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ANNUAL REPORT <br />Permit No: M-1981-057 <br />Operation Name: Sprague-Red Lyons <br />ED <br />JUN 0 7 2002 <br />Division of Minerals and Geology <br />Map Summary: There have been no changes to the most recent maps on file with the Division of Minerals <br />and Geology. <br />Current Disturbances: There have been no changes to the current disturbances reflected on the maps on <br />file with the Division of Minerals and Geology. <br />New Disturbances for the Upcoming Year: We do not anticipate significantly varying our currently <br />disturbed areas beyond what we have previously mapped for the Division of Minerals and Geology. As of the <br />date of this report, there are no plans to open-up any new quarrying areas on the lands contained under this <br />permit. <br />Reclamation Accomplished To Date_and During the Preceding Year: <br />To Date: All reclamation "to date" has been reported to, and is in the files of, the Division of <br />Minerals and Geology. <br />During the Preced-ng Year: The quarries in Lyons were being mined on an intermittent basis and <br />we did not actively reclaim the areas last yeaz. Many of the areas in the Lyons quames have, over the years, <br />spontaneously reclaimed themselves without any active reclamation on our part. As Mother Nature takes its <br />course and tress and native vegetation re-seeds itself into disturbed azeas, the trees, plants and grasses are <br />encouraged to grow and we try not to re-disturb these areas. <br />Reclamation Planned During the Coming Year: At this time, no reclamation is anticipated to occur <br />for these quames in the coming year. Limited mining is conducted each year, which results in minimal <br />additional disturbance to the area. Any reclamation that is undertaken in the next year will most likely be for <br />ground stabilization in the quarries rather than final reclamation. <br />In accordance with our permit, reclamation will occur in stages as the quames aze depleted. It is <br />difficult, however, to determine a timetable for the actual depletion of an area or part of an area in our quarries. <br />As preparation for future reclamation, we regularly participate in the Conservation Tree Planting <br />Program sponsored by the Colorado State Forest Service in conjunction with the Big Thompson Soil <br />Conservation District. With this program we are able to purchase seedlings and grow them for future replanting <br />in our quarries according to the plans the forest service has developed for conservation purposes including <br />erosion control and reforestation. <br />Operations Status: We operate the Lyons quames on an intermittent basis. Mining in these quames <br />occurs less than 180 days per year when the weather is fair and the azea can be typically found without snow, <br />frost, ice, much precipitation, extremely low temperatures or high winds. Therefore, we have no concrete <br />beginning or cessation dates to report. <br />Sufficiency of Financial Warranty; Our reclamation bond is guaranteed by an irrevocable letter of <br />credit issued by Berthoud National Bank of Berthoud, Colorado, and on file with the Division of Minerals and <br />Geology, acknowledging the liability at $26,500.00. We believe at this time that this is a sufficient value. <br />Red 2002 <br />