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ANNUAL STATUS REPORT <br /> TO COLORADO STATE BORAD OF LAND COMMISSIONERS <br /> SAND GRAVEL LEASE: GL-264 (FIFTH AMENDMENT) <br /> LOWRY RANGE <br /> COAL CREEK (QUINCY AVE. SOUTH TO COUNTY LINE) <br /> SCHMIDT CONSTRUCTION COMPANY <br /> APPLICABLE YEAR: 2017 <br /> DUE DATE: JULY 15, 2017 <br /> In accordance with the requirements of Item I.A.5 of the Operation Plan, the following <br /> information is provided as a status report for the year preceding the due date stated above. This <br /> information updates the previous annual status report information. Any updated maps presented in <br /> this report contain not only the information for the current year, but information for prior years as <br /> well. If no new map is provided then there was no change in the information provided on the <br /> previously submitted map. Thus, as conditions change, the maps are kept up to date on an annual <br /> basis without a need to refer back to previous maps. Any maps that were not updated are so indicated <br /> in this report so the most current map can be located for reference as needed. <br /> DATES OF FINAL INSPECTION FOR PREPARATION OF THIS REPORT: July 7, 2017. <br /> SUMMARY OF THE CURRENT STATUS REPORT YEAR: The 2016-2017 operation year <br /> (July 15, 2016 -July 15, 2017) was a fairly good year for the operation. Demand for sand was still <br /> low but continued improving for most of the year. It is still well below historical averages. Not a lot <br /> changed in the operation this year when compared to previous years. The 2014 reclamation area is <br /> showing excellent development. There is currently a high demand for construction fill material <br /> throughout the Front Range Urban Corridor and those that do produce it are even rationing it because <br /> the availability is so poor. This operation formerly supplied large volumes of construction fill to the <br /> south Metro and Aurora area. Unfortunately, this class of material is no longer available or cannot be <br /> found in the remaining mining area. As a result, orders have to be turned away as nothing is <br /> available. The excellent masonry sand and a couple of other products are still produced and sell well, <br /> but the lack of construction fill has considerably impacted the production volume here. <br /> STATUS REPORT FOR CURRENT YEAR <br /> MAPS: Following is a list of the maps. The maps provided with this report are intended to <br /> completely replace the previous map(s). The original maps that were provided for amendment four <br /> are no longer relevant to the lease and operation due to the large changes in the fifth amendment to <br /> the lease. The new map is now presented in an I lxl7 inch size and in full color. Due to the smaller <br /> footprint of the lease area, this smaller sheet size is suitable and the addition of color useful. <br /> Status report for 2017 due July 15, 2017 Page 1 of 6 <br />