 <br />after a major storm event in 2004 deposited debris flow material from the Lower Dump at the toe <br />of the dump; this area was revegetated in 2005. <br />Areas currently not expected to be reclaimed under the mine permit are the Lower Bench (Area 3, <br />2.1 acres), the Lower Bench Road (Area 13, 0.9 acres), and the Upper Access Road (Area 13, <br />BLM "tramroad" right-of-way, 5.3 acres) and the Evaporation Pond and Pipeline (Area 23, 9.8 <br />acres). These surface areas comprise an approximate total of 18.1 acres. <br />Should OXY-USA decide not to construct a natural gas well on the Lower Bench, then OOSI will <br />reclaim the Lower Bench at a suitable time (pending a final resolution of retort water treatment or <br />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 2010. 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 under Amendment No. 1. <br />On August 29`h, 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 2009 <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) flow monitoring and sampling of two National Pollution Discharge <br />Elimination System (NPDES) outfalls as required by permit schedules, (2) measurement of flow <br />rates of the mine-water discharge and retort-water discharge on an approximate monthly basis, <br />and (3) measurement of the manometer installed in the Research Mine Vault. Monitoring data for <br />the reporting period 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 />drainage pipeline from the Research Mine to the top of the stormwater channel on the northern <br />portion of the Lower Bench (see Technical Revision No. 6). This work was done to locate both <br />outfalls in the upper part of Dry Gulch, so that the monitoring requirement at the downstream <br />flume would apply to both outfalls. This work was verbally approved by CDPHE. <br />Western Water & Land, Inc. 4