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2013 ANNUAL REPORT <br />JAKE KAUFFMAN & SON, INC. <br />Permit No. M -1999 -069 <br />Wagner/Kauffinan Pit #3 <br />PHASE I Final release on November 30, 2012 <br />PHASE H Lined storage reservoir <br />Mining is complete, banks finished, final grading is being done. The 90 -day pump <br />test on liner was started August 21, 2013 with no leakage occurring. September 13, 2013 <br />Big Thompson River flooded filling reservoir. <br />PHASE III Small lake <br />Mining is complete, reclamation on banks is in progress. Blue section has been <br />seeded. Brown section filled in to grade. <br />FLOOD DAMAGE <br />On September 13, 2013 the Big Thompson River flooded, breached it's banks 1/4 <br />mile west of County Rd 9E, went north behind the Simpson Ponds (broke those banks) <br />then cut east across 9E flooding everything for days north and east of the bridge. The <br />water storage reservoir is entirely under water, the new lake on Phase III is completely <br />under water. <br />On December 31, 2013, the area's damage was re- evaluated. At this time there is <br />nothing that can be done until spring and further assessment can be made. <br />Mary Kauffman, Corp. Secretary <br />Jake Kauffman & Son, Inc. <br />970 -290 -4152 <br />970 - 667 -9985 (fax) <br />RECEIVFrl <br />JAN 10 2014 <br />DIVI* t of Roden .. <br />Mfte & suety <br />