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COLORADO <br />Division of Reclamation. <br />Mining and Safety <br />Department of Natura'. Resources <br />MINERALS PROGRAM INSPECTION REPORT <br />PHONE: (303) 866-3567 <br />The Division of Reclamation, Mining and Safety has conducted an inspection of the mining operation <br />noted below. This report documents observations concerning compliance with the terms of the permit <br />and applicable rules and regulations of the Mined Land Reclamation Board. <br />MINE NAME: MINE/PROSPECTING ID#: <br />MINERAL: COUNTY: <br />Burton Pit M-1987-013 <br />Sand and gravei Rio Grande <br />INSPECTION TYPE: INSPECTOR(S): <br />INSP. DATE: INSP. TIME: <br />Monitoring Stephanie Mitchell <br />February 18, 2020 12:30 <br />OPERATOR: OPERATOR REPRESENTATIVE: <br />TYPE OF OPERATION: <br />Southway Construction Company, Inc. I Loretta Martinez <br />I i 2c - Construction Regular Operation <br />REASON FOR INSPECTION: BOND CALCULATION TYPE: <br />BOND AMOUNT: <br />Normal I&E Program <br />542,184.00 <br />DATE OF COMPLAINT: POST INSP. CONTACTS: <br />JOINT INSP. AGENCY: <br />NA None <br />None <br />WEATHER: INSPECTOR'S SIGNATURE: <br />SIGNATURE DATE: <br />Clear <br />March 12, 2020 <br />+m'e4 <br />The following inspection topics were identified as having Problems or Possible Violations. OPERATORS <br />SHOULD READ THE FOLLOWING PAGES CAREFULLY IN ORDER TO ASSURE COMPLIANCE <br />WITH THE TERMS OF THE PERMIT AND APPLICABLE RULES AND REGULATIONS. If a <br />Possible Violation is indicated you will be notified under separate cover as to when the Mined Land <br />Reclamation Board will consider possible enforcement action. <br />INSPECTION TOPIC: Financial Warranty <br />PROBLEM/POSSIBLE VIOLATION: Problem: The financial warranty is not adequate to reclaim the site in <br />accordance with the approved reclamation plan. This is a failure to maintain the proper financial warranty <br />amount to complete reclamation of the affected lands pursuant to C.R.S. 34-32.5-117(4)(b) of the Act. <br />CORRECTIVE ACTIONS: The operator shall submit adequate financial warranty, as determined by the Division. <br />The Division will be sending a separate surety increase notice to the operator regarding the increase of the <br />financial warranty. The operator will have 60 days from the date on the surety increase notice to post the <br />additional financial warranty. <br />CORRECTIVE ACTION DUE DATE: 5/20/20 <br />INSPECTION TOPIC: Off-site Damage <br />PROBLEM/POSSIBLE VIOLATION: Problem: Land has been affected outside of the approved permit <br />Page I of 5 <br />