2012-12-06_REVISION - C1981008 (4)

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Fuels Colorado, LLC New Horizon Mine 2007 -2008 Vegetation Studies for Phase III Bond Release First and Second Year Analysis Irrigated Pasture and Dryland Pasture (Figures 4 & 5). 2. Reclamation and Management History: A summary of the reclamation and management history for the bond release parcels, including maintenance and repairs of rills and gullies. Response: A detailed summary of the reclamation history of these proposed bond release areas is shown on the enclosed bond release maps, Map R -1, SL -14 Bond Release Map, which shows the areas being requested for Phase II and Phase III bond release and Map R -3, Topsoiling and Reseeding Map which shows the years of retopsoiling and reseeding, associated with this bond release application. Additional information relative to these areas is found in the respective found in the Annual Reclamation Reports (ARR) which have previously been filed by Western Fuels Colorado LLC (WFC). As defined in Rule 4.15.7(5) the liability period relative to the performance bond requirements of Rule 3.02.3 "begins after the last year of augmented seeding, fertilization, irrigation or other work" and continues for a period of ten years. Examination of the seeding dates for the various parcels associated with this Phase II and Phase III bond release request as found in the ARR's, which documents that seeding of the Irrigated Pasture parcels associated with the Phase II bond release areas commenced in 2004 and continued through 2007 and for the Phase III bond release areas, commenced in 1994 in the southeast portion of the area and continued through 2002, when the extreme northwest parcel in the Phase III Bond Release area was reclaimed. Rule 4.15.7(5) requires that the bond liability period is re- initiated when (1) the repair of rills and gullies results in more than five percent of the area seeded in any one year being disturbed, (2) if weed control and associated revegetation results in more than five percent of the area reclaimed in any one year being disturbed, and; (3), whenever augmented interseeding is conducted after year five once the bond liability period commences. Since the bond liability period is for a period of ten years, in the following summary, the year 2012 and the associated vegetation monitoring performed in this year are considered as year ten and have evaluated the management history for the ten years prior to that date are evaluated, going back to 2003 are summarized. The DRMS previously concluded in a letter dated 20 October 2011, in relation to the original Bond Release Application for the SL -12 area, that a 34.6 acre portion of the Irrigated Pasture Reclamation must be excluded from that SL -12 Bond Release request. The CDRMS informed WFC and their consultant that since "interseeding" as defined in Rule 4.15.7(5)(g) was conducted beyond the "first four years" of the bond liability, the implementation of "interseeding" in 2006 meant that this reset the bond liability time SL -14 03DEC12.wpd 14