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Additional Sheets <br />2009 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 2008/2009 operating year all of the mining activity occurred in the <br />Upland Mining area and showed a huge reduction in comparison to the previous year. The reduction was a <br />result of the weakening economy and the lack of demand for sand. <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 />The special use report was approved by Arapahoe County and preparations are being made to move <br />into the amendment area. At this time, no land has been disturbed in the amendment area. <br />The amount of land involved in actual extraction has been reduced to primarily the processing plant. <br />Two small pits in the 2008 additional bonded area have been operated as well as a few scattered other pits in <br />previously disturbed land west of the main road. It is unlikely additional areas will be opened in the original <br />permit area. Thus the remaining 50.39 acres of bonded but undisturbed land will probably be requested for <br />release in 2009. <br />Reclamation: A great deal more land has been placed in reclamation in the last year with a total now of about <br />132 acres in some state of reclamation. Much of that has been planted or will be planted in 2009. <br />Continued monitoring of the exclosures shows major gains in the growth of the protected woody <br />vegetation. Significant gains have been made in the regrowth of cottonwood and willow in the exclosure areas. <br />Outside the exclosures and all along the stream, new cottonwood is gaining in height and cover at a rapid rate. <br />In the last year, there appears to be some additional declines in the oldest cottonwood stands. This is expected <br />as those cottonwoods so old they are expected to die, but with the rapid regrowth along the stream corridor, <br />now that cattle have been removed, will replace the older stands with new stands of cottonwood. <br />A few very tenacious Tamarix remain in the South Lowland and even after multiple treatments these <br />individuals have a remarkable ability to recover. One more treatment will be applied. If they recover again, they <br />will be physically removed. <br />Work Anticipated in 2008/2009: With the demand for sand at an all time low, the future mining is quite <br />unpredictable. For now, the few small excavations are supplying the needs, but if the market improves, the <br />mining will move into the amendment area. It is not expected any further areas will be opened in the original <br />permit area. Once mining moves to the amendment area all disturbances other than access routes and the <br />processing plant will be reclaimed. There are only a few acres of current mining area that has not already been <br />placed into some stage of reclamation. The rest will be used in association with the amendment area. <br />Bonding: This operation is covered under a self bonding arrangement. <br />Schmidt Construction 2009 Annual Report M-1988-044 Coal Creek Resources Page 1 of 1