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Additional Pages <br />2008 Annual Report <br />Fountain Pit <br />M-1982-155 <br />Schmidt Construction Company <br />Anniversary Date: December 31 <br />Overview of Permit Year: During the 2008 operating year there was only moderate to low activity at this site. <br />The mining expanded very slightly into previously stripped land. It is not expected, but possible, that a little <br />more land will be stripped during the next year. It all depends on the state of the economy. <br />Annual Report Maps: The annual report map is identical to the 2007 map, because any changes were so <br />minor mapping them would change the features an insignificant amount. <br />Affected Lands: The amount of affected land is the same as last year. The main cause of this lack of change is <br />due to the low demand for product. Near the end of the year, new mining ceased and only product from <br />stockpiles was being sold on a very limited basis. This is mainly due to the severe downturn in the economy. <br />Revegetation: The site is stable and is not subject to erosion. No additional revegetation was done in the last <br />year. A slight amount of additional backfilling occurred in mined out areas. As essentially no new land was <br />opened there was very little overburden available to do more backfilling. <br />Expected Activity (2009): Mining activity in 2009 is essentially unpredictable at this point. At this time there <br />appears to be a very limited need for material in 2009, however if there is a large influx of economic stimulus <br />money from Washington, D.C. for infrastructure, as the new Obama administration is considering, activity may <br />increase as a result of road and bridge construction and repair. At this time it is not known whether this will <br />occur, so the only truthful expectation is that demand for decomposed granite will be low. Only time will tell. <br />Bonding: This operation is covered by a self bond. <br />Schmidt Construction Company 2008 Annual Report M-1982-155 Fountain Pit Page 1 of 1