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RECEIVE® <br /> JUL 912014 Page 3 of 5 <br /> DIVISION OR RECLAMATION, 112c Annual Report <br /> MAO <br /> Permittee Name: Varra Companies,Inc. Permit Number: M-2010-049 <br /> Operation Name: Western Sugar Reclamation County: Weld <br /> Land Development Project <br /> Annual Fee Due: $791.00 Anniversary Date: August 1, 2014 <br /> Permit Acreage: 102.18 Current Bond Amt: $292,201.00 <br /> According to C.R.S. 34-32.5-116 or 34-32-116,each year,on the anniversary date of the permit, an operator shall submit <br /> the Annual Fee,an Annual Report and Map showing the extent of current disturbances to affected land,required <br /> monitoring information,reclamation accomplished to date and during the preceding year, any new disturbance that is <br /> anticipated to occur during the upcoming year, any reclamation that will be performed during the upcoming year,the <br /> dates for the beginning of active operations,and the date active operations ceased for the year. <br /> Information contained in this report will be reviewed by the Division upon receipt and prior to the next compliance <br /> inspection of the site. If,while completing this report,you learn that your site is not in compliance with the rules and the <br /> act, it is advisable that the issues be rectified promptly to avoid possible enforcement action. <br /> SUMMARY NARRATIVE: While the;QMLR permit was approved 17 July 2011, Operations did not commence until <br /> apx. February 2012; opening extraction if Tract B,while clearing the effects of the previous owner in Tract A,to make <br /> the ground suitable for establishment of plant site operations and related product stockpiles. All lands contained within <br /> the extraction limits of Tracts A and B are presently affected. Soils salvaged from both locations are stockpiled along the <br /> most southern extent of Tract A. Early in 2013, extraction moved into Tract C, and by late 2013 into Tract D. Dry plant <br /> operations are active in Tract A,while materials requiring wet plant operations are taken via internal access roads to the <br /> adjacent Durham operation M-1978-056 for processing. Reclamation of Tract B should advance in 2014-15 upon <br /> approval of a forthcoming Technical Revision providing for the lining of completed basins. <br /> 1. Is the site identification sign posted in accordance with Rule 3.1.12(l). YES NO <br /> 2. Is the affected area boundary clearly marked in accordance with Rule 3.1.12(2). YES NO <br /> 3. Is the mine site in final reclamation(all material extraction and stockpile removal is complete)? YES NO <br /> If"YES,"please note time limits related to completion bf reclamation,Rule 3.1.3. <br /> 4. What was the date of last excavation,processing or hauling activity at the mine? On-going <br /> 5. Does the mine operate more than 180 days per year? (aD NO <br /> If"NO",please review Rule 1.13 to assure that your mine is in compliance. <br /> 6. Has this mine been granted: a) approval of TEMPORARY CESSATION Status? YES NO <br /> b)approval for INTERMITTENT OPERATION? YES NO <br /> 7. Number of acres currently affected(mining+incomplete and or unreleased reclamation). 75.02± <br /> NOTE: This acreage was mis-reported in the prior year. This will correct and update the status of affected lands: <br /> All tracts are currently affected,as follows: <br /> 20.84± Acres of Planned Extraction—Tract A <br /> 12.88± Acres of Planned Extraction—Tract B <br /> 29.31± Acres of Planned Extraction—Tract C <br /> 11.99± Acres of Planned Extraction—Tract D <br /> 75.02± Acres of Disturbance—TOTAL <br />