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Additional Sheet <br />2010 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 2009/2010 operating year all of the mining activity occurred in the <br />Upland Mining area and showed some increase. The increase was due to opening land in the new amendment <br />area. It was not due to increased production as demand for sand remained extremely low. <br />Annual Report Maps: There is one annual report map which shows the upland mining areas. Nothing changed <br />in the lowland area and therefore no map of that is provided. This map was produced using the new <br />amendment maps. Therefore, because of some small scale differences between the previous and the new maps <br />acreages differ slightly. These are noted on the map. <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 />Approximately, 12.7 acres was opened in the new amendment area. About 4 acres continue to be mined <br />in the old permit area primarily for construction fill. Although the construction fill could have been generated <br />by opening additional undisturbed land, it was reasoned that rather than disturbing more land the construction <br />fill should be generated from already disturbed land. This product is of low grade and can be provided without <br />additional disturbance to the amendment land. <br />Reclamation: Land in some-state of=reclamation is-essentially the-same-as-was reported=last-year. More land_ls-_ <br />being prepared for seeding and is shown as "Final Grading" on the map. <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. Vegetation <br />sampling will continue in Exclosures 1 and 2, but is no longer needed in Exclosures 3, 4, and 5. The Army <br />Corps of Engineers desires photographic monitoring continue there along with photographic and sampling in <br />Exclosures 1 and 2. <br />Work Anticipated in 2010/2011: 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 may move further into the amendment area. No new land will be opened in the original permit area, but <br />construction fill extraction may continue in a few places. It is considered good environmental management to <br />limit the disturbances created in the amendment area so long as particular, low grade products can be produced <br />from existing disturbances in the old permit area. The new amendment area is being used to produce the higher <br />quality sand products that can no longer be found in the older permit area. In short, this approach is based on a <br />philosophy of not disturbing more land than is necessary so as to limit the amount of mining and reclamation <br />needed on this Stewardship Trust Land. <br />Schmidt Construction 2010 Annual Report M-1988-044 Coal Creek Resources Page 1 of 1