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PERMIT#: M-1990-098 <br /> INSPECTOR'S INITIALS: PSH <br /> INSPECTION DATE: July 10,2014 <br /> OBSERVATIONS <br /> The Perry Pit was inspected by Peter Hays with the Division of Reclamation, Mining and Safety <br /> (Division/DRMS) as required by Rule 4.17.2 (2) by the submittal of a surety reduction request (SR-02) by the <br /> Operator. Mr. Chris Zadel with Northern Colorado Constructors, Inc. (NCCI) and Mr. J.C. York with AT <br /> Consulting, Inc. were present during the inspection. The site was previously inspected by the Division on April <br /> 14, 2014. <br /> On May 19, 2014, NCCI submitted a surety reduction request (SR-02) per Rule 4.14.1. On June 6, 2014, the <br /> request was deemed complete following the submittal of the required landowner contact information. The <br /> Division approved the surety reduction request on July 10, 2014 following this inspection. The required <br /> financial warranty for the site was reduced to$369,459.89. This was a reduction of$1,081,614.11 from the <br /> required surety amount and a reduction of$1,167,135.11 from the actual surety amount. <br /> The Perry Pit was active during the inspection. Overburden and topsoil excavation and salvaging was <br /> occurring in the northwest corner of the site. Mr. Zadel stated the processing plant would be moved to the <br /> area before the next mining extraction activity. The reservoir was being dewatered during the inspection and <br /> the water level was anticipated to be reduced by 15 feet in the next month or so. The reduced water level will <br /> allow the Operator to mine the current processing plant area and perform reclamation grading on the <br /> repaired slurry wall area slopes. <br /> The Platte River west bank stabilization project and slurry wall repairs approved in TR-03 were completed. <br /> The required SEO leak test for the slurry wall repairs was expect to be completed in November 2014. <br /> NCCI plans to submit another technical revision and financial warranty reduction request later this year <br /> following the slurry wall leak test. The warranty reduction request will be to remove the bond for the slurry <br /> wall repair work included in the SR-02 financial warranty estimate. The planned technical revision will change <br /> the approved Mine Plan to revise the perimeter mine slopes from vertical to the final reclamation slope of <br /> 3H:1V. This change in the Mine Plan will likely reduce the financial warranty amount required for the site. The <br /> Division will require the next financial warranty estimate to be updated for inflation. <br /> A mine sign indicating NCCI as the Operator of the Perry Pit was observed during the inspection. The problem <br /> cited during the last inspection has been resolved. Photographs taken during the inspection are attached. <br /> Inspection Contact Address <br /> Mr. Chris Zadel <br /> Northern Colorado Constructors <br /> 9075 Weld County Road 10 <br /> Fort Lupton, CO 80621 <br /> Enclosure—Inspection Map <br /> Cc: Tom Kaldenbach, DRMS <br /> J.C. York, J&T Consulting, Inc. <br /> Page 2 of 3 <br />