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<br /> <br />SANDCO INC <br />PO BOX 4440 <br />DURANGO CO 81302 <br />PLANT: 970-247-1303 FAX: 970-382-9220 <br />BOOKKEEPING: 970-247-9331 FAX: 970-247-43`38 <br />REDI-MDC-SAND & GRAVEL-EXCAVATILTN <br />July 12, 2000 <br />ANNUAL MINING PLAN <br />Sandco Inc currently operates a sand surface mining operation within the <br />confines of the Animas River. This leased land is Known as the Walker Pit or Sandco Inc. <br />Walker Pit comprises of approximately three point four-one permitted acres. <br />Mining in this pit is done annually, typically from November first to April fifteenth, the <br />low water flows of the year. We extract the sand from sediment build-up <br />resulting from spring runoff and other high water flow deposits. There are no vegetation <br />or bank type disturbances associated with our annual mining operations within our <br />permitted area. Any Questions please fill free to call 970-247-1303. Thank-you. <br />David D Dillon <br /> <br />