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PERMIT#: M-2005-067 <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 20 miles southwest of Pritchett east of East Carizzo Creek. <br /> The site was last inspected in October 2010. At the time of this inspection, the site was dry and mining <br /> operations were occurring along the northern side of the site. The entrance road was marked with the permit <br /> sign and the permit boundaries were marked with t-posts. The permit area is 28 acres. Based on aerial <br /> photography estimates (GoogleEarth, 11/16/2013), the disturbed area is approximately 12.2 acres. <br /> The quarry is mining Dakota/Purgatory Formation sandstone. Mr. Sikes is using a product called Ecobust to <br /> break the stone into slabs, then hand tools to separate and remove the blocks. No blasting is occurring at the <br /> site. Topsoil is located on the edges of the disturbed area. Stockpiled material is located throughout the site. <br /> No reclamation work has been 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 Annual Report for 2017 from the Operator should include accurate GPS locations for the <br /> corners of the permit area on the map. <br /> 3. Bond evaluation should be done at the time of the next DRMS inspection. <br /> Page 2 of 5 <br />