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PERMIT #: M- 1993 -080 <br />INSPECTOR'S INITIALS: TC1 <br />INSPECTION DATE: February 12, 2014 <br />OBSERVATIONS <br />This inspection was conducted as part of the regular monitoring program. Messrs. Matt and Joe Welte were <br />present for the inspection, representing the Operator (The Summit Pressed Brick and Tile Company). This is a <br />112c clay mine. The mine was not operating at the time of the inspection. The Calhan Clay Pit entrance is <br />located approximately 3 miles southwest of Calhan off S. Fairplay Rd, —% mile south of Hwy 24. <br />Inspection: <br />Most of the site was covered with a few inches of snow. A permit sign was posted at the site entrance (see <br />Photo 1). T -posts indicate the four corners of the Phase I operation (see Photo 2), and a stormwater berm <br />separates the operation from the surrounding area on the south, east, and north sides (see Photo 3). <br />Overburden and topsoil stockpiles are in the 50 -foot offset between the pit edge and Fairplay Rd. (see Photos <br />4 and 5). <br />The haul road is short (— 200 feet) and provides access to stockpiles of different types of clay (sorted by color). <br />There were three clay stockpiles during the inspection, two on the east side and one on the south. The site <br />was not active at the time of the inspection, but a wheeled loader was parked at the south end of the north <br />stockpile, which showed signs of recently being excavated for truck loading (see Photo 6). <br />The highwalls were observed to be significantly steeper than 3H:1V and erosion gullies were evident along the <br />pit wall (see Photos 7 and 8). The highwall height appeared to vary between zero and as much as 12 feet near <br />the middle (north to south). All sedimentation was confined to the pit area. <br />Records: <br />• The total permitted area is 320 acres, with a maximum affected area of 61.5 acres (Phase 1: 9.98 ac; <br />Phase Ik 28.41 ac; Phase III: 23.09 ac). Phase I is limited to the east side of Fairplay Rd. Phases II and III <br />are planned for the west side of the road. <br />• The previous inspection was performed on 4/23/2009. No problems were cited. <br />• The anniversary date is April 26. Annual reports and fees are current through 2014. Both the 2013 and <br />2014 annual reports indicated 9.8 acres had been affected. <br />• The post -mine land use is rangeland. <br />Current Stipulations: None. <br />Bond: <br />The current required bond is $19,200. The Division holds only $19,183. This bond is for 10 acres of total <br />disturbance and has not been adjusted since the permit was approved in 1994. Significant increases in unit <br />costs since 1994 ensure the current bond is inadequate for the 9.8 acres of affected area. A revised bond <br />estimate calculation is enclosed. The revised estimate includes updated unit costs, some reductions in dozer <br />push distances (to reflect the actual mining practice on site), and a reduced travel distance for mobilization <br />from Colorado Springs (from 40 miles to 33 miles). The revised bond estimate is $39,800. Please review the <br />revised bond estimate. The Division will notify you of the official bond increase under separate cover. <br />Summary and Recommendations: <br />1. The financial warranty has not been updated in 21 years. A revised bond estimate is attached. The <br />Operator should review it carefully and contact the Division within 7 days if there are any questions or <br />problems. <br />2. The Division will issue a surety increase under separate cover after the seven -day period. <br />Page 2 of 7 <br />