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OBSERVATIONS <br />This inspection was conducted as part of the Division of Reclamation, Mining and Safety's (Division) normal <br />monitoring program. Mr. Trevor Gross and Mr. Rudy Fontanari accompanied me on the inspection. <br />Photographs are included at the end of this report in order to illustrate some of the conditions observed <br />during this inspection. <br />The Western Slope Flagstone Pit is located approximately 2 miles northeast of Palisade and accessed from <br />Rapid Creek Road. The main entrance is located off of Interstate 70. The site is a 112c operation that includes <br />a total of 195.02 permitted acres, with the maximum disturbed acreage at 22.50 acres. The Division currently <br />holds a financial warranty amount of $66,300.00 for this site. The Division has reviewed the reclamation costs <br />for this site in order to ensure the financial warranty reflects the actual current cost of fulfilling the <br />requirements of the Reclamation Plan. The Division had recalculated the bond and is increasing it to <br />$88,251.00 via Surety Increase No. 3 (5103). An overall increase of $21,951.00. This will be sent to the Operator <br />as a separate cover. <br />Adequate mine identification signage was noted at the entrance to the site off of Interstate 70. The affected <br />area was adequately marked with markers. The pit is split into two areas, the north and the middle with an <br />access road that connects the two. <br />Mining was not taking place during this inspection. Material stockpiles were located at various locations <br />throughout the permitted area. An office and scale had been constructed in the middle area of the mine site. <br />A water truck, loader, dump truck and excavator were located on site. Topsoil stockpiles were located on the <br />eastern end of the permit area. Three Grizzly Screeners were also on site. <br />Slopes along the south and east pit perimeter had been graded to 3H:1V or less. There are some large gully's <br />forming on the southeastern corner that appears to be from upland drainage. The active highwall, <br />approximately 15 feet high or less was observed in the north area. <br />Noxious weeds were not observed onsite. <br />Topsoil stockpiles are protected with adequate vegetation and are located along the edges of both pits. Fuel <br />containers observed on site were empty. <br />Responses to this inspection report should be directed to Stephanie Mitchell at the Division of Reclamation, <br />Mining and Safety, Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado <br />81501, phone number (970) 242-5025. <br />Page 2 of 7 <br />