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ANNUAL STATUS REPORT <br /> TO COLORADO STATE BORAD OF LAND COMMISSIONERS <br /> SAND GRAVEL LEASE: GL-264 (FIFTH AMENDMENT) <br /> LOWRY RANGE <br /> COAL CREEK (QUINCY AVE. SOUTH TO COUNTY LINE) <br /> SCHMIDT CONSTRUCTION COMPANY <br /> APPLICABLE YEAR: 2014 <br /> DUE DATE: JULY 15, 2014 <br /> In accordance with the requirements of Paragraph 6 of the lease and Item I.A.5 of the <br /> Operation Plan, the following information is provided as a status report for the year preceding the due <br /> date stated above. This information updates the previous annual status report information. Any <br /> updated maps presented in this report contain not only the information for the current year, but <br /> information for prior years as well. If no new map is provided then there was no change in the <br /> information provided on the previously submitted map. Thus, as conditions change, the maps are kept <br /> up to date on an annual basis without a need to refer back to previous maps. Any maps that were not <br /> updated are so indicated in this report so the most current map can be located for reference as needed. <br /> However, due to the very large changes in the fifth amendment to the lease and yet to be completed <br /> changes in the Reclamation Permit, a new map is presented in this report. Maps prepared for the 2013 <br /> report essentially conclude the configurations for the fourth amendment. This is more fully explained <br /> later. <br /> DATES OF FINAL INSPECTION FOR PREPARATION OF THIS REPORT: July 1, 2014. <br /> SUMMARY OF THE CURRENT STATUS REPORT YEAR: The 2013-2014 operation year <br /> (July 15, 2013 - July 15, 2014) was a moderately slow year for the operation. The economy was still <br /> weak, but gaining strength. Demand for sand was still low for most of the year, but in the Spring of <br /> 2014 the demand increased considerably and has remained higher than the last several years. It is still <br /> well below historical averages, but is considerably better than before. <br /> A very large reclamation project was completed and seeded in June. Although the desire was <br /> to complete it in May the size of the project, wet weather, and equipment problems delayed <br /> completion about a month. <br /> STATUS REPORT FOR CURRENT YEAR <br /> MAPS: Following is a list of the maps. The maps provided with this report are intended to <br /> completely replace the previous map(s). The original maps that were provided for amendment four <br /> are no longer relevant to the lease and operation due to the large changes in the fifth amendment to <br /> the lease. The new map is now presented in an 11x17 inch size and in full color. Due to the smaller <br /> footprint of the lease area, this smaller sheet size is suitable and the addition of color useful. <br /> Status report for 2014 due July 15, 2014 Page 1 of 10 <br />