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<br />PK ENTERPRISES, INC. <br />P.O. Box 729 • 11115 W. Hwy. 24 • Divide, CO 80814 • 719-687-6011 • Fax 719-687-6788 <br />October 10, 2008 <br />State of Colorado <br />Division Minerals & Geology <br />1313 Shennan St. # 215 <br />Denver CO 80203 <br />RE: Pen-nit # M-2000-077 <br />To Whom It May Concern: <br />In reference to the 2008 annual report there were approximately 75,632 tons of gravel <br />extracted from Mule Creek Gravel Pit as of October 10, 2008. Enclosed is our annual fee of <br />$791.00 on check number #16611. This years' mining activity was concentrated on the upper <br />113 portion of the slope. This year we went over the crest of the ridge and established a slope <br />100 feet away from the east boundary. Next year we will make a cut for the slope approximately <br />75 feet to the east. Benching the different levels will be done to comply with MSHA regulations <br />and to facilitate and ease the removal of gravel from the steep slopes. In several areas of the pit <br />the gravel.and rock is too hard to rip. In reference to last years amlual report there was no <br />blasting done at Mule creek this year and only limited blasting will be done as needed. <br />Blasting will be done in accordance with all applicable rules and regulations including <br />County and State as outlined in County and State permits. <br />If you have any questions please contact me at (719) 686-1566 or (719) 339-9125. <br />Zcerely, <br />A <br />go X Loop <br />GAL/dkf <br />gravel\annulpenn.04