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ANNUAL STATUS REPORT <br />TO COLORADO STATE BOARD OF LAND COMMISSIONERS <br />SAND GRAVEL LEASE: GL-264 (FOURTH AMENDMENT) <br />LOWRY RANGE <br />COAL CREEK (QUINCY AVE. SOUTH TO COUNTY LINE) <br />SCHMIDT CONSTRUCTION COMPANY <br />APPLICABLE YEAR: 2006 <br />DUE DATE: JULY 15, 2006 <br />In accordance with the requirements of Pazagraph 6 of the lease and Item LA.S of the <br />Operation Plan, the following information is provided as a status report for the year preceding the <br />due date stated above. This information updates the previous annual status report information. <br />Updated maps presented in this report contain not only the information for the current year, but <br />information for prior yeazs as well. If no new map is provided then there was no change in the <br />information provided on the previously submitted map. Any maps that were not updated ate so <br />indicated in this report so the most current map can be located for reference as needed. <br />DATE OF FINAL INSPECTION FOR PREPARATION OF THIS REPORT: <br />July 7, 2006 <br />SUMMARY OF THE CURRENT STATUS REPORT YEAR: The permit amendment for the <br />new lease azea was submitted and approved by the Division of Minerals and Geology, but the local <br />government approval still needs to be acquired. Production of sand continued at a rate similaz to past <br />years, although new sand deposits are becoming hard to find within the fully permitted area. No <br />work can begin in the new lease azea until the local government approval is acquired. <br />Resolution of the long-standing dispute over the 404 permit has been resolved and a plan is <br />being implemented to comply with the new requirements. A low water crossing was established at <br />the road crossing in Section 25 which will eliminate the retention of water behind the road and allow <br />for flow through of surface runoff to improve the vegetation immediately north of the road crossing. <br />Five fenced areas have been established to create refugia for cottonwood and willow establishment <br />along the stream when and if the cattle are removed from the site or better management of grazing in <br />the riparian corridor is implemented. These sites are being analyzed quantitatively to monitor growth <br />within each azea. <br />Two large areas of mined pits were graded, topsoiled and seeded and each area blends very <br />well with surrounding topography. Unfortunately, drought conditions as severe as 2002 or worse <br />have occurred and it is not known how successful the revegetation will be. Increased moisture from <br />an early and intense monsoonal flow from Mexico improved the situation, but if the rest of the <br />summer continues as dry and hot as June was, the eazly July rains will not mean much. Subsoil <br />moisture conditions continue to be extremely dry. <br />Tamarix was discovered in the azea immediately north of the road crossing. Further <br />investigation up and down stream from this area indicates that the road crossing was the site of origin <br />and it has been determined that the introduction occurred in either 2002 or 2003, probably the latter. <br />Due to the small size of the population, mechanical control is recommended followed by continued <br />Status report for 2006 (July 15, 2006) Page 1 of 13 <br />