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GEOLOGIC CONDITIONS ENCOUNTERED: No unusual or unexpected geologic <br /> conditions were encountered in the last year. All of the sand extraction occurred within the previous <br /> mine footprint. In short,the mining went back and is cleaning out remaining sand in areas previously <br /> mined, but not completely mined out. The quality of the sand varied from excellent to fair. Some <br /> pockets of good sand have been mined that contain a greater than desirable amount of clay and silt. <br /> HYDROLOGIC CONDITIONS ENCOUNTERED: No groundwater was encountered in the <br /> mining pit operated in the past year. As has been the case in the past, accumulation of water in the pit <br /> seeps into the ground fairly quickly except where clay forms the substrate. For the most part the pit <br /> bottom remains dry. <br /> RECLAMATION PERMIT STATUS: No changes were made to the permit in the last year. The <br /> mining is proceeding in accordance with the permitted mining plan. No major shifts in the mining <br /> procedures were done due to unusual conditions. <br /> 404 PERMIT STATUS: This is the last year that this portion of this report will appear. The <br /> operation is no longer occurring anywhere in the vicinity of where 404 permitting was done or 404 <br /> permitting is needed or applies. Several years ago the remedial action required by the permit was <br /> completed and considered to be sufficient to meet the requirements. No further monitoring of the <br /> stream channel is occurring. HOWEVER, it is important to note, as has been done in the past,that <br /> the 404 permit goes with the property and not the permittee. Therefore, any future work in the Coal <br /> Creek channel by the Colorado Board of Land Commissioners or any lessees should consult the 404 <br /> permit requirements prior to altering or working in the stream channel. If in doubt, contact the U.S. <br /> Army Corps of Engineers. A complete copy of the 404 permit obtained by Schmidt was provided to <br /> the Board many years ago. Care should be exercised in causing unconsidered impact to the riparian <br /> corridor as it has recovered admirably from years of impact. In fact, one might make a case that it is <br /> in the best condition it has been in since before European arrival and the heavy impact our ancestors <br /> inflicted over many decades. <br /> MINING ACTIVITY IN THE LAST YEAR: <br /> 1. Depth of mining- In the last year, mining depths were consistent and similar to previous <br /> years. Mining depth reached down to considerable depth,but well within the maximum. <br /> Overburden production in the last year was essentially zero due to the fact that the mining <br /> occurred within previously stripped areas. <br /> 2. Backfilling- Additional backfilling of the current mining area was done in the last year. <br /> All of the backfilling occurred in the mining pit area and primarily involved the east side of <br /> the pit. That backfill now occupies most of the eastern edge of the pit. <br /> A. Depth of backfilling- The backfill that was placed is not finished backfill and <br /> therefore the current depth may or may not be final. In general,the fill depth was to a <br /> depth sufficient to get close to an estimated final depth or needed to properly shape <br /> the land for revegetation. <br /> Status report for 2016 due July 15, 2016 Page 2 of 6 <br />