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future annual reports will not include comments on the riparian corridor unless something unusual <br /> happens. Future reports will only discuss conditions in the upland mining or any particular <br /> connections between reclamation areas and the stream corridor such as sediment discharge or <br /> something similar of considerable and extraordinary impact. <br /> RECLAMATION PERMIT STATUS: No changes in the permit occurred in the last year. <br /> However, large changes to the permit are in process,but none have been acted upon at this point. <br /> First is an acreage reduction request. This will remove all the land under permit that is no <br /> longer included in the lease. It will potentially also remove from the permit the reclaimed land in the <br /> separated 80 acre lease area on the south end of the originally permitted and lease site. If this occurs, <br /> then nearly 2,000 acres will be removed from the Reclamation Permit and will reduce the permit <br /> down to approximately 715 acres from over 2,600 acres. The tentative permit area is shown with a <br /> wide red outline on the status map. Except for one area that includes oil and gas activities and was <br /> previously removed from the permit, the Reclamation Permit boundary is congruent with the lease <br /> boundary. Although the permit could have been reduced a great deal more by excluding reclaimed <br /> and released land, that would produce a complex permit boundary. Therefore, it is simply easier and <br /> less complex to keep the permit boundary as consistent as possible with the lease boundary. It has to <br /> be pointed out that although the permit boundary(and the lease)contains a good deal more land than <br /> is actually needed, that does not mean that Schmidt can operate in those other areas. Operations are <br /> completely controlled by the approved operation plan in the lease and the Reclamation Permit issued <br /> by the Mined Land Reclamation Board. Operating outside the approved areas is a possible violation <br /> of State law and the permit. <br /> Once all the changes are completed to the Reclamation Permit a new copy of the Reclamation <br /> Permit will be provided and new lease base maps will be prepared, as needed. Until then, information <br /> in this report is tentative and subject to change as changes are made in the permit documents. <br /> 404 PERMIT STATUS: The 404 permit mitigation requirements were met and approved by the <br /> U.S. Army Corps of Engineers. No further analysis of the bottomland vegetation within the <br /> exclosures is required. However, this should not be taken to mean that the other requirements of the <br /> permit have been lifted and the site is now in a condition where anything anyone wants to do in the <br /> riparian corridor can proceed. Those requirements continue so long as there is a riparian corridor and <br /> a United States Clean Water Act. Any disturbances such as mining, drilling, or construction activities <br /> or any other modifications to the riparian corridor must first be approved by the Corps under the <br /> applicable and appropriate permit requirements. And the conditions of the permit whose provisions <br /> have been met are still applicable. <br /> It is important to recognize that a 404 permit such as the one issued does not actually apply to <br /> the party that was issued the permit,but applies to the land irrespective of how ownership of that land <br /> might change. Therefore, even though Schmidt has completed their responsibilities it is now the <br /> responsibility of the State of Colorado to keep the land in compliance with the terms of the permit and <br /> the Clean Water Act. In the event the State Land Board staff does not have a complete copy of the <br /> permit, one can be supplied in digital format by requesting such from Schmidt or the permit file can <br /> be reviewed at the Corps offices near Chatfield Reservoir in Littleton. As Schmidt scanned the <br /> complete and quite large file a few years ago and has everything since then, requesting a digital copy <br /> Status report for 2014 due July 15, 2014 Page 3 of 10 <br />