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Q MWH r/r~, Februa 14,2004 Ffe'r 1&~~~ ~ ry Diviaiofl Df Minerals eae L,`olon.. Mr. Michael Boulay Division of Minerals & Geology 1313 Sherman Street -Room 215 Denver, Colorado 80203 (303) 866-3567 Re: Kerr Coal Company -Marr Mine (Permit No. C-80-006), 2003 Annual Reclamation Report Dear Mr. Boulay, The following summarizes site maintenance and reclamation activities that occurred at the Marr Mine and associated Loadout during 2003. Active mining and related activity was suspended and final reclamation activities were initiated in early 1993. At the end of 1999, approximately 357 acres had been reclaimed in the Marr Mine and Loadout areas, with approximately 44 acres of roads, facilities, sediment control structures, and soil stockpiles remaining. A portion of the remaining total acreage is associated with long-term facilities that have been approved for permanent retention in conjunction with the postmining land use. Disturbance areas reclaimed in 1999 included the Loadout Area; a portion of the shop/warehouse facilities pad; and the former powder magazine area, soil stockpile area, and associated road. Kerr relinquished the federal coal lease for the northern portion (north of county Road 12E) of the mine property in July of 2002. Except for the Loadout Area, which was seeded to the permanent revegetation seed mixture, areas reclaimed in 1999 were initially seeded to the annual rye mulch crop, followed by the permanent revegetation seeding in 2000. As part of Kerr's regular site maintenance activities and consistent with any concerns noted by the DMG in their regular site inspection reports, surface water control structures were inspected. Based on inspection, the surface water control structures were generally in good condition, with the only required repairs or maintenance as noted below. Areas identified during the 2001 bond release inspections as presenting erosion or revegetation concerns were repaired and reseeded to control erosion. Inspection of these areas in early 2002 indicated limited vegetative growth, so additional seed was inter-seeded into the existing vegetation. Ongoing site maintenance included the following specific project activities: • Cleaned and repaired contour furrows on steep slope at southwest corner of Pit 1 area • Cleaned and repaired contour furrows in small area at the north end of the Marr Pit area • Repaired minor erosion in small area on the ridge to the west of the Marr Pit area • Cleaned and repaired contour furrows on steep slope on the north side of Pond A • Conducted minor inter-seeding in the four areas above P.0. Box 774018 Tel: 970 879 6260 Delivering Innovative Projects and Solutions Worldwide 1475 Pine Grove Road, Suite 109 Fax: 970 679 9048 Steamboat Springs, Colorado 80477