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Logan Wash Mine Annual Report <br />Permit No.: M-1977-424 <br />Bench Road and Lower Access Road areas of Area 13 were revegetated in the fall of 2005. In <br />addition, the toe of the Lower Dump (1.64 acres) was identified as an area requiring reclamation <br />after a major storm event in 2004 deposited debris flow material from the Lower Dump at the toe <br />of the dump; this area was revegetated in 2005. The upper segment of the Lower Access Road has <br />successfully revegetated, whereas the lower segment has not. This is partially due to damage from <br />seasonal cattle grazing. <br />Areas currently not expected to be reclaimed in the near future are the Lower Bench (Area 3, 2.1 <br />acres), the Lower Bench Road (Area 13, 0.9 acres), and the Upper Access Road (Area 13, BLM <br />"tramroad" right -of -way, 5.3 acres) and the Evaporation Pond and Pipeline (Area 23, 9.8 acres). <br />These surface areas comprise an approximate total of 18.1 acres. <br />OOSI does not expect to reclaim Area 23, the Evaporation Pond and pipeline in the near future as <br />retort water management and treatment are being evaluated under Amendment No. 1. Should <br />OXY -USA decide not to construct a natural gas well on the Lower Bench, then OOSI will <br />reclaim the Lower Bench at a suitable time (pending a final resolution of retort water treatment or <br />management). <br />On August 29 2005, DMG conducted a site inspection of lands meeting reclamation <br />requirements. On January 12 2006, DMG released OOSI from further reclamation <br />responsibility for Areas 6, 8, 9, 12, 14, 15, 16, 17, 19, 20 and a portion of Area 13 (roads). <br />Mr. Travis Marshall of DRMS, conducted a site inspection on June 30, 2010. The purpose of the <br />inspection was to evaluate the status of revegetated areas and their potential for reclamation <br />release. On the basis of the discussion that occurred during the inspection, OOSI anticipates <br />requesting release of warranty for portions of Areas 1 (12.36 acres), and 2 (0.74 acres), and Areas <br />4 (4.26 acres), and 10 (0.24 acres), the revegetated portions of Area 13 (1.26 acres), the "Lower <br />Dump Toe" (estimated to be 1.64 acres), and the Soil Barrow Area (0.65 acres) in the near future. <br />These areas total approximately 21.1 acres. <br />3.0 Monitoring Activities in 2011 <br />Monitoring activities at the Logan Wash Mine during the reporting period consisted of periodic <br />monitoring of mine water discharge and related sampling activities when necessary. These <br />activities included (1) flow monitoring and sampling of two National Pollution Discharge <br />Elimination System (NPDES) outfalls as required by permit schedules, (2) measurement of flow <br />rates of the mine -water discharge and retort-water discharge on an approximate monthly basis, (3) <br />measurement of the manometer installed in the Research Mine Vault, and 4) monitoring of the <br />Evaporation Pond leak detection system. Monitoring data for the reporting period are shown in <br />Table 4. <br />3.1 NPDES Outfall Sampling <br />The NPDES permit for Logan Wash Mine was renewed and became effective on May 1, 2011. <br />Two NPDES (Colorado Discharge Permit System, [CDPS] permit no. C00048816) outfalls, <br />administered by the Colorado Department of Public Health and Environment (CDPHE), were <br />monitored in accordance with permit - established schedules. Outfall 001 (Logan Wash Mine, <br />main lower portal [L -1 Portal] discharge) is to be monitored monthly for pH, total suspended <br />solids (TSS), oil and grease, arsenic, cyanide (WAD), molybdenum, selenium, uranium, boron, <br />and chloride; and quarterly for total dissolved solids (TDS), mercury and whole effluent toxicity <br />(WET). <br />Western Water & Land, Inc. 4 <br />