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GCC <br />Rice Grande <br />ANNUAL REPORT OF GCC RIO GRANDE TO DIVISION OF RECLAMATION <br />MINING AND SAFETY <br />August 28, 2009 <br />Pursuant to C.R.S. 34-32-116, as operator and permittee holder of a Colorado Mining and <br />Reclamation Permit, GCC Rio Grande, Inc. ("GCC") submits the following Annual Report to the <br />Colorado Division of Reclamation Mining and Safety for Permit M-2002-004. <br />A. BACKGROUND INFORMATION <br />GCC continues to maintain an active program of coordinating, pursuing and maintaining <br />compliance with all required local, state and federal permitting as well as optimizing its <br />operations at the facility and mine. In addition, GCC has worked on and continues to focus its <br />attention on remediation and stabilization efforts at its plant and quarry site. These activities <br />have involved the expenditure and commitment of substantial financial resources towards <br />completion of the project. <br />B. SPECIFIC FACILITY - RELATED ACTIVITIES <br />The following is a description of the quarry and operating activities that are underway. <br />1. Quarry Activities. Limestone mining has been conducted at the quarry for cement <br />production purposes. In accordance with the lease that GCC holds with the State of Colorado <br />Board of Land Commissioners, GCC has been paying monthly mineral production royalties <br />since November, 2007. As of July, 2009, the aerial size of the limestone quarry was <br />approximately 21 acres including the limestone pit, overburden stripping areas, and material <br />stockpiles. Due to the configuration of quarry equipment, a portion of this area will not be <br />reclaimed until final reclamation and closeout of the mine. However, GCC will appropriately <br />stabilize these areas against wind erosion and subsequent wind blown fugitive dust in <br />compliance with other environmental requirements. Approximately 11 acres of the quarry have <br />been reclaimed and/or temporarily stabilized. These areas include stockpiles of overburden <br />material, perimeter berms around the quarry area, and other miscellaneous areas. There are <br />another approximately 29 acres of disturbance in which reclamation is underway. Much of this <br />disturbance is associated with construction activities. Much of the ripping, grading, and <br />furrowing work in these areas has already been performed. GCC anticipates seeding these areas <br />by the end of 2009. There are another approximately 11 acres of construction related disturbance <br />that still remains. GCC anticipates that this area will undergo reclamation and stabilization by <br />the end of 2009. These various areas are indicated in the Exhibit A map attachment. The <br />Exhibit B map attachment depicts areas which GCC presently anticipates will undergo <br />reclamation during the coming year. The Exhibit C map attachment depicts those areas which <br />GCC presently anticipates will undergo new disturbances in the coming year. Please note that