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PERMIT#: M-2003-024 <br /> INSPECTOR'S INITIALS:TCW <br /> INSPECTION DATE: October 24,2016 <br /> OBSERVATIONS <br /> This was a pre-operation inspection of the expansion of the Ward Pit, conducted by TC Wait of the Division of <br /> Reclamation, Mining and Safety (Division). Mr. Randy Schafer was present during the inspection, representing <br /> the Operator. The pre-operation inspection is part of the review process of the permit application that was <br /> filed with the Division by Phillips County.The proposed permit area is to be expanded from the existing 19.8 <br /> acres to add 10.2 acres, increasing the total permit area to 30 acres. The primary commodity to be mined is <br /> sand and gravel for road gravel and base.The proposed post-mining land use is wildlife habitat. The site is <br /> currently part of a conservation area, but has previously been used as cropland. <br /> The site is located approximately 2.5 miles north and 1 mile west of Amherst, CO. The site is accessed from <br /> County Road 49. An existing gravel haul road extends from the County Road east to the existing pit. The <br /> permit sign and public notice sign were posted on CR49. The expansion will be to the east of the existing pit. <br /> The proposed expansion corners were marked with yellow markers. The expansion area is currently being <br /> used as conservation land and native grass species vegetate the land. <br /> The mining plan indicates that mining will be as deep as 15-20 feet below ground surface, and will be done at <br /> a 3:1 slope to the bottom of the pit. If resources are adequate, mining may go deeper than 20 feet. The <br /> existing pit has walls that are sloped and relatively stable. <br /> An unnamed drainage is shown to run through the site. The drainage was dry at the time of the site <br /> inspection, and likely runs only after significant storm events. No standing water was noted in the existing pit <br /> or on the ground in the vicinity of the proposed expansion. <br /> During the inspection, migrating sandhill cranes and other bird species were observed in the area; no wildlife <br /> was observed on the site. <br /> Page 2 of 6 <br />