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2012 Annual Report <br />Front Range Aggregates, LLC <br />Parkdale Project <br />Permit # M- 1997 -054 <br />Mining Activity <br />As anticipated in the 2011 annual report for the Parkdale Project, mining on the western boundary of the <br />alluvial deposit progressed in 2012 to lower levels allowed by the 2008 amendment. In addition, the southern <br />boundary of the alluvial deposit was mined although not yet to the full allowable depth. <br />2013 mining activity will continue from west to east in the alluvial deposit. The intention is to mine to bedrock <br />on the western perimeter and proceed to the east allowing control of ground water that infiltrates from the west. <br />Preliminary reclamation will begin on the western slopes once aggregate has been removed to bedrock. <br />Market demand for aggregate is still well off of mid -2000 levels and well below the permitted levels for this <br />location. However, some improvement in mined volumes occurred in 2012 but the market remains very soft <br />and unpredictable. Therefore mining is anticipated to proceed as indicated in 2013. <br />Ground Water <br />Since the mine produces washed products, some ground water is exposed on the mine floor in the fresh water <br />and settling ponds. A Substitute Water Supply Plan is in place to account for the ground water consumption <br />and Toss. Due to reduced ground water levels, no water was discharged from the pit area in 2012. Even <br />though mining is proceeding below the historical water levels, no discharge was necessary in 2012. <br />Overburden and Top Soil Stockpiles <br />The top soil and overburden stockpiles from 2011 are sloped and vegetation is becoming more prevalent in <br />spite of a distinct lack of moisture throughout 2012. Some additional material has been added to some of these <br />piles. Sloping and stabilization of this additional material will be accomplished over the winter and into spring of <br />2013. <br />Reclamation <br />Now that mining to bedrock has begun, it is anticipated that some sloping of the western perimeter will take <br />place in 2013. Because this site is permitted as a water storage vessel, final reclamation of the slopes will <br />occur when the impervious slope liner is installed. In the interim, side slopes will be maintained at <br />approximately 3:1 to minimize erosion and prepare for the installation of the impervious portion of the liner. <br />Weed Control <br />Some weed control has been necessary to maintain compliance with the weed control plan. The most <br />prevalent weed species that must be treated are leafy spurge and salt cedar (Tamarix). The herbicide is <br />applied with a sprayer by a licensed weed control firm, Fremont County Weed Control. <br />