2013-07-11_REPORT - M1988044 (2)

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GEOLOGIC CONDITIONS ENCOUNTERED: No unusual or unexpected geologic conditions were encountered in the last year. The deposit remains quite variable in vertical section with alluvial clay lenses in places. It appears the operation is occurring in an area where stream flow was meandering with frequent changes - perhaps a braided stream pattern. HYDROLOGIC CONDITIONS ENCOUNTERED: No groundwater was encountered in the mining pit operated in the past year. Flows in Coal Creek were generally weak. On the whole, moisture has been somewhat below normal over the last 24 or more months, on average, and this may have lowered the water table some. Negative changes in the riparian corridor were slight in the last year. Positive changes in the riparian corridor included a rapid recovery from the flood of June 2012. Most all areas that were flood affected have recovered very well and in many areas it is difficult to tell a flood had occurred just a year ago. Put simply, the improved management approach on the property undoubtedly helped to keep the 2012 flood from doing yet more damage. That was not always the case back when grazing impact on the vegetation in the stream channel, except in the wetlands, was so intense it would take years to recover and many areas never recovered from flood damages until grazing was terminated. Also, greatly increased upland vegetation cover has reduced the amount of sediment that makes it to the stream corridor. This is a well known wetland management technique - improving the uplands improves wetlands in the drainage system due to reduced burial by sediment and debris. Excessive sedimentation is the greatest threat to wetland survival and quality. RECLAMATION PERMIT STATUS: No changes in the permit occurred in the last year. 404 PERMIT STATUS: The 404 permit mitigation requirements were met and approved by the U.S. Army Corps of Engineers last year. No further analysis of the bottomland vegetation within the exclosures is required. However, this should not be taken to mean that the other requirements of the permit have been lifted and the site is now in a condition where anything anyone wants to do in the riparian corridor can proceed. Those requirements continue so long as there is a riparian corridor and a United States Clean Water Act. Any disturbances such as mining, drilling, or construction activities or any other modifications to the riparian corridor must first be approved by the Corps under the applicable and appropriate permit requirements. And the conditions of the permit whose provisions have been met are still applicable. It is important to recognize that a 404 permit such as the one issued does not actually apply to the party that was issued the permit, but applies to the land irrespective of how ownership of that land might change. Therefore, even though Schmidt has completed their responsibilities it is now the responsibility of the State of Colorado, as well as Schmidt so long as Schmidt is there, to keep the land in compliance with the terms of the permit. In the event the State Land Board staff does not have a complete copy of the permit, one can be supplied in digital format by requesting such from Schmidt or the permit file can be reviewed at the Corps offices near Chatfield Reservoir in Littleton. As Schmidt scanned the complete and quite large file a few years ago and has everything since then, requesting a digital copy from Schmidt would likely be the best route to update the Land Board files so the State can become familiar with what is expected in the future and what was done in the past. Because a limited amount of grazing has apparently been allowed and more is proposed, it is recommended that the fences stay in place to provide for a reference area to monitor the impact of any Status report for 2013 due July 15, 2013 Page 3 of 16