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2011 ANNUAL HYDROLOGY REPORTS <br />McClane Canyon Mine Permit No. C- 1980 -004 <br />Munger Canyon Mine Permit No. C- 1981 -020 <br />This report on the mine inflows, discharges and probable hydrologic <br />consequences is submitted in compliance with the stipulations of the Mining and <br />Reclamation permits for the mines noted above. The stipulations require a report <br />for each permit. Since the mines are in close proximity, the effects are combined. <br />The McClane Canyon mine was in temporary cessation during the year and <br />Munger Canyon Mine has been reclaimed. <br />This report shall first discuss the effect of McClane Canyon Mine (MCM) on the <br />hydrologic regime, next discuss the effect of Munger Canyon Mine, and then give <br />an overview of the surface water system and groundwater monitoring. This report <br />shall conclude with a discussion of the cumulative effect of both mines on the <br />hydrology of East Salt Creek. <br />Monitoring for McClane Canyon and Munger Canyon Mines per the approved <br />permit documents for temporary cessation, (or permanent cessation in the case <br />of Munger as it has been reclaimed) shall include; quarterly water quality <br />samples from SW -1 and SW -8, water quality samples twice per year for SW -2 if <br />water is available at time of water sampling, and quarterly water quality samples <br />for SW -3. The quantity of flow will be measured at the time when samples are <br />collected. <br />McClane Canyon Mine <br />Mine History and Production: <br />The McClane Canyon Mine began production in 1977. The mine ceased <br />production later that year when a fault was encountered. The mine remained idle <br />until 1980. From 1977 through 1982 the mine produced a total of 184,365 tons of <br />coal. In 1983 the mine was idled and remained under Division approved <br />temporary cessation until November 1988. In December of 1988, 3,995 tons of <br />coal was mined. In 1989; 125,200 tons of coal was produced. Production during <br />1990 totaled 208,945 tons. Production for 1991 totaled 194,000 tons of coal. <br />1992 Production was 7,914 tons. No coal was produced between 1993 and <br />1996. In 1997 production of 49,115 tons was accomplished. The mine was idle <br />during 1998 and 1999. Production began again in February 2000 and has been <br />continuous through December 9, 2010. Production during 2011 was zero tons <br />for the calendar year and 32,070 for the water year. <br />CAM - Colorado, LLC has been granted a lease suspension. It is unknown how <br />long the mine will remain idle. <br />As required by stipulations, a mine map for McClane Canyon showing important <br />hydrologic features is included as Figure 3. Seepage into the mine is nearly all <br />from the areas mined to the north of the East Mains. Water from seeps <br />