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FEB-08-2007 11:47 MEURER & RSSOCIRTES 3039853800 Meurer' ~ R ASSOCIATES. /NC~ J ' 143 Union Bdulevetd 3urte 600 LaKewpotl, CD 80226 303.9&5.3636 hi pp~~ bsf ~~ ~ q 303.985.3800 far ~~~ ~Y \~ ~.. wvNr.meureccum FEB 0 8 2007 ~ February 8, 2007 wslonofRecla mation, Mining and Safety Mr. Jim Dueler Colorado Division of Minerals and Geology 1313 Sherman Street, Room 215 Denver, CO 80203 RE: Annual Report ~ ,/ DMG Permit Amendment No. M-1982-015, AM-1 Job No. 3811-DMG Dear Mr. Dupter, On behalf of Carma Bayshare, LLC, Meurer & Associates is submitting this Annual Report letter for the DMG's permit number M-1982-015, which was originally permitted under Siegrist Construction Company. A permit amendment was approved as Amendment O1 on September 25, 2006. A Succession of Operators Approval was granted by the DMG on October 25, 2006. The new operator is now Carma gayshore, LLC. The anniversary of the original permit is December 10. We understand that an Annual Report is due each year at that time. The report should address any activities that have occurred within the permit area. No reclamation activities occurred in the permit area between December 10, 2005 and September 2006. The purpose of the permit amendment that was approved in September was to address grading changes in and around the existing gravel pits; and to add the construction of a slurry wall around the pits. Some onsite grading began at the end of September and construction of the slurry wall began October 17, 2006. Tha slurry wall is currently under construction. We anticipate its completion by the end of February, 8t which time the 90-day testing period will begin. We have been in contact with David Nettles of the Division of Water Resources regarding the slurry wall testing. 6:1381113611-0MG Farmi[13811 DMG Annual RBpon Lbtteodoc