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Additional Sheets <br />2008 Annual Report <br />Coal Creek Resources <br />M-1988-044 <br />Schmidt Construction Company <br />Anniversary Date: March 28 <br />Overview of Permit Year: During the 2007/2008 operating year all of the mining activity occurred in the <br />Upland Mining area and showed a major reduction in comparison to the previous year. The reduction is a result <br />of a lack of sand to mine within the original permit area and a major increase in the amount of land being <br />reclaimed. <br />Annual Report Maps: There are two annual report maps provided this year, one for the Lowland Mining area <br />and one for the upland area where most of the mining is occurring. This map is prepared using the same base <br />map as the previous annual reports. <br />Affected Lands: The maps contain the necessary information regarding the amount of affected land and land <br />not yet released and the current bonded boundaries. <br />A lease extension was previously approved, as well a permit amendment, but no disturbance has <br />occurred outside the original defined permit and affected land area. Currently, the Arapahoe County Special Use <br />Permit is being considered. Once all approvals are in place, work will expand to the new land and it is highly <br />likely that all mining disturbances (except the plant area) within the current permit area will be reclaimed with <br />no additional mining to occur in the original permit area. <br />A 62 acre increase in land being reclaimed pushed to total amount of land in some stage of reclamation <br />to about 117 acres. Operation areas, including the plant, declined to about 54 acres. Only about 38 acres of <br />bonded, but undisturbed land remains and it is unlikely much disturbance will occur there as it does not appear <br />there is any worthwhile sand in those areas. <br />Revegetation: No additional revegetation work was done in the last year. Revegetation on the South Lowland <br />areas has continued to progress. However, the large amount of land currently being graded is expected to be <br />seeded this year. <br />Continued monitoring of the exclosures shows major gains in the growth of the protected woody <br />vegetation. In mid-summer the cattle were removed from the land and lands outside the exclosures exhibited <br />major gains in the growth of grasses, forbs, and woody vegetation. So long as any future grazing of the land is <br />well managed, it is likely that the riparian forest will recover from the effects of grazing. It has become apparent <br />that mining actually increased the amount of habitat for woody vegetation, but the grazing impact was so great <br />it prevented a recovery of the riparian vegetation. <br />The small population of Tamarix has been reduced to about 80% to 90% of its initial population. <br />Further reductions will occur in 2008, but eradication may take a bit longer. Now that cattle are no longer <br />spreading weed seed all over the property, especially in the rich riparian habitat, control of other weeds can be <br />done with greater success. <br />Work Anticipated in 2008/2009: Upon approval of the special use permit, all current operations, except for <br />the processing plant, will be concluded and mining will proceed in the new lease area. Otherwise, sand will <br />continue to be extracted in the older permit areas and within the bonded boundary. Reclamation will occur on <br />all lands, except the plant site, within the original permit area. <br />Bonding: This operation is covered under a self bonding arrangement. <br />Schmidt Construction 2008 Annual Report M-1988-044 Coal Creek Resources Page 1 of 1 <br />