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_ ' <br />MINERALS, LLC <br />1600 Stout St., Suite 1350 <br />Denver, CO 80202 <br />August 1, 2009 <br />DECEIVED <br />State of Colorado ? JUL 7 6 2009 <br />Department of Natural Resources Division of Reclamation, <br />Division of Reclamation, Mining and Safety Mining and Safety <br />1313 Sherman St., Room 215 <br />Denver, CO 80203 - - --- - - <br />Re: Tepee Park Ranch Shale Borrow Pit, Permit No. M-2008-027 <br />Black Diamond Minerals, LLC <br />Annual Report of Operations <br />Dear Sir/Madam: <br />The Tepee Park Ranch Shale Borrow Pit, Permit No. M-2008-027 ("Permit") was granted on <br />August 5, 2008 to Black Diamond Minerals, LLC ("BDM") to operate a Shale Borrow Pit <br />within the area known as Tepee Park Ranch ("TPR"). A report of operations is noted below <br />and a check for the annual fee is enclosed. <br />BDM complied with the Mining Plan outlined in the Permit. Extraction of shale rock at the <br />TPR Borrow Pit was also permitted through the Garfield County Building and Planning <br />Department through a Special Use Permit. BDM also complied with all the conditions of that <br />permit. <br />All construction work done at this site was conducted under a Stormwater Management <br />Permit issued by the CDPHE. Best Management Practices were implemented as defined in <br />our Stormwater Management Plan ("SWMP"). The required inspections were conducted and <br />documented by Buys & Associates of Littleton, CO. No incidents of noncompliance were- <br />identified. <br />2008 Activities: <br />Work began in the TPR Borrow Pit on August 2, 2008 in which a culvert was installed <br />and a retaining pond constructed at the site. These items were done per the design <br />submitted and in accordance with the SWMP. <br />• Work was completed for the year at the TPR Borrow Pit on November 3, 2008. <br />• An estimated 5400 cubic yards of shale was extracted from the borrow pit in 2008 and <br />used on selected sites within TPR, as noted below and shown on the attached map. <br />Division of Reclamation, Mining and Safety August 1, 2009 Page 1