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MCATEE CONSTRUCTION COMPANY <br />dba McAtee Paving Company • Sterling Redi Mix Company • Green Bros. Ready Mix <br />P.O. Box 1908 • Sterling, Colorado 80751 <br />Phone: 970-522-3647 • Fax: 970-522-9725 <br />February 8, 2011 <br />Mr. Tony Waldron <br />Division of Minerals and Geology <br />1313 Sherman Street Suite 215 <br />Denver, Colorado 80203-2273 <br />-Dear Mr. Waldron: <br />Re: Annual Report, McAtee Construction Company, <br />Riverside Pit, M.L.R.B. No. M-1976-056, Logan County <br />Anniversary date: February 22, 2011 <br />The current bond amount is $131,200, the permitted area is 86.38 acres t and the pit is <br />not Phased. This pit HAS NOT been granted a Temporary Cessation and it HAS operated more <br />than 180 days this year. The mine perimeter is marked with fences or corner posts as required <br />and a sign exists at the mine entrance. Please refer to the ANNUAL REPORT MAP for the location <br />of the areas discussed in this report. <br />We will deal specifically with each of the Annual Report questions as required in Rule <br />1.15 of the Rules and Regulations and the Annual Notice Letter. <br />(1) No new area was stripped this year and we complete mining on the 1.04 acres partially <br />mined last year in the West Lake area. We are still removing processed material located <br />within the Plant Site area and on the south end of the Lake Marjorie area. The following <br />table shows the status of the permit area disturbed in each lake area: -- - <br />DISTURBANCE LAKE <br />MARJORIE LAKE <br />ROBERT WEST <br />LAKE TOTALS <br />Lake (blue) 7.48 10.35 4.12 21.95 <br />Below Water sloping complete 6.46 6.70 0.00 13.16 <br />Temporary sand pile (purple) 1.50 1.50 0.00 3.00 <br />Backfilled area 0.13 0.92 0.00 1.05 <br />Shaped and graded Complete <br />(green) 1.54 6.00 0.00 7.54 <br />Plant site brown 8.80 1.32 10.12