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PERMIT #: M-2001-017 <br />INSPECTOR'S INITIALS: ECS <br />INSPECTION DATE: May 27, 2015 <br />OBSERVATIONS <br />This was a routine site monitoring inspection conducted by DRMS at the Carbon Valley Resource site. The <br />inspection was conducted by Eric Scott of CDRMS. The DRMS representative met with Lynn Mayer-Shults of <br />L.G. Everist at the site at approximately 1030. The site entrance is located off the east side of Hwy 7 <br />approximately 1 mile south of where it intersects Highway 119 (also known as Firestone Boulevard). <br />DRMS toured the site with the L.G. Everist representatives. Current activity in the mine consists of mining in <br />Area B, cleaning out the pit bottom and repairing flood damage around a gas well setback from 2013. The <br />office and processing areas of the site are as depicted on the mining plan. <br />During the site tour, the mine appeared to be in compliance with the approved mining and reclamation plan. <br />The only problem noted during the inspection was the presence of noxious weeds at the site (cheatgrass, <br />bindweed, thistle and Russian olive). These noxious plants need to be eliminated before they become <br />established and widespread. In areas still to be reclaimed, this could easily be done using a dozer when the <br />area is recontoured or filled during reclamation. Other areas will require weed control measures such as <br />spraying or mowing. The presence of noxious weeds is cited as a problem in this report along with the <br />corrective actions. <br />This concluded the inspection and DRMS left the site at approximately 1100. <br />Inspection Contact Address <br />Lynn Mayer-Shults <br />L. G. Everist, Incorporated <br />7321 E. 88th Ave., Ste 200 <br />Henderson, CO 80640 <br />GENERAL INSPECTION TOPICS <br />The following list identifies the environmental and permit parameters inspected and gives a categorical evaluation of each <br />RECORDS----------------------------------- Y (FN) FINANCIAL WARRANTY-------- Y (RD) ROADS------------------ Y <br />) HYDROLOGIC BALANCE------------- Y (BG) BACKFILL & GRADING ---------- Y (EX) EXPLOSIVES--------- NA <br />PROCESSING WASTE/TAILING---- NA (SF) PROCESSING FACILITIES------- Y (TS) TOPSOIL---------------- Y <br />GENL MINE PLAN COMPLIANCE- Y (FW) FISH & WILDLIFE----------------- NA (RV) REVEGETATION---- l'B <br />;SM) SIGNS AND MARKERS----------------- Y (SP) STORM WATER MGT PLAN---- NA (SB) COMPLETE INSP---- NA <br />OVERBURDEN/DEV. WASTE--------- NA (SC) EROSION/SEDIMENTATION--- NA (RS) RECL PLAN/COMP-- NA <br />T) ACID OR TOXIC MATERIALS------- NA (OD) OFF-SITE DAMAGE ----------------NA (ST) STIPULATIONS------- NA <br />Y = Inspected and found in compliance / N = Not inspected / NA = Not applicable to this operation / PB = Problem cited / PV = Possible violation cited <br />Page 2 of 2 <br />