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Four States Aggregates, LLC RECEIVED <br />P. Q. Box 1568 <br />CORTEZ, COLORADO 81321 JUN 0 92003 <br />(970) 565-3388 OivisionafMineralsandGealogy <br />June 2, 2003 <br />Colorado Division of Minerals and Geology <br />Department of Natural Resources <br />1313 Sherman Street, Suite 215 <br />DENVER, CO 80203 <br />(303) 866-3467 <br />SUBJECT: 2003 ANNUAL FEE AND 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, 2003, with a map and the annual fee. <br />In 2002, we were able to obtain the permits from CDOT and CDWR, and mining has <br />finally proceeded at a better rate than in 2001. During 2002, our Substitute Water <br />Supply Plan (SWSP) was approved and implemented, and a new entry was <br />constructed, together with construction of a turn lane and widened shoulder on Highway <br />145, in accordance with the CDOT permit. In the mine itself, the affected area has <br />increased from 6 acres (including approximately 5 acres stripped), to approximately 9.5 <br />acres, with approximately 0.5 acres in roadways and 9 acres in stripped, mined, and <br />stockpile/beret areas. <br />However, the delay in obtaining permits means that mining has not proceeded beyond <br />what was originally planned for 2001, and we continue to run about one year behind <br />schedule. The drought of 2001-2002 prevented the grass on the berms (which had <br />been seeded in Fall, 2001) from properly establishing itself. However, the low flows, <br />low precipitation, and reduced production greatly reduced the water consumed by <br />evaporation from exposed water surface in the pit in the last report period, because of <br />the depth to ground water. Reduced operations also consumed less water than <br />planned. This was discussed in more detail in our letter of last August. <br />During 2002, and again this spring, mining and washing of sand and gravel has been <br />done on site. Of the total area disturbed, approximately 1.25 acres has been mined. <br />Some adjustments to the mining schedule are necessary as there is tremendous <br />variation in soil depth (from 0 to 4 feet above gravel) and bedrock depth (as shallow as <br />8-9 feet below original surface). <br />