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0 Phase 3 Release Criteria and Results <br />Reclamation of the Phase 3 area began immediately after mining in 1993. Overburden, <br />subsoil, and topsoil were replaced as part of the approved backfilling and grading plan at the <br />time. As the land topography was returned to the approximate original condition, revegetation <br />took place using the approved Seedmix #5 for irrigated pasture and Seed Mix #8 for dryland. <br />Seeding took place in the mid-1990s. Details regarding specific topsoil and seeding times <br />over the areas covered in this Phase 3 bond release application can be found on both page 10 <br />and Maps R-1 7 R-2. <br />Phase 2 bond release was achieved for these parcels in 2009. <br />Phase 3 bond release of coal mine is based on the following Colorado Division of <br />Reclamation, Mining, and Safety criteria: <br />Rule 3.03.1(2)(c) <br />The remaining portion of the bond amount shall be released when the permittee has <br />successfully completed all surface coal mining reclamation operations in accordance with this <br />approved reclamation plan, and the final inspection and procedures of 3.03.2 have been <br />satisfied. This shall not be done before the expiration of the period for revegetation <br />responsibility in 3.02.3. <br />In order to meet this rule, Western Fuels must demonstrate successful revegetation of the <br />release area (meeting of cover and production standards) and that post-mine conditions satisfy <br />the requirements of Rule 4.05.13 - Surface and Ground Water Monitoring. <br />The 2007-2008 Vegetation Studies for Phase 3 Bond Release: First and Second Year <br />Analysis - Irrigated Pasture and Dryland Pasture, written in December 12, 2008 and <br />revised July 3, 2010 by BIO-Logic Environmental in Appendix B demonstrates that both the <br />Irrigated Pasture and Dryland Pasture areas meet the requirements of the above rule. <br />1. Post-mine Revegetation Success <br />In order to satisfy the vegetation portion of Phase 3 reclamation, the vegetation in all areas <br />must meet or exceed 90% of the reference area cover and production for two out of four <br />years. <br />Table 1 shows a comparison of the reclaimed areas cover and production to that of the <br />reference areas. As can be seen in the table, both the Phase 3 Irrigated Pasture and Dryland <br />Pasture areas meet or exceed 90% of the reference area cover and production for two <br />consecutive years, satisfying the reclamation plan and DRMS standards. <br />0 SL-12 DRAFT 20AUG10.wPd 31