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Additional Sheets <br />2007 Annual Report <br />Coal Creek Resources <br />M-1988-044 <br />Schmidt Construction Company <br />Anniversary Date: March 28 <br />RECENED <br />MAR 21 2001 <br />~ ~ u, ~,yin~ of R8clanlati0n. <br />Nlmtng end Sata4y <br />Overview of Permit Yeat: During the 2006/2007 operating year all of the mining activity occurred in the <br />Upland Mining area and showed some minor expansion compared to the previous year. The heavy snows of the <br />2006-2007 winter often almost shut down all mining activity at the site. Very little mining, processing, ox sales <br />occurred during this severe winter. Snow depths reached several feet at times and access to many areas was <br />essentially impossible. At this point the amount of unxeclaimed land is probably the lowest it has been in the last <br />decade. Some changes were made in the road crossing in the South Lowland area. Also, a series of exclosures <br />were created at various locations along the stream to produce reservoirs of riparian forest so it might be <br />preserved on the property as a whole. The latter two actions were taken in conjunction with agreements with <br />the Corps of Engineers under the 404 permit. <br />Annual Report Maps: There axe two annual report maps provided this year, one fox the Lowland Ivlinirtg area <br />and one for the upland area where most of the mining is occurring. This map is prepared using the same base <br />map as the previous annual reports. <br />Affected Lands: The maps contain the necessary information regarding the amount of affected land and land <br />not yet released and the cuxxent bonded boundaries. <br />A lease extension was previously approved, as well a permit amendment, but no disturbance has <br />occurred outside the original defined permit and affected land area. Curxendy, the Arapahoe County Special Use <br />Permit is being completed. Once all approvals axe in place, work will expand to the new land and it is highly <br />likely that all mining disturbances (except the plant area) within the current permit area will be reclaimed with <br />no additional mining to occur in the original permit area. <br />To improve a serious drainage issue at the road crossing in the south end of Section 25, the crossing was <br />altered from a berm that essentially blocked the creek flow to a low water crossing which allows the stream to <br />flow. In conjunction with this, the stream channel itself was altered to a better alignment. This was done in the <br />South Lowland mining area, but no sand was removed fox processing so it was not actually mining. This action <br />will help reduce erosion in the channel, improve the riparian vegetation establishment, and allow water to flow <br />northward into a previously mined area. With a better source of water for that area the vegetation should show <br />considerable improvement and a shift more toward a wetland type of growth. However, there is sufficient sand <br />remaining on the underlying clay layer in this area that the rich wetland growth seen in mined areas further <br />downstream is not likely to develop, but it should be better than what has developed to date. <br />Revegetation: No additional revegetation work was done in the last year. Revegetation on the South Lowland <br />areas has continued to progress. <br />In accordance with agreements with the Corps of Engineers, five exclosures were established. Two of <br />these axe in the South Lowland and the other three axe west of the cuxxent mining areas. All axe in previously <br />mined locations. These exclosures will help protect selected habitat areas where riparian forest is developing. <br />Unfortunately, the cattle browse the trees and shrubs and that has limited the forest replacement. With <br />exclosures, significant portions of riparian habitat can be protected in nodules along the stream. If and when the <br />grazing is removed from the land, these nodules can provide locations for further expansion of the forest. Also, <br />these exclosures axe being monitored closely to measure the rate of recovery of the protected trees and shrubs <br />and to monitor the patterns of development. <br />Schmidt Construction 2007 Annual Report M-1988-044 Coal Creek Resources Page 1 of 2 <br />