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Rio Tinto Energy America <br />Colowyo Coal Company, L.P. <br />COLOWYO MINE <br />2008 PHASE III BOND RELEASE EVALUATION - YEAR 2 <br />REVEGETATION UNITS <br />IN PHASE III SAMPLING: REFERENCE AREAS: <br />EP001 EP015 WP001N MOUNTAIN SHRUB <br />EP002 EP016 WP002 SAGEBRUSH <br />EP003 EP017 <br />EP004 EP018 <br />EP005 EP019 <br />EP006 EP020 <br />EP007 EP021 <br />EP008 EP022 <br />EP009 EP023 <br />EP010 EP024 <br />EP011 EP025 <br />EP012 EP026 <br />EP013 EP027 <br />EP014 <br />1.0 INTRODUCTION <br />Cedar Creek Associates, Inc. (Cedar Creek) was contracted in 2008 by Colowyo Coal Company <br />(Colowyo) to evaluate revegetated units for Phase III bond release at the Colowyo Mine. Units included <br />in this Phase III evaluation received a second consecutive year of sampling in 2008 and were established <br />and reclaimed between 1979 and 1995. Sampling was performed in the interest of ascertaining progress <br />toward revegetation success in general accordance with the proposed technical revision (TR-72) first <br />submitted by Colowyo in early 2008. Data and corresponding success testing in this document are <br />presented under the predication that the technical revision be acceptable to the Colorado Department of <br />Reclamation, Mining, and Safety (CDRMS). Revegetated areas evaluated in 2007 and 2008 consisted of <br />all or part of 29 units comprising 780.7 acres in East Pit and West Pit. In addition, two reference areas <br />(Mountain Shrub and Sagebrush) were sampled to provide cover and production comparison values to <br />facilitate an evaluation of success for the reclaimed units. Phase III bond release data analysis and <br />CEDAR CREEK ASSOCIATES, Inc. Page 1 Colowyo Coal Company <br />2008 Phase III Bond Release Evaluation