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Varna Companies, Inc. <br />Office of Special Projects <br />1431 Fast 16th Street Greeley. Colorado 80631 Telephone (970) 353-8310 Fax(970)353-4047 <br />AUGUST 2009 ANNUAL REPORT - M99-006- Kurtz Resource Recovery & Land <br />Development Project <br />Status of operations has changed and an updated map is included with this submittal. In <br />2008-9, Extraction continued in Tracts D and E, and as indicated in last years annual <br />report, involves the entire Tract area. Extraction commenced in the SouthEast quarter of <br />Tract C and continues in a NorthWesterly direction, facilitated by a short conveyor run to <br />the wet plant in Tract B. Extraction in Tracts D, E, and C will continue through 2009-10. <br />Extraction in the Southern half of Tract E is essentially exhausted and continues in the <br />Northern half. As reported previously, a small dry plant has been set up within the upper <br />bench of the central area of Tract D with extraction continuing along the center of the <br />tract. The western portion recycles plant water, as reflected in previous annual report <br />maps and iterated in the updated map included with this submittal. The remaining wash <br />fines act as fill to expand developable land over the extracted basin perimeter. <br />Stockpile activities occupy the remainder of Tract F and the balance of lands in Tract B. <br />Tract A is idle and filled with wash fines. There is no planned reclamation beyond <br />concurrent slopping and re-soiling reported and shown in previous annual reports and <br />continuing as possible along completed portions of Tract D, primarily along the Southern <br />boundary. Finished slopes are being stabilized temporarily with oats until final seeding <br />efforts commence once continuity along slope aspects is established. Weed management <br />will proceed according to the June 2005 Technical Revision. <br />Also shown is an active Army Corps of Engineers constructed seep segment. The permit <br />will allow Waters of the United States to be connected to two existing seeps, while <br />allowing the seep presently dividing Tract D from E and Tract C from F to be extracted. <br />This will facilitate the return to concurrent grading activity of finished slopes. <br />Forthcoming are revisions to allow the introduction of conveyed materials from a new <br />extraction permit area, and the opening of a new Tract G, within Kurtz, for continued <br />extraction. Also shown are delineated wetlands from work perfomed in 1999 to the <br />present respective of wetland avoidance and permitting. <br />Oil and gas lines have been relocated. The line shown in green on the included map has <br />been relocated between Tracts B and C, and the present location will be updated in a later <br />revision to the permit. The red oil and gas line is the approximate location of previously <br />existing lines relocated to the approximate location of the blue line running along the <br />western perimeter of the permit boundary. <br />Since the site has recently been inspected by the Office of Mined Land Reclamation, <br />areas of disturbance and conditions respective of financial warranty determination will be <br />updated during the financial warranty review. This updated information will be reflected <br />on future annual report maps and text.