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2012 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 remains in temporary cessation and the Munger <br />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 for field parameters (pH, conductivity, <br />temperature, flow) and a full suite sample will be obtained quarterly, water quality <br />samples twice per year for SW -2 and SW- 5;once during snow melt and once <br />during a storm event if water is available at time of water sampling, and quarterly <br />water quality samples for SW -3. The quantity of flow will be measured at the <br />time when samples are collected. GW -1, 3 & 9 will be monitored quarterly for <br />field parameters (pH, conductivity, temperature, flow) and a full suite sample will <br />be obtained annually in the Spring. <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. Production during 2012 was <br />zero tons for the calendar year, and zero tons for the water year. <br />CAM - Colorado, LLC has been granted a lease suspension. It is unknown how <br />