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MINED LAND RECLAMATION ANNUAL REPORT Date: May I5, 2003 R~V~IVE~ Permit Number: M-2002-020 Operation Name: 25`" Avenue Site MAY 0 6 2003 Permittee: City of Greeley Division of Minerals and Geology 1. Extent of current disturbances. Disturbances that occurred in 2002 are related to the installation of asoil-cement-bentonite slurry wall designed to cut off the flow of groundwater into the two existing gravel lakes on the Greeley property subject to the mining permit. The construction on the slurry wall began in the beginning of June 2002 and was completed in November 2002. Since the slurry wall was completed, the existing groundwater lakes on the property owned by Greeley have been drained so that Greeley could begin testing of the slurry wall as required by the Colorado State Engineer's Office. The test requires the lakes to be drained and any inflows into the drained lakes be measured fora 90-day period to determine the amount of seepage through the slurry wall. The 90-day period is scheduled to begin during the week of April 14'". In order to measure the inflow to the site, dewatering trenches have been excavated on-site to allow drainage of water to a central location for measurement. All material resulting from the digging of trenches on the site have been stockpiled next to the trench. No sand and gravel has been removed from the site in 2002. 2. Reclamation accomplished to date and during preceding year. The reclaimed end use for the area under the mining permit is water storage. The reclamation accomplished to date has revolved around the construction of the slurry wall and reclamation of the area disturbed by the slurry wall construction. 3. New disturbances anticipated to occur during upcoming year. Current projections are for the installation of inlet and outlet works for the lined storage reservoirs to occur in July and August of 2003. Once inlet and outlet facilities are built, Greeley will have the ability to operate the storage reservoir. It is cuttently unclear if Greeley will begin operating this site as a storage facility this year or attempt to contract with a gravel mining operator for immediate mining of the remaining sand and gravel on the site (the original mining on the site left between I S - 30 feet of material above bedrock). It is currently unclear as to the quality of the remaining material -test pits will be dug this year to determine this. It is also unclear as to the severity of the drought situation that currently affects Greeley's water situation. If the drought situation worsens in 2003, Greeley may opt to begin operation of the reservoir to help with the City's water situation with the intent of having additional mining occur in future years once the drought situation subsides. If the drought condition relaxes in 2003, Greeley may pursue additional mining on the site in order to immediately increase the total storage capacity. 4. Reclamation to be performed during upcoming year. The primary reclamation to occur in the upcoming year is installation of the inlet/outlet facilities associated with the projected end use as a water storage facility. 5. Dates for the beginning of active operations. The date for active mining operations to begin is dependent upon the severity of the drought situation in 2003, the quality of the remaining material at the site, and the proposed timeline for gravel mining companies to extract the remaining material from the site (if any are interested once the quality of the material is known). The date for active mining to occur could vary from 2003 to a number of years in the future depending upon [he variables listed above. 6. Date active operation ceased for the year, if any. Active operations have not ceased at the site.