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Four States Aggregates, LLC <br />P. 0. Box 1568 <br />CORTEZ, COLORADO 81321 <br />(970) 565-3388 <br />May 25, 2006 <br />Colorado Division of Minerals and Geology RECEO~~® <br />Department of Natural Resources JUN 15 1006 <br />1313 Sherman Street, Suite 215 <br />DENVER, CO 80203 Division o(Minerals and Geology <br />(303) 866-3467 <br />SUBJECT: 2006 ANNUAL REPORT FOR M-2001-001 (LINE CAMP PIT) <br />Dear Ladies and Gentlemen: <br />Enclosed is the Annual Report form for the Line Camp Pit, M-2001-001, for the reporting <br />year ending May 31, 2006, with a map. The annual fee is enclosed. <br />In 2005, we were able to proceed fairly much as planned, as far as mining and <br />production, and have still not fully caught up from the delays earlier in the project. In the <br />mine itself, the affected area has increased from 15.7 acres to approximately 17.5 <br />acres, with approximately 0.51 acres in roadways and 12.8 acres in stripped and mined <br />areas, and 4.2 acres in the perimeter stockpile/beret areas, which were extended by a <br />total of 300 linear feet. 2.3 acres will be actively mined in 2006, with the remainder in <br />stockpiles, plant site, roads, berms, and ponds. A portion of the site is being used to <br />store rock removed from the Hwy 145 right-of-way in a CDOT project this spring. An <br />area of 0.13 acres remains now at or near final reclamation slope/topography. <br />We are now approximately at the point where mining was originally planned to be done <br />in early 2004, so we are now about iwo years behind schedule. Because of lack of <br />adequate success in vegetation on the berms, additional measures to continue to <br />prevent erosion have been implemented, and it is planned to reseed with an alternate <br />seed mix (listed in the original permit application) this Fall. Agronomists believe this <br />alternate mix may do better in the cool, shadowed soil on the west side of the berms. <br />Weed control efforts began in early May and will continue to be emphasized.Erosion <br />continues to be minimal, and there has been no discharge of sediment into ponds or off- <br />site. <br />During 2005, mining was done during the summer and fall months. This spring, <br />washing of sand and gravel (from stockpiles) has been done on site; mining will resume <br />later this year. Fuel tanks and other support equipment has been relocated in <br />preparation for that, as shown in the attached map. The need to expand the actual <br />mined area has been limited in large part by a deeper deposit than originally calculated <br />