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PERMIT#:M-1976-059 <br /> INSPECTOR'S INITIALS:LJW <br /> INSPECTION DATE: August 23,2017 <br /> OBSERVATIONS <br /> This inspection was conducted as part of the current Succession of Operators(SO-2)that is currently in <br /> process,transferring the permit from Skanska USA Civil West RMD,to PEPS Transport of Colorado LLC. The <br /> Cortez Pit is a 112C operation located approximately 5 miles Southwest of Cortez, CO. The site is on private <br /> land and is within a fenced compound now owned by PEPS Transport of Colorado, LLC. The site consists of <br /> 36.4 permitted acres and is in final reclamation. The Division currently holds$18,838.00 in financial warranty <br /> for the site. A Reclamation Cost Estimate Update was performed as part of SO-2. Please see the enclosed <br /> Financial Warranty Request for details on the required financial warranty to be posted by PEPS Transport and <br /> complete SO-2. Four Photos accompany this report to illustrate the current site conditions. <br /> Proper mine identification signage was posted at the entrance to the site and the permit boundary was clearly <br /> marked with T-posts around the perimeter. The site has been approved for intermittent operations and <br /> according to the annual reports provided by the Operator the last date of excavation was in 2012. Prior to the <br /> sale of the property Skanska had completed the reclamation of the site. The approved reclamation plan calls <br /> for two large benches to be graveled and used as a lay down yard with an Industrial/Commercial post mining <br /> land use. Photos One and Two show the upper bench which appears to be stable and in good condition. Also <br /> visible in Photos One and Two are the sloped areas along the northern edge of the upper bench. The slopes <br /> have been relaxed to approximately a 21-1: 1V configuration and have been revegetated. The slopes appear to <br /> be stable and are not showing any signs of settling, slumping or erosion. The lower bench can be seen in <br /> Photos Three and Four. It also has been graveled and graded to be used as a lay down yard and is in good <br /> condition. The area between the two benches has been sloped and revegetated as well. The reclamation has <br /> been conducted in accordance with the Act and Rules as well as the approved reclamation plan. The <br /> vegetation in the reseeded areas appears to be adequate in both density and diversity and the graveled <br /> benches are stable. Site maintenance including monitoring and treatment of noxious weeds, erosion control <br /> and general monitoring will be necessary for the continued life of the permit. <br /> The overall footprint of the site is in good condition and is free from trash and debris. The site is free draining <br /> and no impounded storm water or signs of erosion were noted during the inspection. Evidence of chemical <br /> treatment of noxious weeds was observed, and no new growth was noted. All responses to this report should <br /> be directed to Lucas West at the Colorado Division of Reclamation, Mining and Safety at 1313 Sherman Street, <br /> Room 215, Denver CO 80203, by phone at (970)-243-6368 or by email at lucas.west@state.co.us. <br /> Page 2 of 5 <br />