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June 19, 2012 C -1996- 084 /Lorencito Canyon Mine JHB <br />RECLAMATION SUCCESS - Rule 4.15, Rule 3: <br />In spite of dry conditions the reclaimed areas are staying mostly stable. A number on slopes are slated for rill & <br />gully repair as stated in the "Slides and other damage" portion of this report. <br />NECC still needs to replant the Shrub seedlings in the fenced exclosure. Timing of planting should be conducted <br />to attempt to maximize seasonal precipitation, and correlate with recommended planting times for the area. <br />REVEGETATION — Rule 4.15 Vegetative Cover; Timing: <br />The mine site is dry. Sunflowers are already drying up. Perennial grasses remain actively growing. <br />Shrub exclosure was not replanted this spring. NECC has discussed replanting the shrub seedlings in the <br />exclosure this season. Control of the grasses inside the fencing is advised to reduce competition when the shrub <br />seedlings are transplanted. <br />NECC has been conducting weed control efforts and has sprayed for Canada and Musk thistle. Few weeds were <br />observed during the inspection. NECC stated they will continue to look for and manage weeds on the site. <br />SLIDES and DAMAGE - Rule 4.12: <br />New Elk Coal Company is planning to conduct repairs to gullies, clean ditches, clean several culverts, and conduct <br />some minor repairs to the access road. The inspector and NECC representative, Bobby Steele, discussed which <br />areas needed attention. All areas of concern have been noted in previous inspection reports. <br />Areas containing gullies that need repair are located within the following reclamation blocks as identified on The <br />Annual Reclamation Report Map (2008): <br />North slope of parcel N -1 <br />East side of Fill 8 (gully is at the north end of the area located east of the fill) <br />North slope of parcel W -6 and W -5. <br />South slope of parcel W -6 <br />West side of parcel C -1 (just west of the Shrub enclosure) <br />South end of parcel W -5 <br />The South facing slope of parcel W -1 <br />Gully on east side of Pond 6 discharge drainage <br />West slope of parcel N -2 <br />2 gullies initiating on the south facing slope of parcel S -3 <br />Bobby indicated the gullies will be filled, roughened, and seeded. <br />TOPSOIL — Rule 4.06 Removal 4.06.2; Substitute Materials 4.06.4(4); Storage and Protection 4.06.3; <br />Redistribution 4.06.4: <br />Bobby asked about using material cleaned from the sediment ponds for rill and gully repair and as <br />alternate plant growth media. The results of the 2011 seeding on this material indicate that it is potentially useful <br />Number of Partial Inspection this Fiscal Year: 8 <br />Number of Complete Inspections this Fiscal Year: 4 <br />Page 3 of 5 <br />