2013-04-15_REPORT - C1980006 (3)

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Marr Mine and Loadout Apr 11, 2013 2012 Reclamation Report Phase 2 Partial Bond Release for the Loadout site (6.9 acres) was included in SL -4 and was approved January 5, 2009. As explained above in Items 2.0 and 3.0, the Loadout pond was backfilled during November 2011. Given that the Loadout pond had been backfilled during the previous year, water monitoring in the field was not conducted during 2012. However, Discharge Monitoring Reports (DMR's) were submitted to Colorado Division of Water Resources during 2012 and will continue to be submitted according to the Rules of the DWR until the DRMS approves final Bond Release. 11.0 REVEGETATION SUCCESS EVALUATION Revegetation success sampling was completed in 1999 on the pre -1986, 1995, and 1996 reseeded areas. The results of this sampling are contained in a report prepared by ESCO Associates Inc. dated February 2000. This evaluation included cover, annual production, shrub density and species diversity /composition. Based on the sampling results, revegetation in these areas satisfies the applicable revegetation success standards except for cover or shrub density in the pre -1986 reclamation area. Kerr conducted managed grazing operations on reclaimed areas and subsequently completed Year 9 revegetation success monitoring in 2005 and Year 10 during 2006. Results of the studies show that success has been achieved on those areas that qualified for the Ten Year Reclamation Liability Period. Copies of the studies, "Kerr Coal Company Revegetation Monitoring Report (2005 & 2006)" are on file with the DRMS. During the summer seasons of 2009 and 2010, Mr. Kent Crofts of I.M.E., of Yampa Colorado conducted the vegetation sampling and studies required for Growth Year 9 and Growth Year 10 respectively. Two parcels at the mine, approximately 4 acres each that are not yet released and the related Reference Area for the parcels were sampled. Additionally, the Loadout Site and its respective Reference Area was studied for Growth Years 9 and 10. The vegetation study yielded concerns of species diversification. Pursuant to additional communications with the DRMS, Mr. Crofts submitted additional information and Kerr submitted Technical Revision 25 (TR -25) to the Division. TR -25 adequately addressed the diversification concerns and the Division approved TR -25 during the summer season of 2012. 11.1 LOADOUT POND REVEGETATION As previously stated, ground frost during the late fall of 2011 prevented seeding to be done at the Kerr Loadout pond at that time. Therefore, broadcast seeding of the approved seed mix was done during April of 2012 on the pond footprint, the related inflow ditch to the pond and the access track from the entrance gate to the pond footprint. These areas were then mulched with certified weed free hay and the mulch was crimped into the ground. Various reports by the Division's Inspector during monthly inspections indicate that the revegetated areas at the Loadout site have shown good growth through the 2012 summer season. A few photos (3) taken by the Inspector during September and November 2012 inspections are enclosed with this report. 5