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PERMIT #: M- 2008 -078 <br />INSPECTOR'S INITIALS: TOD <br />INSPECTION DATE: July 29, 2013 <br />OBSERVATIONS <br />This was a normal routine monitoring inspection, conducted by Tyler O'Donnell of the Division of Reclamation, <br />Mining and Safety (Division). Bill Grasmick, the mine operator's representative, was present during the <br />inspection. The West Farm Pit is located approximately 0.5 miles east of Lamar Colorado. The West Farm Pit <br />is permitted as a sand and gravel pit. The approved permit area is 233 acres, with a maximum allowed <br />disturbance of 23.63 acres. The approved post- mining land use is Developed Water Resource. <br />Mining operations at the site have not yet started. However the operator has begun activities to support <br />mining in the future. The operator is currently installing slurry all around phases 9, 10, 13 and 14. The <br />operator is installing a slurry wall using a long boom trencher (Photol). The installation of a slurry wall is not <br />part of the current approved mining plan. The approved mining plan allows for the operator to backfill the pit <br />walls with clay, creating a low permeability boundary. On July 26, 2013 the operator submitted a technical <br />revision (TR -02) to update the mining and reclamation plan to account for the change from a clay liner to a <br />slurry wall and the change in the mine phasing. The operator will need to get approval of the technical <br />revision (TR -02) and the Division's acceptance of the results of the State Engineers leak test before the <br />commencement of mining that expose groundwater. <br />Page 2 of 5 <br />