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COLORADO DIVISION OF MINERALS AND GEOLOGY <br />ANNUAL REPORT FOR <br />NELSON MINING RESOURCE <br />M -2005 -089 <br />ASPHALT SPECIALTIES CO., INC. <br />MARCH 1, 2014 TO MARCH 1, 2015 <br />1. TOTAL ACRES IN PERMIT AREA: 73.0 <br />2. TOTAL PERMITTED MINEABLE ACRES: 66.0 <br />3. CURRENT TOTAL ACRES DISTURBED: APPROX. 33.0 <br />4. TOTAL ACRES MINED DURING REPORT YEAR: 4.5 <br />5. CURRENT TOTAL ACRES IN VARIOUS STAGES OF RECLAMATION: 0 <br />6. TOTAL ACRES RECLAIMED DURING REPORT YEAR: 0 <br />7. APPROXIMATE ACREAGE TO BE MINED IN NEXT REPORT YEAR: —2.0 <br />8. APPROXIMATE ACREAGE TO BE RECLAIMED IN NEXT REPORT YEAR: <br />—3.0 <br />All mining during the reporting year occurred in an area that had been disturbed <br />previously (overburden removed) so no new areas were opened -up or disturbed during <br />the reporting year. A total of approximately 33 acres have been mined for sand and gravel <br />and/or disturbed with the removal of overburden (O.B.) on the site. <br />As with weed control on the OB stockpiles last year, we have allowed the landowner's <br />cattle to graze the stockpiles during this reporting period. The cattle have once again done <br />a very efficient job in keeping the stockpiles very weed -free while compacting the OB to <br />further reduce erosion. With using the cattle for weed control on these OB stockpiles, the <br />root mass of the weeds stays intact and "holds together" the soil. It has been a very <br />successful solution for weed control on these stockpiles. Backfilling of a portion of the <br />pit area may occur during the next reporting period. <br />Mining should resume in 2015 during the construction season with another <br />approximately 2 acres being mined in the central north area where the former fixed gravel <br />plant was located. That area has already been disturbed due to OB removal and we utilize <br />a completely mobile /portable gravel mining plant at this and our other mining sites. <br />The annual report map accompanies this report and DRMS form. <br />Sufficiency of Value of Financial Warranty <br />The permittee holds a Financial Warranty for the permit through Great American <br />Insurance Company in the full amount of $1,097,165.51, a figure sufficient to achieve the <br />