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Division of Reclamation, Mining and Safety <br />Department of Natural Resources <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />303 - 866 -3567 <br />July 4, 2011 <br />RE: Annual report, Bachus Pit, M- 1995 -034. <br />Dear Sirs: <br />The attached map shows the condition of the pit. The past 12 months saw very little <br />material removed from the pit for local construction projects. I estimate that as little as <br />0.3 acres were disturbed and mined this year. <br />Last year we began reseeding an area for reclamation in the bottom on the pit. The area <br />was reseeded on June 28 2010, 4 days before the first rain of the season. Unfortunately, <br />the drought has limited any success with the reseeding and to date I cannot find any <br />evidence of grass emerging. Since this is another drought year, I will monitor the <br />conditions but do not anticipate trying additional seeding until the rains return. <br />During our last inspection, an area on the north side of the bottom of the pit was indicated <br />as an area of concern due to standing and exposed ground water. We had purchased water <br />from the San Luis Valley Water Conservancy District in order to provide water for a <br />construction project and it was pumped from this hole. We anticipate again wanting to <br />use water for similar purposes but have buried 75% of the exposed surface, although not <br />the complete site. We did not use all the water we purchased and are aware of the <br />requirements to acquire a water right prior to use of ground water. <br />I expect to mine less than one half acre this year. <br />erely, <br />Daniel M. Russell <br />Enc. — Map and Check <br />Daniel M. Russell <br />Bachus Pit, Inc. <br />9042 South 106 Road <br />Alamosa, Colorado 81101 <br />719 -589 -3302 <br />