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PERMIT#: M-2006-024 <br /> INSPECTOR'S INITIALS:TCW <br /> INSPECTION DATE: October 18,2016 <br /> OBSERVATIONS <br /> This was a routine monitoring inspection conducted by TC Wait of DRMS; Mr. Ray Sikes was present <br /> representing the operator. The site is located about 22 miles southwest of Pritchett west of East Carizzo Creek <br /> and north of the old Carrizo Springs townsite. The site was last inspected in October 2010. At the time of this <br /> inspection, the site was dry and no mining activity was occurring. The entrance road was marked with the <br /> permit sign and the permit boundaries were marked with t-posts. The permit area is 9.9 acres. Based on <br /> aerial photography estimates (GoogleEarth, 11/16/2013), the disturbed area is approximately 5.3 acres. <br /> The Annual Report dated May 2016 includes a site map that shows the old permit boundaries and does not <br /> reflect the boundaries that were revised in 2010. <br /> The quarry is mining Dakota/Purgatory Formation sandstone. No blasting is occurring at the site, but Mr. Sikes <br /> indicated he may try working with a product called Ecobust to break the rock at this quarry. Native topsoil is <br /> minimal on the bedrock at this site, but what was available is located on the edges of the disturbed area. <br /> Stockpiled material is located throughout the southwestern part of the site. No reclamation work has been <br /> done at this point. <br /> Minimal erosion was noted on the site. No evidence of standing water was observed in the pit. Weeds were <br /> not observed in the disturbed area. <br /> The site is generally stable and in good condition. <br /> RECOMMENDATIONS: <br /> 1. As mining progresses, the Operator should work to establish the final grades and begin <br /> reclamation. <br /> 2. The 2016 Annual Report map and subsequent maps should be updated to include the correct <br /> permit area boundaries and disturbed area. Accurate GPS locations for the corners of the permit <br /> area should be included on the map. <br /> 3. Bond evaluation should be done at the time of the next DRMS inspection. <br /> Page 2 of 6 <br />