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PERMIT#:M-1977-522 <br /> INSPECTOR'S INITIALS:ECS <br /> INSPECTION DATE:July 9,2014 <br /> OBSERVATIONS <br /> This inspection of the Star Water Resource site was conducted by Eric Scott of DRMS accompanied by Lynn <br /> Mayer SHults of LG Everist (LGE) and Steve O'Brian of Environment Inc. This site lies between the Cache <br /> LaPoudre River and "0"Street on the northwest side of the town of Greeley in Weld County, and is bordered <br /> on the east by a residential area. The permit was recently taken over by LGE from the previous operator(Star <br /> Ready Mix) in a Succession of Operator approved by DRMS on November 25, 2013. LGE does not plan to <br /> conduct additional mining at the site, but does intend to reclaim the permit area as a developed water <br /> resource (lined water storage). To that end, a permit amendment was submitted to DRMS on April 2, 2014 to <br /> modify the post mining land use, reclamation plan, and to address several compliance issues noted in the <br /> previous inspection on December 2013. <br /> This inspection was conducted as a "pre-op" inspection prior to the final approval of AM02. Much progress <br /> has been made since the last inspection toward the successful reclamation of the site. As can be seen in the <br /> attached photos,the western reservoir has been pumped out,the gas well has been abandoned and the <br /> peninsula removed, and the slurry wall is being installed. The pit floor is also being cleaned out to gain water <br /> storage, as well as material to complete the required 3:1 slopes and to backfill the eastern lake to the pre-81 <br /> surface area. This work, in conjunction with the updated bond calculation submitted in AM02, will bring the <br /> site backlinto compliance with DRMS and SEO regulations. DRMS will require that the new bond as proposed <br /> in AM02 and approved by DRMS ($1,066,000) be submitted and approved within 60 days of the AM02 <br /> approval date for the purposes of bringing the site fully into compliance. <br /> One issue noted during the inspection that will still need to be addressed soon is the presence of large areas of <br /> noxious as well as nuisance weeds on site. Large areas of noxious cheat grass and bindweed, as well as <br /> nuisance species such as kochia, and Russian thistle were present on site. This has been listed as a problem on <br /> the first page of this inspection report with a corrective action date of September 30, 2014. No other issues <br /> were identified during this inspection. DRMS would like to commend LGE and Environment Inc.for making <br /> significant progress in bringing this site into compliance and toward a successful final reclamation. <br /> Inspection,Contact Address <br /> Lynn Mayer Shults <br /> L.G.Everist,Incorporated <br /> 7321 E.88th Avenue,Suite 200 <br /> Henderson,CO 80640 <br /> Page 2 of 4 <br />