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WATEE CONSTRUCTION COMPANY <br />P.O. Box 1908 <br />STERLING, COLORADO 80751 <br />June 12, 2008 <br />Division of Minerals and Geology <br />Minerals Section <br />1313 Sherman Street Suite 215 <br />Denver, Colorado 80203-2273 <br />Re: Annual Report <br />MLR No. M-2007-013, Bollish Pit #2 <br />Anniversary Date: 6/13/08 <br />This pit HAS NOT been granted a Temporary Cessation, and it <br />HAS NOT operated more than 180 days this year. The Financial War- <br />ranty for this operation is $24,000.00, the permitted area in <br />Logan County, covers 40.23 ac. f and the pit is not phased. As <br />required in Rule 1.6 the MINE PERMIT SIGN is at the entrance to the <br />pit and the boundary has been outlined with posts to delineate <br />the Permit Boundary. <br />The annual report requirements in the MLRB Rules and Regula- <br />tions, and the annual review letter are addressed in the follow- <br />ing report. Please refer to the 2008 ANNUAL REPORT MAP submitted <br />with this report for areas discussed in this report. <br />(1) The partially mined area covers 4.93± acres at this time <br />(brown). An additional 3.79± acres is stripped above the <br />working face (yellow). The working face is left as a <br />highwall as allowed in the permit and no new disturbance has <br />occurred. We continued to remove stockpiled material from <br />the site. <br />(2) The slope along the south line is graded and shaped but no <br />other reclamation was required. Mining will continue on the <br />working face when the stockpiles are depleted. <br />(3) If mining and processing resume this year, we will continue <br />to mine in the area colored brown on the working face, in <br />the direction shown on the map. <br />(4) Reclamation will begin again as the mine limits are reached. <br />Existing topsoil stockpiles along the sides and on the <br />bottom of the pit have overgrown with weeds so we do not <br />have an erosion problem at this time. <br />(5) The current contact for this operation is: <br />Mr. Darren Gebhart Phone # (970) 521-0651 <br />McAtee Construction Company <br />P.O. Box 1908 <br />Sterling, CO 80751