PLAN OF OPERATIONS FOR SURFACE DISTURBING BASELINE STUDIES MOUNT EMMONS PROJECT COLORADO, USA U.S. Energy Corp. P.O. Box 629 Gunnison, Colorado 81230 Distribution: 2 Copies and one electronic copy – United States Forest Service, Gunnison, CO 1 Copy and one electronic copy – Bureau of Land Management, Gunnison, CO March 31, 2010 Compilation December 7, 2010 TABLE OF CONTENTS 1.0 INTRODUCTION ............................................................................................................................ 1 1.1 Background ......................................................................................................................... 1 1.2 The Plan of Operations ........................................................................................................ 2 1.3 Potential Mine Operations. ................................................................................................. 3 1.4 Timeline .............................................................................................................................. 5 2.0 OWNER-OPERATOR AND LOCATION INFORMATION .......................................................... 6 3.0 DEVELOPMENT ACTIVITIES ...................................................................................................... 6 3.1 Geotechnical Baseline Study ............................................................................................... 7 3.1.1. Geotechnical Site Investigations ................................................................................ 7 3.1.2. Work Planned at the Points of Diversion and Storage Areas ...................................... 12 3.2 Surface Water Baseline Study ........................................................................................... 13 3.2.1. Streamflow Measurements ....................................................................................... 13 3.2.2. Water Quality Measurements ................................................................................... 13 3.3 Groundwater Baseline Study ............................................................................................. 14 3.3.1. Possible Surface Disturbance and Mitigation Measures ............................................. 14 3.3.2. Site Restoration ............................................................................................................. 15 3.4 Structures ................................................................................................................................ 15 3.5 Materials .................................................................................................................................. 15 3.6 Water Use .......................................................................................................................... 16 3.7 Solid Waste ....................................................................................................................... 16 3.8 Mobile Equipment and Workforce .................................................................................... 17 3.9 Permits and Approvals ............................................................................................................ 17 3.10 Surface Disturbance ........................................................................................................... 18 4.0 SITE CONDITIONS ...................................................................................................................... 19 4.1 Geology ............................................................................................................................. 19 4.1.1. Geology/Seismicity .................................................................................................. 19 4.1.2. Topography and Physiography ................................................................................ 20 4.1.3. Measures to Protect Scenic Values .......................................................................... 21 4.2 Land Use ........................................................................................................................... 21 4.3 Cultural Resources ............................................................................................................. 22 4.3.1. Measures to Protect Cultural Resources ................................................................... 22 4.4 Climate .............................................................................................................................. 22 4.5 Air Quality ........................................................................................................................ 23 ii 4.5.1. Measures to Protect Air Quality ............................................................................... 24 4.6 Water ................................................................................................................................. 25 4.6.1. Surface Water Hydrology ........................................................................................ 25 4.6.1.1 Carbon Creek Area .................................................................................. 26 4.6.2. Surface Water Quality .............................................................................................. 26 4.6.2.1 Carbon Creek Area .................................................................................. 27 4.6.3. Groundwater Hydrogeology .................................................................................... 27 4.6.3.1 Mount Emmons Area ............................................................................... 27 4.6.3.2 Carbon Creek Area .................................................................................. 29 4.6.4. Methods to Minimize Impacts to Water Quality ...................................................... 30 4.7 Soils ................................................................................................................................... 30 4.7.1. Methods to Minimize Impacts to Soils ..................................................................... 31 4.8 Vegetation ......................................................................................................................... 31 4.8.1. Sensitive Areas ........................................................................................................ 32 4.8.2. Threatened and Endangered and USFS Sensitive Species ........................................ 33 4.8.3. Methods to Minimize Impacts to Plants ................................................................... 34 4.9 Wildlife ............................................................................................................................. 34 4.9.1. Threatened and Endangered and USFS Sensitive Species ........................................ 35 4.9.2. Methods to Minimize Impacts to Wildlife................................................................ 36 4.10 Noise ................................................................................................................................. 36 5.0 ACCESS ROUTES ........................................................................................................................ 37 6.0 RECLAMATION ........................................................................................................................... 37 6.1 Slash Clearing ................................................................................................................... 37 6.2 Drill and Test Pit Pads ....................................................................................................... 38 6.3 Drill Hole Abandonment ................................................................................................... 38 6.4 Revegetation ...................................................................................................................... 38 6.4.1. Topsoil Application ................................................................................................. 38 6.4.2. Species Selection ..................................................................................................... 39 6.4.3. Seeding and Planting ............................................................................................... 40 6.5 Noxious Weed Control ...................................................................................................... 40 7.0 REFERENCES ............................................................................................................................... 40 iii LIST OF FIGURES Figure 2-1 Site Map Figure 2-2 Project Area U.S. Energy Claims Figure 3-1 Photo of Typical Excavator Figure 3-2 Surface Water Monitoring Locations and Access Routes Figure 4-1 Parcel Ownership Figure 5-1 Access to Geotechnical Investigation Locations LIST OF DRAWINGS Drawing No. 1a Mt. Emmons Project General Arrangement and Index Drawing No. 1b Mt. Emmons Project General Arrangement Topo Drawing No. 2 Mt. Emmons Project Potential Paste Plant Site Drawing No. 3 Mt. Emmons Project Reservoir No. 1 Drawing No. 4 Mt. Emmons Project Potential Mill Site No. 1, Water Treatment Plant No. 2 Drawing No. 5 Mt. Emmons Project Potential Mine Portal Drawing No. 6 Mt. Emmons Project Potential Mill Site No. 2 Drawing No. 7 Mt. Emmons Project Potential Tailing Facility No.1, Reservoir No. 2 Drawing No. 8 Mt. Emmons Project Potential Tailing Facility No. 2 Drawing No. 9 Mt. Emmons Project Reservoir 3 Drawing No. 10 Mt. Emmons Project Potential