Key mining and related activities occurring during 2010 included:
<br />? Completion of the 18-Left Mine Water Transfer Pipeline
<br />? Ongoing development and longwall mining operations in the Western Mining District
<br />? Completion of foundation preparation and road and drainage construction, and initiation of refuse
<br />placement in the Coal Refuse Disposal Expansion Area
<br />? Completion and initiation of operation of the Mine Security Installation
<br />? A change in the mine operator designation from Twentymile Coal Company to Twentymile Coal, LLC
<br />? Installation of the 6-Right Thickener Underflow Borehole and Pipeline (work is ongoing on pipeline
<br />installation)
<br />? Installation of the Replacement Thickener Underflow Borehole
<br />? Completion of the Northwest Mains Rock-Dust Installation
<br />? Completion of the 18-Left Utility Boreholes
<br />? Reclamation of the 9-Right and 18-Right Ventilation Shaft sites
<br />? Replacement of the outlet structures for Sedimentation Pond E and the Fish Creek Tipple Pond
<br />? Completion of one full year of meteorological monitoring
<br />? Submittal of required information for self-bonding
<br />During late-November and early-December 2009, the support facilities at the 18-Right Shaft and EMD Fan
<br />location were disassembled for use elsewhere on the mine-site, and the shafts were sealed and partially
<br />backfilled. Final grading, soil replacement, and revegetation of these areas were completed during 2010.
<br />Grading, stream restoration, and permanent reclamation seeding were completed for approximately 7.5 acres of
<br />disturbance associated with the 18-Left Mine Water Transfer Pipeline. No other backfilling, grading, or topsoil
<br />replacement occurred during 2010. There are several areas on the attached "2010 Annual Reclamation Report
<br />Disturbed Acreage" summary that are identified as "Reclaimed". These areas have previously been regraded
<br />and stabilized with vegetation, however, TCC has not pursued bond release for these areas due to the potential
<br />for re-disturbance in conjunction with required access and site maintenance activities.
<br />During 2010, TC planted approximately 30 trees at the 18-Left Shaft Installation to provide vegetative screening
<br />for aesthetic purposes. TC also completed fence repairs/replacement at the Fish Creek Water Treatment Facility
<br />and replaced all Permit Area signs with new signs reflecting the change in operator designation. Under our
<br />ongoing noxious weed control program, TC completed noxious weed control spraying for both active and bond-
<br />released areas (approximately 100 acres), consistent with the approved Noxious Weed Control Plan (MR06-
<br />206). Areas sprayed for weeds are shown on the 2010 Annual Reclamation Map. A spring spraying program
<br />(May-June) focused on control of white-top (hoary cress) houndstongue, and knapweed, using 2,41) and Escort.
<br />The fall spraying program (September-October) focused on control of thistle, any residual weeds, and toadflax,
<br />which had previously been found on the site only as small, isolated occurrences, using 2,41) in combination with
<br />Mirage, Tordon, or Banvel. Spraying was also conducted during the spring, within and around substations and
<br />conveyors using G1yStar + (a generic Roundup substitute) to eliminate all vegetation, as a fire-safety and MSHA
<br />consideration. As part of our ongoing land management programs. TCC also conducted managed livestock
<br />grazing activities (approximately 2,400 steers) on the bond-released areas.
<br />Permit approvals during 2010 resulted in an increase in the calculated reclamation liability and surety coverage
<br />of $117,782, to a total of $9,776,603, at year-end, summarized as follows:
<br />TR09-70, 18-Left Mine Water Transfer Pipeline ($101,723)
<br />TR09-71, Western Mining District Development and Longwall Mining Mods ($0)
<br />TR10-72, Coal Refuse Disposal Area Drainage Modifications ($0)
<br />TR10-73, 19-Right Mine Dewatering Installation ($48,986)
<br />TRIO-74, 18-Left Mine Water Transfer Pipeline Acreage Adjustment (-$88,333)
<br />TR10-75, Security Installation Drainage Modifications ($690)
<br />TRIO-76, Ditch G-6 Extension ($703)
<br />MR 10-241, Operator Name Change ($0)
<br />MR10-242, 6-Right Temporary Thickener Underflow Pipeline ($0)
<br />MR10-243, Replacement Thickener Underflow Borehole ($1,938)
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