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Daniels Sand Pit <br />2006 Annual Report RECEIVED <br />Continental Materials Corporation DEC 282006 <br />(Transit Mix Concrete) Division of Reclamation, <br />M-1973-007-SG Mining and safety <br />Anniversary Date: January 7 <br />Overview of Permit Year: Throughout the 2006 year, activity at this site remained <br />steady due to the active construction materials market. Mining in phase 4E is <br />essentially finished except fox the vicinity of the Fountain Mutual Ditch. The ditch <br />will be relocated prior to merging Phases 4E and 5E. Mining has proceeded <br />northward into phase 5E and slightly into Phase lE(north). Discussions between the <br />county, a local water district, and the operator regarding the construction of a <br />reservoir in the phases south of the Fountain Mutual Ditch have occurred. It appears <br />this is feasible, but much more must be decided before a permit change can occur. It <br />is possible a permit change will be submitted sometime in 2007. <br />Annual Report Maps: As has been the case in the past, two annual report maps are <br />provided; one fox the west side and one for the east side of Academy Boulevard. <br />Please note that there is a major change in the permit boundary and affected land on <br />the west side of Academy. This was implemented during the summer of 2006 after it <br />was decided by the Division that the processing plant area did not need to be in the <br />permit. The settling basin on the north end of the west side and the outlet of the <br />conveyor from the east side are still included as permitted and affected land. <br />Affected Lands: Please refer to the enclosed maps for affected land acreage. The <br />actual affected land acreage did not change much in the last year as operations axe <br />primarily occurring on land that was previously affected. <br />Revegetation: The site is stable and not subject to erosion. Drainage is contained <br />within the pit. <br />Expected Activity (2007): Transit Mix expects to continue mining in phase 5E and <br />a short distance into Phase lE(north) fox the duration of 2007. The direction of <br />mining in this phase will be north and west. The amount of activity at this site should <br />continue to be steady, given the current construction market. <br />Bonding: This operation is covered by aself-bonding arrangement. <br />