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PERMIT#: M-2008-017 <br /> INSPECTOR'S INITIALS: ECS <br /> INSPECTION DATE:March 15,2022 <br /> OBSERVATIONS <br /> This was a surety reduction inspection conducted by Eric Scott of DRMS of the Derr Pit (M2008-017). DRMS <br /> received a surety reduction request (SR1) from the permittee on February 18, 2022. SR1 requested a <br /> reduction to 20% of the bond amount being held for the installation of the slurry wall surrounding Cells 1-4, as <br /> it had been provisionally approved by the State Engineer's Office (SEO letter dated February 9, 2022 included <br /> with SR1 request). DRMS sent out the required notices for SR1 on February 28, 2022 and has received no <br /> comments or objections to-date. <br /> DRMS met on-site with Kelly Hodge to tour the site. The mine ID sign was present at the site entrance, and <br /> the permit boundary was delineated by existing fence and white PVC markers. Mining activity was taking <br /> place in the SE corner of the are now enclosed by the slurry wall, and material had been extracted from the <br /> center of the site (phase 6) as approved in TR06. Groundwater has not been exposed anywhere else in the <br /> permit, other than within the area enclosed by the slurry wall. <br /> No other issues were noted during this inspection, therefore DRMS will approve the surety reduction to 20% <br /> for the slurry wall cost as requested. Other costs associated with the approved reclamation plan were also <br /> updated by the CIRCES software during this bond recalculation. A decision letter for SR1 will be included with <br /> this inspection report. As stated in the attached letter, DRMS is required to wait 30 days before the decision is <br /> finalized. <br /> DRMS will require submittal of the as-built configuration of the slurry wall as installed for inclusion in the <br /> permit file for this site within 30 days of the date of this report. <br /> Due to the depth of the mining excavation at this site, DRMS will also suggest that the permittee backfill all <br /> mined areas to the final reclamation slopes of no steeper than 3H:1V as soon as is practical, as well as <br /> minimize the length of working faces to minimize the amount of reclamation bond required for backfill <br /> earthwork. <br /> Inspection Contact Address <br /> Kelly Hodge <br /> Broken Arrow Investments LLC <br /> 801 8th.St. Suite 130 <br /> Greeley, CO 80631 <br /> Enclosure—SRI Decision Letter <br /> Page 2 of 3 <br />