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Additional Sheets <br />2005 Annual Report <br />Coal Creek Resources <br />M-1988-044 <br />Schmidt Construction Company <br />Anniversary Date: March 28 <br />Overview of Permit Year: During the 2004/2005 operating year all of the mining activity occurred in the <br />Upland Mining area. Mining in the South Lowland Mining area was completed early in 2003. Final reclamation <br />of the last mining area in the South Lowland Mining is being implemented. However, some small additional <br />adjustments need to be made in the South Lowland area. Mining in the upland areas expanded considerably. <br />The entire northwestern portion of the permit was removed from the permit. A major amendment is being <br />prepared to include new land that was leased in 2004. <br />Annual Report Maps; There are two annual report maps included in this report. One map provides the <br />information for the South Lowland area. All affected land in the South Lowland area is now in reclamation <br />status, but some minor modifications need to be made. <br />The other map shows the entire affected land area in the Upland Mining Area. Reclaimed and released <br />land as well as reclaimed but not yet released land are shown. The current operational areas are shown and the <br />land removed from the northwestern portion of the permit is indicated on the upland map. This report will be <br />the last report that will show the area removed from the permit. <br />Affected Lands: The maps contain the necessary information regarding the amount of affected land and land <br />not yet released and the current bonded boundaries. <br />A lease extension has been approved. The area requested for new leasing is based upon the results of <br />previous exploration performed under two notices of intent. A major amendment to this permit will likely be <br />submitted in the very near future. <br />Revegetation: No additional revegetation work was done in the last year. Revegetation on the South Lowland <br />areas has continued to progress. <br />The amount of land that has been graded and topsoiled has increased considerably, but as of the date of <br />this report, seeding has not been done. <br />Work Anticipated in 2005/2006: Upon approval of the new lease area, all current operations, except for the <br />processing plant, will be concluded and mining will proceed in the new lease area. There is little remaining <br />mineable sand in the current permit area. In the South Lowland, some stream realignment and drainage <br />modifications are needed and will be implemented. In 2004, several very large thunderstorms produced <br />extremely high flows in Coal Creek and in some of the tributaries. Although current mining and reclamation <br />areas suffered only minor effects, Coal Creek and especially some tributaries experienced moderate to severe <br />erosional damage. In the South Lowland area it was found that previous mining and the existing road across <br />Coal Creek (not exclusively used by the operator, but also by oil and gas, and livestock lessees) revealed a <br />problem with the stream alignment and culvert placement. This will be corrected. These corrections will <br />enhance the development of wetlands downstream from the road crossing. Also, another crossing of a tributary <br />that experienced the most damage needs some repair. None of these damages were related to the mining <br />operation ox involve facilities that exclusively serve the mining operation. <br />Bonding: This operation is covered under a self bonding arrangement <br />Schmidt Construction 2005 Annual Report M-1988-044 Coal Creek Resources Page 1 of 1 <br />