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the north leading to it has one small breach that requires repair. <br />As a result of the TR approved in 2006, the gold operator has installed a coagulant <br />system to precipitate sediment as shown on the attached Annual Report Map. This <br />system did work in 2006 and is planned to be continued in 2007. The two ponds <br />immediately below the introduction of the coagulant do require clean out prior to <br />operation in 2007. In 2006, mining continued in Phase 1 and part of Phase 2. See the <br />Annual Report Map. The overburden from Phase 2 is planned to fill Phase 1. Mining <br />will later continue southeast according to the sequence shown. Also the remains of the <br />previous process plant that burned were removed from the site in the past year. <br />(2) The gravel operator has performed no reclamation on the previous 110 permit area <br />or any other area in the pit, however, the extraction of gravel from past gold mining <br />and the stockpiling of fines will allow later reclamation to be very good. The gold <br />operation has also not prepared any new reclamation other than backfilling of some <br />previously mined areas, which are only a portion of Phase 1. <br />(3) For the upcoming year, the gravel operator plans to continue mining the northern <br />end of the reserve area as well as sell some of the washed gravel from the gold <br />operation. The gold operator plans to begin mining Phase 4 and to complete mining of <br />Phase 1. No new disturbance is planned for either operation in the upcoming year. <br />(4) For the upcoming year, the gravel operator plans to salvage substitute topsoil from <br />the settling ponds. It is planned that backfilling and grading of the old 110 permit area <br />will be done in 2006. Salvaged substitute soil will then be placed on this area to the <br />extent that it is excavated. The gold operator plans to begin reclamation of Phase 1 as <br />Phase 2 is mined. <br />The gold operator will also salvage substitute topsoil from the settling ponds and <br />stockpile this material for reclamation. If grading is complete on Phasel, excavated silt <br />(substitute topsoil) may be placed directly on this area. <br />(5) The current contact for this operation is: <br />Dennis Ducommun Phone # (970) 726-5388 <br />Ducommun Business Trust <br />P.O. Box 848 <br />Fraser, Colorado 80442 <br />Enclosed is a check for $550 for the annual fee. <br />Sincerely, <br />~~ i <br />Greg Lewicki <br />Greg Lewicki and Associates PLLC <br />cc: Dennis Ducommun <br />