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thistles are having a banner year and a portion of the plant site where thistle, <br />knapweed, and a small amount of spurge are present. <br />FW Other base maps did not need modification even though they cover the larger <br />original area. The information is still relevant for the small footprint of the lease. <br />GEOLOGIC CONDITIONS ENCOUNTERED: No unusual or unexpected geologic <br />conditions were encountered in the last year. The deposit continues to exhibit a fairly high degree of <br />variability but some reasonably good pockets of sand have been found. These were followed first to <br />the north along the eastern edge of the mining area closest to the small drainage and are now turning <br />to the west away from the edge in hopes of curling around and into the back of a zone where deep <br />clay seams have been found. It is thought that the far side of this pocket of clay contains good sand <br />and it can be approached from the north side, thereby avoiding a need to mine through the clay seams <br />with little or no production of sand in the process. So far, so good. <br />HYDROLOGIC CONDITIONS ENCOUNTERED: No groundwater was encountered in the <br />mining pit operated in the past year. Flows in Coal Creek were generally fairly normal during the <br />winter, but increased markedly as precipitation increased in the Spring of 2015. Other tributaries of <br />Coal Creek that join the main stream on this property have carried a good deal of water at times <br />during the unusual 2015 moisture influx. But no "disasters" have happened. As has been the case in <br />the past, accumulation of water in the pit seeps into the ground fairly quickly except where clay <br />forms the substrate. For the most part the pit bottom remains dry. <br />RECLAMATION PERMIT STATUS: Changes were made to the permit as a result of the new <br />lease requirements. The complete permit was edited to remove all irrelevant references to old <br />requirements that no longer apply or references to property that is no longer in the lease. With the <br />release of the South Lowland from the permit bond those portions were also subsequently removed <br />and that area is no longer relevant to the permit or the lease. Minor changes were made to the mining <br />plan for the remaining mining area, but these were more refinements than changes. The reclamation <br />plan remained as stated previously with the only modifications being for references to lands that no <br />longer are in the lease or methods that are no longer relevant or sensible. <br />404 PERMIT STATUS: As stated in previous reports, the 404 permit mitigation requirements <br />were met and approved by the U.S. Army Corps of Engineers. No further analysis of the bottomland <br />vegetation within the exclosures is required. However, this should not be taken to mean that the other <br />requirements of the permit have been lifted and the site is now in a condition where anything anyone <br />wants to do in the riparian corridor can proceed. Those requirements continue so long as there is a <br />riparian corridor and a United States Clean Water Act. Any disturbances such as mining, drilling, or <br />construction activities or any other modifications to the riparian corridor must first be approved by <br />the Corps under the applicable and appropriate permit requirements. And the conditions of the permit <br />whose provisions 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 rather applies to the land irrespective of how ownership of <br />that land might change. Therefore, even though Schmidt has completed their responsibilities it is now <br />the responsibility of the State of Colorado to keep the land in compliance with the terms of the <br />permit and the Clean Water Act. In the event the State Land Board staff does not have a complete <br />Status report for 2015 due July 15, 2015 Page 2 of 10 <br />