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MCATEE CONSTRUCTION COMPANY <br />P,O. Box 1908 <br />STERLING, COLORADO 80751 <br />November 7, 2006 <br />Mr, Carl Mount <br />Division of Reclamation, Mining and Safety <br />Minerals Section <br />1313 Sherman Street Suite 215 <br />Denver, Colorado 80203-2273 <br />Mr. Mount: <br />Re: Annual Report (112) <br />MLR No. M-1986-147, Harley Pit #1 <br />Anniversary Date: 12/02/04 <br />RECEIVED <br />NOV 13 7006 <br />Division of Reclamation, <br />Mining and Safety <br />This pit HAS NOT been granted a Temporary Cessation, and it <br />HAS operated more than 180 days this year. The Financial Warranty <br />for this operation is $71,755.00, the permitted area is in Logan <br />County, covers 105.55 ac. ± and the pit is not phased. The bond <br />was reevaluated when the permit amendment was approved in 2003. <br />As required in Rule 1.6 the MINE PERMIT SIGN is at the entrance to <br />the pit and the boundary has been outlined with posts to delin- <br />eate the Permit Boundary. <br />The annual report requirements in the MLRB Rules and Regula- <br />tions, and the annual review letter are addressed in the follow- <br />ing report. Please refer to the 2008 ANNUAL REPORT MAP submitted <br />with this report areas discussed in this report. <br />(1) We continued to remove material stockpiled last year. An <br />mined an additional 2.00 acres on the south side this year <br />(brown). The working face is left as a highwall as allowed <br />in the permit. This face will continue to be worked to the <br />south this year if additional materials are needed. The <br />working floor area where material is stockpiled and pro- <br />cesses covers approximately 18.42 acres (/// hatch pattern) <br />and remains unchanged from last year. <br />(2) Reclamation was completed <br />part of the site in 2003. <br />and seeding was completed <br />germinated on the seeded <br />planned. The seeding has <br />monitoring the success at <br />on 15.01 acres + in the northern <br />All sloping, recoiling, shaping <br />in that area (green). Grass has <br />Brea and are progressing as <br />been successful so we are only <br />this time. <br />(3) We will continue to mine in the area colored brown on the <br />south working face, in the direction shown on the map, <br />Stripping will continue on the area south of the mine face. <br />