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PERMIT #: M-2008-001 <br />INSPECTOR'S INITIALS: TOD <br />INSPECTION DATE: April 24, 2015 <br />OBSERVATIONS <br />This inspection was conducted in response to a request for a surety reduction (SR -02) that the Division of <br />Reclamation, Mining and Safety (Division) received on March 20, 2015. The inspection was conducted by Tyler <br />O'Donnell of the Division. Southwest Farms, Inc., the Operator, was represented by John Sliman during the <br />inspection. <br />The Blue Grass Gravel Pit is located in Pueblo County approximately 10 miles east of Pueblo Colorado. The <br />Blue Grass Gravel Pit is a 323 -acre 112c Construction Materials Reclamation Permit, with a maximum allowed <br />disturbed area of 21.4 acres. The permit was issued in November of 2008. The permit was placed in Temporary <br />Cessation (TC) in 2013. The first five-year period of TC will expire on November 21, 2018. The approved post - <br />mining land use is developed water resource, the Operator plans on lining the future excavation to create a water <br />storage reservoir. The mine site was surrounded by the following land uses: residential, agricultural, rangeland, <br />and mining. <br />During the inspection, the sky was clear and the ground was dry. This inspection consisted of a visual examination <br />of the entire affected area. The site was not operational during the inspection, there was no mining equipment <br />on-site during the inspection. No mining has taken place within the affected lands. All activities conducted on <br />the affected lands consisted of site preparation for the anticipated mining. At the present time it appears that the <br />mining operation has affected approximately 18 acres. The affected area was located in the southern portion of <br />the permitted site. The affected lands consisted of an area where the Operator has stripped topsoil. Within the <br />past few years the Operator has replaced the topsoil and seeded the affected area. The desired vegetation has not <br />successfully established on the affected lands. The remaining reclamation liability on the site only consists of <br />revegetation. <br />The Division sent out notices regarding the release request to the owners of record of the affected land, the Pueblo <br />County Commissioners and to the South Pueblo County Conservation District on March 26, 2015, as required by <br />Construction Materials Rule 4.17.2. The Division did not receive any written objections to the surety reduction. <br />CONCLUSION <br />Based on field observations, the request for a surety reduction will be approved. Notice of the Division's decision <br />regarding the reduction will be sent under separate cover. The Division will reduce the required financial warranty <br />amount to reflect the Division's cost to reclaim the current disturbance. The Division believes the only remaining <br />reclamation liability over the 18 acres is revegetation. The reclamation cost estimation was updated with this <br />inspection to only reflect the cost of revegetation of the affected land. <br />A mining related disturbance occurred on the site prior to the permit being placed in TC. The Operator has <br />previously revised the Mine Plan to reduce the maximum allowed disturbed area. The required financial warranty <br />was reduced when the maximum allowed disturbed area was decreased. In the future, when the site becomes <br />operational the required financial warranty will need to be adjusted. <br />Inspection Contact Address <br />John Sliman <br />Southwest Farms, Inc. <br />1825 Chianti <br />Pueblo, CO 81001 <br />CC: Wally Erickson, DRMS <br />Page 2 of 3 <br />