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• Revegetation Monitoring <br />Quantitative sampling of reclaimed and reference areas was undertaken in July 2012 by ESCO <br />Associates to provide data for formal testing of Revegetation Success in application for Phase III <br />Bond Release. The 2012 data would be the first of two years' data needed to comply with <br />CDRMS bond release testing requirements. Methods, sample areas, and sample sizes were those <br />specified in a study plan submitted by Peabody to Colorado Division of Minerals and Geology <br />for bond release testing on the same lands when they were part of the Seneca II Mine permit <br />area. <br />• Grazing <br />Cattle (1000 long yearlings) were moved on to the PSCM reclaimed area August 1 2012 and <br />moved off by August 27 2012. See attached 2012 Grazing Plan Map for pasture locations. <br />This grazing scheme resulted in a total of 720 AUM's for 2012. <br />Assumptions: 1 long yearling = 0.8 AUM, requiring 648 pounds offorage per month. (One <br />AUM requires 810 pounds offorage). <br />The AUM usage is calculated using the following assumptions: <br />Assumptions: <br />Average production = 847 lbs/acre (See 2012 Testing for Revegetation Success for Phase <br />III Bond Release Report) <br />Total reclaimed area = 1,300.4 acres (included Pre -Latin' area) <br />One AUM requires 810 lbs. offorage <br />847 lbs /acre (x) 1300.4 acres = 1,102,219 lbs. of total forage produced <br />810 lbs. of forage (x) 720 AUM's = 583,200 lbs. of forage required; <br />Therefore, <br />583,200 (/) 1,102,219 (x) 100 = 53% utilization of the PSCM grazed reclaim area. <br />SEDIMENTATION POND SURVEYS <br />PSCM is required by Permit to periodically monitor sedimentation ponds for sediment storage <br />capacities. Monitoring provides a sediment yield history and gives advance warning to <br />operations personnel when sediment clean -out work is required. Past data has shown reduced <br />sedimentation as revegetation has progressed. The surveys from 2006 show capacities that are <br />more than adequate. Because surface mined areas have been reclaimed and have been <br />revegetated for several years, the capacities aren't expected to significantly change. <br />Additionally, Pond 002 is buffered by the lower sediment pond from newly disturbed areas <br />associated with the underground mine. <br />In accordance with Rule 4.05.9(14), each pond is inspected annually by a qualified professional <br />specialist under the direction of a professional engineer or a qualified registered professional <br />2012 ARR 5 <br />