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CATEE CONSTRUCTION COMPANY <br />P.O. Box 1908 <br />STERLING, COLORADO 80751 <br />December 17, 2002 <br />Mr. Carl Mount <br />Division of Minerals and Geology <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-86-147, Harley Pit I <br />Anniversary Date: 12/02/02 <br />FEDERAL TAX ID# <br />RECEIVED <br />DEC 2 3 2002 <br />Division of Minerals and Geology <br />This pit HAS NOT been granted a Temporary Cessation, and it <br />HAS operated more than 180 days this year. The Financial War- <br />ranty for this operation is $20,300.00; the permitted area in <br />Logan County; covers 38.00 ac. ± and the pit is not phased. As <br />required in Rule 1.6 the MINE PERMIT SIGN is at the entrance to the <br />pit and the boundary has been outlined with posts to delineate <br />the Permit Boundary. In November 2002 a Succession of Operator <br />for was filed transferring the permit from Sterling Redi-Mix Co. <br />to McAtee Construction CO. <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 enclosed ANNUAL REPORT MAP for <br />areas discussed in this report. <br />(1) We continued to mine along the souther part of the permitted <br />area, partially mining 5.66 acres ± during the last year. <br />The slopes along this side were left as a highwall since we <br />are in the process of amending this mine and once complete <br />will continue mining to the south. Most of this area is <br />part of the floor that now covers approximately 26.97 acres <br />(green). <br />(2) No reclamation was required this year. Existing exterior <br />slopes are rough graded and we will begin to final grading <br />this year. The slopes in the active mining area are un- <br />changed from last year. <br />(3) We will continue to mine in the area colored brown until the <br />mining limits are reached. Stripping will continue on area <br />above the face of the mine in the southeast part of the mine <br />