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Kerr (Marr) Mine - 2009 Annual Hydrology Report <br />1.0 OPERATIONAL CONDITIONS <br />The majority of the mine site area achieved final bond release (SL-04) as approved January 5, 2009. To <br />recapitulate, a brief history of operations is presented below. <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. A spoil monitoring well (SP-01) was installed at the north end of the <br />720 Pit area in 2001 and subsequently, was converted to a stock watering well for the landowner. The <br />only ongoing activities for the sites are site maintenance, environmental monitoring, and reclamation <br />permit compliance activities. Kerr Coal Company (Kerr) in cooperation with the Colorado Department of <br />Natural Resources Division of Reclamation, Mining and Safety (DRMS), the United Stated Department <br />of the Interior Bureau of Land Management (BLM) and the Office of Surface Mining, Reclamation and <br />Enforcement (OSMRE) completed a program during 2002 to identify, plug, seal, and reclaim a number <br />of old exploration boreholes and shallow alluvial monitoring wells in the Kerr North Area, north of the <br />County Road. In 2006, Pond C (CDPS #303) and Pond G and their associated soil stockpiles and <br />ditches were reclaimed. Pond F was recommended for permanent status in 2006 and the decision was <br />approved in 2007. In 2007 (TR-23) Kerr recommended that all surface, groundwater and vegetation <br />monitoring at the mine be revised (terminated) because all the requirements of the permit had been <br />met. Subsiquently,TR-23 was approved and monitoring at the mine site ceased. <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 BLM. 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 />3.0 MONITORING AND ANALYSES <br />Water monitoring requirements during the 2009 water year (Oct. 2008 through Sept. 2009) were <br />superseded by TR-23 which was approved October 15, 2007 and monitoring was terminated at <br />the mine site. Ground water and surface water monitoring continues at the Loadout facilities until <br />release of that site becomes appropriate and final release is approved.