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PERMIT #: M-2004-025 <br />INSPECTOR'S INITIALS: SJM <br />INSPECTION DATE: February 8, 2017 <br />OBSERVATIONS <br />This inspection was conducted as part of the Division of Reclamation, Mining and Safety's (Division) normal <br />monitoring program. Cecil Farnsworth representing the Operator, was present during this 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 North Fork Pit is located approximately 1 mile west of Paonia, Colorado and accessed from HWY 133. The <br />site is a 110c operation that includes a total of 9.97 permitted acres. The Division currently holds a financial <br />warranty amount of $22,212.00 for this site. The Division will review the reclamation costs for this site in <br />order to ensure the financial warranty reflects the actual current cost of fulfilling the requirements of the <br />Reclamation Plan. The Operator will be notified if the Division determines that the current financial warranty <br />amount is insufficient. <br />Adequate mine identification signage was noted at the entrance to the site. The affected area was adequately <br />marked with posts. No Fuel or equipment were stored on site. <br />Mining was not taking place during this inspection. Materials stockpiles were located at various locations <br />throughout the pit floor. The two ponds to remain have slopes graded 3:1. <br />Noxious weeds were not observed onsite. <br />The large topsoil stockpile are protected with adequate vegetation. <br />No problems or violations were noted during this inspection. <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 4 <br />