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ANNUAL STATUS REPORT <br />TO COLORADO STATE BORAD OF LAND COMMISSIONERS <br />SAND GRAVEL LEASE: GL -264 (FOURTH AMENDMENT) <br />LOWRY RANGE <br />COAL CREEK (QUINCY AVE. SOUTH TO COUNTY LINE) <br />SCHMIDT CONSTRUCTION COMPANY <br />Status report for 2012 <br />APPLICABLE YEAR: 2012 <br />DUE DATE: JULY 15, 2012 <br />In accordance with the requirements of Paragraph 6 of the lease and Item I.A.5 of the <br />Operation Plan, the following information is provided as a status report for the year preceding the due <br />date stated above. This information updates the previous annual status report information. Any <br />updated maps presented in this report contain not only the information for the current year, but <br />information for prior years as well. If no new map is provided then there was no change in the <br />information provided on the previously submitted map. Thus, as conditions change, the maps are kept <br />up to date on an annual basis without a need to refer back to previous maps. Any maps that were not <br />updated are so indicated in this report so the most current map can be located for reference as needed. <br />DATE OF FINAL INSPECTION FOR PREPARATION OF THIS REPORT: July 3, 2012. <br />SUMMARY OF THE CURRENT STATUS REPORT YEAR: The 2011 -2012 operation year <br />(July 15, 2011 - July 15, 2012) was another slow year for the operation. With the economy still in the <br />dumps, demand for sand was even less than last year which was a 30% decline from the previous <br />year. Production was slightly less this year than last year. <br />Reclamation of older disturbances were approved for release under a bond reduction request. <br />This leaves a comparatively small area needing full reclamation. No seeding was done this year. <br />STATUS REPORT FOR CURRENT YEAR <br />MAPS: Following is a list of the maps that have been updated. The maps provided with this report <br />are intended to replace the previous map. Original maps that are not updated therefore become the <br />current year map. These maps are reduced to 18 "x24" from the previous 36 "x48" for greater ease of <br />use. <br />IIW Operation Status Map -1 Northern Portion of Lease: Shows last year's disturbance <br />areas, new disturbance areas, and status of all disturbed areas. <br />Operation Status Map -2 Southern Portion of Lease: Shows last year's disturbance <br />areas and status of all disturbed areas. This map is included this year to show the land <br />that was released (removed) from the permit due to oil and gas activities as well as the <br />status of land previously affected. <br />due July 15, 2012 Page 1 of 8 <br />