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Additional Page <br />2010 Annual Report <br />Menzer Quarry <br />M-1976-009-HR <br />Schmidt Construction Company <br />Anniversary Date: December 31 <br />Overview of Permit Year: During the 2010 operating year there was a moderate amount of activity at this site. <br />Production remained down somewhat due to the low demand for aggregate. Mining occurred in the same areas <br />as was the case in 2008 and 2009. <br />Annual Report Maps: Like the 2008 and 2009 annual report map, this map is prepared using the new <br />topographic map prepared in 2004. Boundaries and zones of activity are the same as was the case in 2009. <br />Affected Lands: The amount of affected land has not increased from last year. Mining continued in the <br />previously disturbed land in the southwestern corner and in the northeast corner. A photo page is included this <br />year showing the dramatic changes that have occurred in the northeast corner since 2005. The very high and <br />sharp peak that was so problematic in 2005 and 2006 has been almost completely removed. From one to three <br />more lifts will be taken, depending on the location, in this area after which mining should be done here. That <br />will open a great deal of land to the north of the processing plant. That expansion of the plant (actually the <br />stockpile area) will considerably simplify the haul out and stockpiling processes providing for smoother traffic <br />flow and less movement of material up and down hills. This is a major step in the mining plan that provides for <br />a much larger processing plant and stockpile area. For many years now those facilities have been somewhat <br />cramped and at two separate elevations. There will still be two elevations to provide for dumping of mined rock <br />into the plant for processing, but the stockpiling can be placed at the same elevation as the processing plant <br />which improves efficiency and reduces costs considerably. <br />Revegetation: The site is stable and is not subject to erosion. No revegetation was done in 2009 as no land <br />was available to revegetate. <br />Expected Activity (2011): Mining will continue in areas that have already been opened for mining. Any <br />further expansion of the affected land will most likely occur in the middle sub-ridge of the western portions of <br />Phase 1 as that area is opened and a face created at the back of the quarry. Benching will be done such that <br />drainage will be routed across specially configured, very slightly sloping benches that will drain to the large <br />drainage separating Phase 1 and Phase 2. This was expected to be done in 2010, but did not occur due to a <br />reduced demand for rock. <br />Work will continue in the northeast corner to lower that area to the elevation of the plant and produce <br />the final benches. It is possible some reclamation will occur here in 2011, but it will more likely occur in 2012. <br />A new access route to the west end may be constructed in the coming years that extends west along the <br />drainage between Phase 1 and Phase 2. <br />How far any of this goes in the next year will be completely dependent on the state of the economy. Up <br />to this point, Menzer has only been moderately affected by the slowing economy. <br />Schmidt Construction Company 2010 Annual Report M-76-009-HR Menzer Quarry Page 1 of 1