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permits for sediment ponds will be permitted with Colorado Division of Public Health <br />and Environment. <br />The Second Park Lateral is an irrigation ditch in the CC Ditch Company system that <br />delivers irrigation water to the current area being permitted for mining, as well as land <br />- east, west and southwest of the permit area. The ditch crosses the permit area. Design is <br />underway to temporarily relocate the ditch around the mine area by piping it down to AA <br />Road and back up to its existing location where it crosses 2600 Road. Initial design calls <br />Alk for a 24" HDPE pipeline. Upon completion of mining, the pipe will be reinstalled across <br />the permit area near the original ditch location. The existing diversion boxes will be <br />AM, <br />replaced with piping, valves and a flow meter. A plan acceptable to the CC Ditch <br />Company will be prepared that insures historic flows of irrigation water are delivered to <br />adjoining property owners impacted by mining. <br />Reclamation Plan <br />An extremely important part of any mining operation is the reclamation of the site to a <br />condition nearly identical to the original condition of the site. As with any surface coal <br />mine, extensive research has been done on the site to determine existing conditions. <br />Vegetation studies have been prepared to identify vegetation types and productivity at <br />multiple sites within the permit area. Soil studies have been performed to determine the <br />thickness and quality of available topsoil. Hydrologic studies have evaluated quality, <br />quantity and movement characteristics of ground water. Topographic mapping has been <br />done to establish the existing surface contours and drainage patterns. These and other <br />studies have been used to establish how overburden will be replaced, how the topsoil will <br />be replaced, what seed mixes will be used, and how the regraded areas will be <br />revegetated. Multiple seed mixes will be permitted to account for the pre-mining <br />vegetation variations. A key requirement in the mining and reclamation regulations is to <br />return the topography to the approximate original contour. Backfill and grading must <br />take this into account. A key requirement from a water rights standpoint is that the same <br />areas are to be irrigated that were irrigated before mining. Some reclaimed areas may be <br />irrigated temporarily to reestablish vegetation but before bond release, the irrigation <br />pattern must be similar to the pre-mining patterns. Release of land from the bonding <br />requirements also requires established vegetation diversity and productivity standards. <br />During the reclamation phase of the operation, control and treatment of surface run-off <br />continues to be important. Reclamation of areas used for ponds and ditches will occur <br />after adjacent vegetation is well established. Temporary sediment control measure may <br />continue to be required until bond release. <br />Schedule <br />Planning and preparation for the New Horizon North Mine has been underway for several <br />years and will require another 2 or more years before the first truck load of coal is <br />shipped. Earlier phases of preparation included evaluation of the resources, developing <br />baseline information, mine design, and coal lease acquisition. Test holes were drilled to <br />determine depth and thickness of overburden and coal characteristics. Specialists have <br />collected and will continue to collect soils, vegetation, hydrologic, and other <br />Page 7