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Y <br />r~ <br />ANNUAL REPORT <br />Operator: United Companies of Mesa County <br />Operation: 15 Road Pit <br />File Number: M-2002-114 <br />Anniversary Date: March 13, 2004 <br />All of the necessary permits were approved near the end of 2003. The Army Corp <br />of Engineers was the last one and it was signed in November of 2003. <br />The stripping of the pit and a project to improve the intersection of U. S. Highway <br />6 and the pit haul road both started in December of 2003. <br />Prior to beginning mining in our first area, top soil and overburden was removed <br />and stockpiled separately. We constructed a temporary settling pond for our pit <br />dewatering first thing. Our first regular settling pond is nearing completion at the <br />date of this report. <br />Other operations that have been done associated with the pit include: haul road <br />construction, installation of scales and scale house for weighing trucks, and water- <br />power-phone to the scalehouse. United Companies , as part of the permit <br />requirements, recently completed opening up a side channel of the Colorado River <br />to allow a small amount of water to flow past our pit dewatering discharge point - <br />the reason being to dilute a possible high selenium content in our discharge. To <br />date the monthly pit discharge water samples show less than two micrograms per <br />liter while the river upstream of the pit shows around five micrograms per liter. <br />We are currently working on developing a wetlands area on the extreme southeast <br />part of the property and should get the area seeded in the next two weeks. <br />Mining and crushing is on going at this time producing aggregates for roadbase, <br />asphalt, and concrete. United Companies expects this location to be active for 15 <br />to 20 years. The end result being a nice area with four large lakes separated by <br />enough property to allow some light commercial development. <br />