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Marr Mine and Loadout Apr 11, 2013 <br />2012 Reclamation Report <br />Map 1 (2012 Mine Area Reclamation) presents the general location and extent of site activities <br />completed during 2011 as well as during previous years for the Mine area. Map 2 presents the <br />reclaimed and permanent areas for the Loadout. <br />1.0 BOND RELEASE NO.4 (SL-4) <br />KCC submitted a final Bond Release Request (SL -4) to the Division on September 6, 2007 for <br />the mine areas that were eligible for release. Accordingly, KCC requested Phase 1 Bond <br />Release for permanent structures, roads & ponds; Phase 2 Bond Release for permanent <br />structures, roads, the Loadout site, Pit 1 & Marr Pit; Phase 1, 2 & 3 Bond Release for <br />permanent structures, Pit 1, Marr Pit & the 720 Pit. <br />Subsequent to the request submittal, it was decided to allow additional time to seal & reclaim <br />the remaining water monitoring wells at the mine site so as to include the reclaimed wells in the <br />bond release request. Availability of drill rigs to seal the boreholes was limited, but the sealing, <br />reclamation & reseeding of the monitor well sites were completed in October, 2008. The <br />exception was the spoils well, Spoil Well SP -01, which was converted to a stock watering well at <br />the request of the land owner. The conversion was approved by the DRMS & the Colorado <br />Water Division. The Office of the State Engineer assigned Well Permit Number 232027 to the <br />well. <br />Two parcels at the mine area totaling 8 acres (approximately 4 acres each) were excluded from <br />the Release Request given that they were seeded in 1999 and were not eligible for release for <br />inclusion with SL -4. The vegetation study done for this site during 2010 yielded concerns of <br />vegetation species diversification. The vegetation specialist, Kent Crofts with IME of Yampa, <br />Colorado submitted more data concerning the site and Kerr submitted TR -25 which addressed <br />the diversification concern. The Division approved TR -25 during the summer season of 2012. <br />In accordance with Rule 3.03.2(2), a bond inspection was conducted at Kerr on October 23, <br />2007. Following review of the bond release request and publication of the public notices of the <br />request/decision and notification to adjacent landowners (Rule: 3.03.2(1), the DRMS approved <br />total release of 372.7 acres at the Kerr (Marr) mine area. The Division's approval for Bond <br />Release SL -4 became final on January 5, 2009. Federal agencies, the Bureau of Land <br />Management (BLM) and the Office of Surface Mining (OSM) concurred with the DRMS' <br />approval decision. <br />Prior to the approved Release, the Division held a performance bond in the amount of <br />$700,270.00 for the mine area and the Loadout site. With approval of SL -04, the Division <br />released $680,651.00 from the above amount, reducing the performance bond to $19,619.00. <br />The remaining amount of the bond is more than adequate to perform reclamation tasks at the <br />Loadout site and the 8 remaining acres at the mine area if it should become necessary. <br />2.0 MINING AND TOPSOIL REMOVAL <br />Active mining operations at the Marr Mine ceased in January 1993 and no mining or significant <br />topsoil removal activities have occurred subsequent to that date. The topsoil that was removed <br />from the embankments of the Loadout Pond (less than 1 acre) during November of 2011 was <br />temporarily stored in topsoil berms at the perimeter of the work site. Following completion of the <br />backfilling of the pond and related ditch the topsoil was immediately replaced and re- graded for <br />surface drainage. <br />2 <br />