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FLAG SAND AND GRAVEL CO. PAGE 2 <br />201 0 - ANNUAL REPORT <br />NOVEMBER 29, 201 O <br />2.1 & 9 Antero Resources Piceance Corp. began construction on the oil <br />facility drilling pad in 2010 and was completed in July 2010. <br />This pad will eventually be the location of 12 well and their <br />support facilities. At this time 4 wells have been completed. <br />The slope from the pad into the bottom of the mine is approxi- <br />mately 3:1 and the south slope from the original ground <br />surface to the pad is approximately 3:1. The completed slopes <br />were reclaimed in late July 2010 (green). The Antero Oil <br />seeded and placed jute mats over the seeded area. If needed <br />remedial seeding will be done again this year. The mix used <br />was the same approved in the permit and amounted to the <br />following species. <br />Seed mix lbs-pls/ac. <br />Indian Ricegrass 1.25 <br />Crested Wheatgrass 7.00 <br />Yellow Sweetclover 1.40 <br />Total 9.65 <br />11 (cont) We will begin stripping overburden from the southern area <br />(orange) this year and placing it on the processing and <br />stockpile area next to the oil facility (yellow). This filled <br />area will become the processing and stockpile area as the <br />remaining gravel is removed. <br />The berm material placed along County Road 335 remains <br />unchanged (blue). Once complete this berm will be revegetated <br />and will remain when mining ends. The sloping completed to <br />date covers 2.72 acres on the east side of the mine. The <br />triangular area east of the farm road has been resoiled. The <br />processing area covers 1.62 acres ±. <br />BOND REVIEW: <br />The bond is currently set at $17,300 for disturbance on the entire <br />area. This mine was last inspected on 5/4/2010 and the bond was <br />determined to be adequate by the Division. <br />WEED CONTROL <br />Weed control was completed by March 19, 2010 this year in accordance <br />with the Garfield Weed Management Plan on the mine and spot work was <br />done on the Plant Site areas and roadways. Escort and 2-4-D was <br />applied to the Hoary Crest, and Kochia, and Telar and Milestone was <br />used on the Russian Knapweed. Ranger pro was use on grass areas to <br />control the weeds in those areas. No work was done this fall as we <br />continued to monitor the success of the spring spraying. Weed <br />control will resume in 2011. <br />2