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PERMIT #: M- 2010 -036 <br />INSPECTOR'S INITIALS: ERR <br />INSPECTION DATE: November 3, 2014 <br />OBSERVATIONS <br />The Division of Reclamation, Mining and Safety (Division) conducted an inspection of the Ensminger Pit #2, Permit File <br />No. M- 2010 -036 (formally known as the Hansel Pit #1). The mine is located approximately 7 miles south - southwest of <br />Haxtun, Colorado. Elliott Russell, with the Division, inspected the site while Rick Ensminger accompanied it. The site has <br />a Construction Material Regular 112c Reclamation Permit with 52.9 permitted acres and an approved post - mining land <br />use of Wildlife Habitat. This inspection was carried out to verify the current disturbance and observe site conditions <br />following the September 19, 2014 submittal of the Application Form for Transfer of Mineral Permit and Succession of <br />Operators (SO) by Mr. Ensminger. The permit consists of 6 phases along the ephemeral drainage known as Sandy Creek. <br />Currently, the maximum allowed disturbance allowed under the Financial Warranty is 19.4 acres, which is Phases 1 and 2 <br />(the two farthest east phases). <br />At 13:30, the Division met Mr. Ensminger at the mine site, located in the southwest corner of the CR 3 and CR 16 <br />intersection. At the time of the inspection the temperature was cold, the sky was overcast, and the ground was damp. The <br />mine site identification sign was observed at the entrance to the site. The Division located only three metal fence posts <br />delineating the northeast, southeast and south - central corners of Phases 1 and 2. This will be cited as a problem requiring <br />corrective action. Please note that Phases 1 and 2 are the only portions of the permit required to be delineated (the Mining <br />Plan Map has been attached for the Operator's reference). The site was not currently being mined at the time of the <br />inspection, but there was one bulldozer and one front -end loader on the site, of which are both the previous Operator's. <br />The site currently consists of three separate digging areas. The most recently mined area was farthest to the west. This <br />western pit had topsoil stripped and piled between the 6 foot excavation and the creek channel. The two other digging <br />areas were located to the east of this pit. One was located just south of the site entrance and was roughly the same depth as <br />the first. This "central pit" is also located just south of the slight curve in CR 16. The third digging area was located near <br />the northeast corner of the site. This eastern pit was of similar depth, but was the smallest of the three pits. <br />The reclamation cost estimate was calculated in November 2014 as a part of the SO process and is still adequate. The SO <br />was approved January 21, 2014. To comply with Rule 3.1.12(1), the permit identification sign will need to be updated to <br />show the name of the new Operator. <br />Page 2 of 6 <br />