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r <br />RFd~ <br />?``-- q~ca l ~~O <br />ANNUAL REPORT OF GCC RIO GRANDE TO COLORADO DIY1;y~gN OFS' ~?r~~ <br />MINERALS AND GEOLOGY M'~e~d~ 'S <br />August 29, 2005 Jd 9~cep~~aY <br />Pursuant to C.R.S. 34-32-116, as operator and permittee holder of a Colorado Mine Land <br />Reclamation permit, GCC Rio Grande submits the following second Annual Report to the <br />Colorado Division of Minerals and Geology for Permit M-2004-004. <br />A. BACKGROUND INFORMATION <br />Mining has not yet commenced at GCC Rio Grande's Pueblo portland cement <br />manufacturing facility and limestone mine. However, GCC Rio Grande, Inc. continues to <br />diligently work toward finalization of all permitting effort necessary for construction and <br />operation of the Pueblo facility. GCC Rio Grande has commenced work on all required <br />conditions of the Mined Land Reclamation Board {MLRB) pertaining to permit approval, <br />successfully negotiated the finalization of the required $5 Million MLRB reclamation bond, <br />sought and obtained agreement on a proposal to address Lime Road issues with Pueblo County, <br />conducted exploration activities of the mineral resource at the site for the first phase of design of <br />facility equipment, completed an extensive groundwater well drilling and testing program, and <br />initiated the process for obtaining a permit for a domestic wastewater system. <br />B. SPECIFIC SPECIAL USE PERMIT -RELATED ACTIVITIES <br />Since receiving the County Special Use Permit and the State of Colorado air permit, GCC <br />Rio Grande has been actively engaged in a continuous program of coordinating and pursuing all <br />state and federal permitting and construction activities necessary for the facility. These activities <br />have involved the expenditure and commitment of substantial financial resources towards <br />completion of the project. <br />Federal, State, or local permit applications, approvals, amendments: <br />a. Ait Quality Construction Permit: GCC Rio Grande received a Prevention <br />of Significant Deterioration ("PSD") permit from the Colorado Air Pollution Control Division of <br />the Colorado Department of Public Health and Environment. A copy has been provided to the <br />Department. GCC Rio Grande sought this permit early in the process understanding that several <br />other planning and permit processes would be influenced by applicable air quality requirements. <br />The PSD Permit enables GCC Rio Grande to adequately plan for and seek the other related <br />approvals for mining, reclamation, water supply and access. Earlier this year, GCC Rio Grande <br />"commenced construction" pursuant to the PSD permit and the Special Use Permit. <br />b. Storm Water Discharge Permit: GCC Rio Grande applied for a renewal of <br />its Storm Water Discharge Permit on March 28, 2002. Pending processing of its application, <br />GCC Rio Grande has maintained this approval through payment of an annual fee to the Colorado <br />Department of Public Health and Environment. This current year's annual payment for this <br />permit was recently made on July 20, 2005. <br />DN:32109860.1 <br />