2010-06-28_REVISION - C1981019 (2)

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3.2 Phase III Vegetative Success S The areas included in this Phase III Bond Release Application have been shown to meet the Phase I I I criteria as set forth by the "Guideline Regarding Selected Coal Mine Bond Release Issues", issued April 18, 1995 and Colowyo's current permit, Permit C- 81-019. Please see Exhibit 2 for a detailed demonstration of the vegetative cover requirement. This report, prepared for Colowyo by Cedar Creek and Associates under the direction and supervision of Kurt Blunt, Environmental Supervisor at Colowyo, details the success of the criteria found in Section 4.15 of Permit C-81-019. 3.3 Post-Mining Land Use Colowyo has achieved the approved post-mining land use of rangeland in these Phase II areas, according to the requirements of Sections 2.05.4-2.05-5 of Colowyo's Permit C-81-019. The post-mining land use of rangeland is identical to the premining land use, and is consistent with surrounding areas. Colowyo has proposed to reclaim mining areas to specifically support both domestic livestock and wildlife. As documented in Exhibit 2 of this report, Colowyo has created an erosionally stable and biologically diverse ecosystem in the Phase III area. This plant life sustainably supports a large assortment of various species of wildlife. Hundreds of elk, antelope and deer have been observed on these areas, and many stay for the majority of the year. Small mammals and various birds species, including sharptail grouse, raptors and waterfowl have also thrived on Colowyo's reclaimed rangeland. Wildlife grazing has been observed on these lands for over a decade, and the land has provided a sustainable source of food. Although domestic livestock grazing is a component of the reclaimed rangeland areas, to date no domestic livestock grazing has been allowed on Colowyo's reclaimed rangeland. This activity has not commenced due to a variety of safety and liability concerns. Most of the surrounding area is currently grazed by domestic livestock. Colowyo expects to reestablish domestic grazing once Phase III bond release is granted in these areas and the appropriate fencing is established. Forage production has been vastly increased in these reclaimed areas as compared to pre mine conditions. The introduced wheatgrasses, cicer milkvetch, alfalfa, etc. ensure that ample and diverse forage option exist for the successful reestablishment of domestic livestock grazing in the near future. The Phase III areas also have stock tanks to provide wildlife and livestock with water as they graze. For more information on these stock tanks, please see Section 4.0 - Effects of Hydrologic Balance and Exhibit 1 for their respective locations. 4.0 Effects on Hydrologic Balance All surface runoff from all of the reclaimed lands that are the subject of this Phase III bond release application is conveyed to the receiving streams via a system of permanent ditches, contour ditches, and temporary sediment ponds. The permanent Phase 111 Bond Release Application 11