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PERMIT#: M-1977-304 <br /> INSPECTOR'S INITIALS: JLE <br /> INSPECTION DATE: July 18, 2017 <br /> OBSERVATIONS <br /> This was a monitoring inspection of the Rex Quarry, DRMS Permit No. M-1977-304 operated by Pete Lien & <br /> Sons, Inc. (PLS). I,Jared Ebert of the Colorado Division of Reclamation, Mining and Safety (Division) conducted <br /> the inspection. Mr. Rob Kisner with PLS accompanied me during the inspection. <br /> This is a 400 acre 112c limestone quarry. The post mine land use approved for the site is limited Wildlife <br /> Habitat. The permit area for this mine is directly adjacent to the Owl Canyon Quarry (DRMS Permit No. M- <br /> 1977-302) also operated by PLS. Overall, it appears the Operator mines these sites as one unit. <br /> Backfilling and Grading: <br /> Mining at the site appears to have advanced to the east and to the south through various stages. The highwall <br /> is near vertical on the east side of the affected area daylighting to the west. Waste-rock/spoil benches with an <br /> eastern aspect are west of the highwall. The Operator has backfilled, graded and revegetated portions of the <br /> affected area to the west. The reclaimed area slopes gently (4H:1V or less) to the east. There are waste- <br /> rock/spoil benches that run north and south west of the highwall with embankments with an eastern aspect. <br /> The slopes of these bench embankments are generally at the angle of repose. <br /> Explosives: <br /> Blasting operations were not occurring within the Rex Quarry area at the time of this inspection, however the <br /> Operator was preparing for a blast in the adjacent Owl Canyon Quarry to the south. <br /> Financial Warranty: <br /> The reclamation liability set for the site is currently$654,000. The Division holds a bond in the amount of <br /> $654,500 in the form of a letter of credit for the site. This amount was agreed to by the Division and PLS in <br /> December of 1997. It appears this was an interim bond calculation of$6,000 per acre for 109 acres of <br /> disturbance. PLS then submitted Technical Revision No. 3 (TR03) in July of 1998 and clarified the reclamation <br /> plan and a review of the reclamation cost was included. TR03 was approved with the understanding that the <br /> $654,000 would be adequate to reclaim the site. Since that time, it does not appear an updated reclamation <br /> cost estimate has been conducted at the site. In accordance with Rule 4.2.1(2), the Division may review the <br /> financial warranty for adequacy. The Division has begun this review but has found that additional information <br /> is needed to determine the reclamation liability at the site particularly when it comes to structure demolition. <br /> The Division will send PLS a separate letter requesting information needed to conduct a reclamation cost <br /> estimate. <br /> Gen. Compliance With Mine Plan: <br /> The mining plan calls for mining the site in three areas: Area A, C and D. Each of these areas are further <br /> subdivided into small blocks. As mining advances, previously mined areas are backfilled with spoil/waste-rock. <br /> The mining plan updated with Technical Revision No. 6 (TR06) shows the currently approved mining sequence <br /> and backfilling sequence. Overall, it appears that mining has been completed in Area A with the exception of a <br /> small portion of block A4 and A6 on the east side of the affected area. Mining has advanced into Area C in <br /> blocks C1, C2 and C3. The most recent excavation appears to have occurred in Area C3. Mining has <br /> temporarily ceased in this area, but according to Mr. Kisner, PLS will re-initiate mining in this area in August of <br /> this year. <br /> Page 2 of 6 <br />