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PERMIT #: M- 1989 -024 <br />INSPECTOR'S INITIALS: TOD <br />INSPECTION DATE: September 2, 2014 <br />OBSERVATIONS <br />This inspection was conducted in response to a request for a full performance and financial warranty release <br />that the Division of Reclamation, Mining and Safety (DRMS) received on August 4, 2014. This inspection was <br />conducted by Tyler O'Donnell of DMRS. Edward M. Yaklich, the Operator, was represented by Joanie <br />Yaklich and John Houston. <br />The Shangri La Pit is located approximately 2 miles southwest of Westcliffe, Colorado. The Shangri La Pit was <br />permitted as a sand and gravel pit. The permit area was 9.90 acres, with 0 acres disturbed at the time of the <br />inspection. <br />DRMS sent out notices regarding the release request to the owners of record of the affected land, the Custer <br />County Commissioners and to the Custer County Conservation District on August 8, 2014 as required by <br />Construction Materials Rule 4.17.2. DRMS received an objection from Custer County Conservation District on <br />August 21, 2014. The objection was timely -filed. <br />The sky was clear. The ground was dry. No mining equipment was operating or present at the time of the <br />inspection. The Operator's representatives indicated that the mining project never commenced. No mining <br />disturbance was observed during the inspection. Based on the conditions observed at the site during the <br />inspection, it appears no mining ever took place at the site. <br />During this inspection DRMS has found the Operator has successfully complied with all requirements of Title <br />34, Article 32.5 of the Colorado Revised Statutes. Accordingly, DRMS approved the release on August 26, <br />2014. As stated in our release request notice of August 8, 2014, we will wait 30 days until after the release <br />decision before finalizing the release in order to allow for appeals. <br />Inspection Contact Address <br />Edward M. Yaklich <br />112 Cottage Ln <br />Canon City, CO 81212 <br />CC: Tom Kaldenbach, DRMS <br />Page 2 of 3 <br />