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Varra Companies, Inc. <br />Office of Special Projects <br />1431 East 16'~ Stteet Greeley. Colorado 80631 Telephone (970) 353-8310 Fax (970) 353-4047 <br />AUGUST 2005 ANNUAL REPORT - M99-OOC>-Kurtz Resource Recovery & Land <br />Development Project <br />The status of operations is nearly unchanged from the previous years annual report map. <br />Extraction involves the entire Tract D Area and is expected to wntinue in this Area <br />through 2006-1, and estimated to continue in Tract D through the next yeaz, primazily in <br />the azea identified in blue on the included map. Tract E may open in part or whole <br />depending upon site limitations operative over the yeaz. <br />Additionally, stockpile activities oceupy the remainder of Tract F since last year's annual <br />report. There is no planned reclamation beyond concurrent slopping and re-soiling <br />reported and shown in previous annual reports and continuing as possible along <br />completed portions of Tract D. As extraction is completed in Tract D, concurrent grading <br />will accelerate and will be updated once it progresses beyond previously reported <br />extents.. Finished slopes are being stabilized with oats. Weed management will proceed <br />according to the June 2005 Technical Revision. <br />~~C~~~~~ <br />AUG 0 2 2006 <br />Division of Minerals and GeoloBY <br />