2005-05-03_REPORT - M1981235 (3)

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Webster Sand & Gravel R~~~B~~~ 145 S. Toledo MAY 0 3 2005 Leadville, CO 80461 (719) 486-0427 Division of Minerals and Geology Division Of Minerals And Geology Department of Natural Resources 1313 Sherman St., Room215 Denver, Colorado 80203 Apri120, 2005 Re: Annual Fee and Report for M-81-235 (s~-~/ Ladies and/or Gentlemen: In our last report I informed the division that we were operating as the estate of Charles J. Webster and that we were working with our accountants and attorneys to set up our corporate structure. We registered the business as Webster Sand & Gravel, LLC back in November, but aze still working on fully funding the three trusts which will comprise the membership of the LLC. The delay is not the ability to fund the trusts but rather designating which assets to place in which trusts and having our accountants set up the necessary accounts. Until, that is done, we will continue to operate as the estate of Charles J. Webster. Last August, Erica Crosby inspected our pit and had several concerns which resulted in our warranty bond being raised substantially from $33,500.00 to almost $359,000.00. We were given this notice during the first part of February. I sent our bank the complete list of equipment inventory that we had appraised for the estate and Willie Bologh from Peoples Bank in Leadville is working on valuating the bulk of our equipment to satisfy the increased bond. Much of our equipment is hard to get to in order to inspect as much of it is under snow since our pit is at approximately 10,300 feet elevation. We sell out of our stockpiles from the end of October to the middle of May (we are presently still unable to operate-there is 1-2 feet of snow still at our pit). Our bank is also waiting on current financial statements. Our accountant was late getting our taxes done and is currently working on getting the necessary paperwork for our bank. We plan to do several things which we hope will lower the amount of the wazranTy bond. First, we aze planning to bring in and stockpile for future reclamation, the rest of the topsoil which Ms. Crosby mentioned we were hauling from the Homestake Trout Club. This is very fertile, black topsoil which should meet the standards of Rule 3.1.5(9). Although this rule talks about bringing structural backfill, I'm not sure how the same standazds will apply to topsoil. We will have it tested to insure that it meets whatever standazds necessary. Also, I noticed when the reclamation plan was first drawn up back in February 1982, the reclamation specialist, Mr, James McArdle, listed our clay fines which is washed out of our sand as acceptable to use with the topsoil for reclamation. 1 believe that a few inches of this covered with topsoil would make an excellent substrate