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RULE 2 PERMITS <br />and topsoil will be completely removed and stockpiled, making the area temporarily unsuitable as wildlife <br />habitat. This loss of habitat would be short -term in nature, as the area will be concurrently reclaimed as <br />mining progresses and after mining operations cease. As with past operational experience both locally <br />and regionally, it is likely that both the Greater sage - grouse and the Colombian sharp - tailed grouse <br />would return after the rehabilitation of sagebrush and mountain shrub habitats. " <br />Additional Mitigation Measures Recommended By CDOW <br />Colowyo has provided CDRMS with copies of the communications between CDOW and Colowyo that <br />identify additional mitigation strategies Colowyo has proposed in order to further offset disturbance in the <br />Collom Expansion Area. CDRMS received a letter from CDOW dated February 15, 2011 regarding <br />wildlife mitigation suggestions based on the proposed disturbance area in the Collom Expansion Area. <br />Colowyo management staff met with CDOW staff on April 29, 2011 to discuss the specific mitigation <br />issues raised by CDOW's February 15, 2011 letter to CDRMS. Colowyo subsequently drafted a letter to <br />CDOW on May 4, 2011 clarifying points of agreement and providing specific proposals for additional <br />wildlife mitigation measures. CDOW responded to Colowyo's May 4, 2011 letter on May 17, 2011 in a <br />letter further refining their recommendations. Colowyo has agreed to accommodate and is specifically <br />identifying the the following recommendations of Colowyo's May 4, 2011 letter to CDOW and CDOW's <br />May 17, 2011 letter to Colowyo that are not already incorporated /required by Colowyo's revised <br />reclamation plan or other process or statute below: <br />Greater Sage Grouse: <br />- Colowyo has offered to evaluate current livestock grazing management practices and <br />multiple stakeholder agreements in the Axial Basin and Morgan Creek Ranching for Wildlife areas for <br />identification of additional opportunities to minimize impacts to and enhancement of habitat of Greater <br />Sage Grouse in the area. Input from CDOW will be a helpful component of these evaluations. <br />- Colowyo will incorporate the utilization of marking flags on perimeter fences in the <br />Collom Expansion area to minimize incidents of Greater Sage Grouse mortality through grouse /fence <br />collisions. <br />- Colowyo will treat NPDES discharge ponds for mosquitos to reduce the potential of <br />West Nile Virus transmission to local grouse populations if this treatment is not specifically precluded by <br />CDPHE regulation of Colowyo's discharge ponds. <br />- Colowyo is continuing to negotiate with CDOW regarding direct short -term impact <br />mitigation of initial disturbance activities in the Collom Expansion Area disturbance footprint on off -site <br />(outside permit boundary) areas. Currently, the potential of converting several existing agricultural <br />production (wheat) fields in the Morgan Gulch and Collom Gulch drainages to Greater Sage Grouse <br />habitat are being evaluated. As these areas have been previously incorporated into the management <br />strategies for the Axial Basin Coordinated Resource Management Agreement and the lands incorporated <br />into the Morgan Creek Ranching for Wildlife Area, Colowyo does not prefer to proceed with this course <br />of action at this time. Colowyo believes that significant opportunities for targeted habitat enhancement <br />including burning/mowing and other manipulations of "old growth" sagebrush communities exist near the <br />proposed area of disturbance. These areas exist inside and immediately outside the proposed permit <br />boundary at the same relative elevation as the proposed disturbance footprint and will be even more <br />beneficial to the specific Greater Sage Grouse populations that will be affected by this permitting action <br />as it would enhance /replace the same habitat type, habitat availability and timing of habitat utilization <br />(based on elevation) that is proposed to be disturbed in the Collom Expansion Area. As these actions <br />constitute off -site mitigation of mining disturbance, Colowyo will continue to pursue an agreement <br />specific to this issue with CDOW that will be finalized prior to the initiation of mining disturbance in the <br />Collom Expansion Area. Colowyo will continue to provide CDRMS with all relevant communications <br />between CDOW and Colowyo with regards to this issue moving forward. <br />Collom — Rule 2, Page 130 Revision Date: 9/28/11 <br />Revision No.: PR -03 <br />