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<br />SANDCO INC <br />PO BOX 4440 <br /> <br />DURANGO CO 8li02 <br />PLANT: 970-247-1303 FAX: 970-382-9220 <br />BOOKKEEPING: 970-247-9331 FAX: 970-247-9338 <br />RED[-IvtIJC-SAND &GRAVEL-EXCAVATION <br />August 19, 1999 <br />ANNUAL MINING PLAN <br />Sandco Inc currently operates a sand surface mining operation withinlthe <br />confines of the Animas River. This leased land is known as the Willow Be d Pit or <br />Sandco Inc. Willow Bend Pit comprises of approximately five point nine pen~itted acres. <br />Mimng m this prt is done annually, typically from November first to Apnl fifl~eenth, the <br />low water flows of the year. We extract the sand from sediment <br />resulting from spring run off and other high water flow deposits. There are nc~ vegetation <br />or bank type disturbances associated with our annual mining operations wikhin our <br />pemvtted area. Any Questions please fill free to call 970-247-1303. <br />David D Dillon <br />~q,~~~~ <br />