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<br />ANNUAL REPORT <br />Operator: United Companies of Mesa Couhty <br />Operation: Norwood Pit <br />File Number: M-1988-037 <br />Anniversary Date: May 25, 2004 <br />This pit was active during the report yeaz, although, not year round. United was in the pit <br />twice in 2003 and we plan on mining once, maybe twice ,depending on the mazket, <br />during the next report year. We are at this location now for the first time this yeaz. <br />Activities this yeaz will include gravel crushing, stockpiling, and washing. We will also <br />have a small portable asphalt plant set up in the pit for a short while to supply both <br />CDOT and the asphalt needs of United projects in the Telluride area. <br />This time we are continuing mining the Phase 2 area. Activities so far include stripping a <br />bit more Phase 2 top soil (in a easterly direction) adding to our existing topsoil stockpile. <br />This first visit includes operation of our wash plant. We will be installing additional pipe <br />to run tailwater from the owners field to our wash plant fresh water pond. The wash <br />plant recycles water by use of a series of settling ponds to clear up the dirty water which <br />then is fed back into the fresh water pond and reused. <br />