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Meurer & Associates <br />A Division of Kennedy/Jenks Consultants <br />December 10, 2007 <br />Ms. Mary Rodriguez <br />Colorado Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />RE: Annual Report <br />DMG Permit Amendment No. M-1982-015, AM-1 <br />Job No. 3811-DMG <br />Dear Ms. Rodriguez, <br />143 Union Boulevard, Suite 600 <br />Lakewood, Colorado 80228 <br />303-985-3636 <br />FAX 303-985-3800 <br />TOLL FREE 1-866-535-5285 <br />www. KennedyJenks.com <br />Meurer & Associates, A Division of Kennedy/Jenks Consultants, is submitting this <br />Annual Report letter for permit number M-1982-015 to the Colorado Division of <br />Reclamation, Mining and Safety (Division) on behalf of Carma Bayshore, LLC. This <br />permit was originally listed under Siegrist Construction Company. A permit <br />amendment was approved by the Division as Amendment 01 on September 25, 2006, <br />and a Succession of Operators Approval was granted by the Division on October 25, <br />2006. The new operator is now Carma Bayshore, LLC. <br />The anniversary of the original permit is December 10. We understand that an Annual <br />Report is due each year at that time. The report should address any activities that <br />have occurred within the permit area. <br />Since December 10, 2006, all reclamation activities have occurred for this site, <br />including the construction and testing of the slurry wall, which was approved by the <br />State on September 7, 2007. The site's reclamation is in general compliance with the <br />approved plans by the Division. Carma Bayshore, LLC has requested partial release of <br />the financial warranty and Brad Davis of Carma met on-site with Erica Crosby of the <br />Division on November 2, 2007 to perform a final inspection of the reclamation. <br />Q:\Meurer\Project 3000's Documents\3811\3811-DMG Permit\3811 DMG Annual Report Letter 2007.doc <br />