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(Page 2) MINE ID # OR PROSPECTING ID #: M-1988-037 INSPECTION DATE: 8-30-04 INSPECTOR'S INITIALS GRM This inspection was conducted as part of the normal monitoring program established by the Colorado Division of Minerals and Geology. The Norwood Pit is located Northwest of Norwood, Colorado on County Road 44.SZ. Brent Kerr, representative for United Companies accompanied the inspectors on site. The Norwood Pit is a 112c permitted site. The approved Mining and Reclamation Plan calls for aphased operation. Current conditions reflect processing and stockpiling in Phase 1 and mining in Phase 2 as approved. Excavation of materials is noted right up to the permit boundaries along the southem edge ofthe site. Discussions indicate that the pit edge will be mined to this point for the duration of mining. The approved Mining Plan for Amendment AM-01 specifically states that" outside perimeters of the mine will be mined to a 3:1 slope". The operator is not following the approved Mining Plan as written. Therefore, staff will have to evaluate the reclamation bond to ensure that enough bond is held to cover this liability. (Photos 1,2,3 and 4) The mining of hi¢lrwalls into the permit boundaries is noted as a problem with the corrective actions) and correction date specified on the last pace of this report The affected azea boundary mazkers were not observed and must be installed per the requirements of Rule 3.1.12 (2) that state: The boundaries ofthe affected area will be mazked by monuments or other markers that aze cleazlyvisible and adequate to delineate such boundaries. The specific concern noted is a lack of boundary mazkers along the southem edge of the permit boundary and no mazkers between Phase 2 and 3 to the east. The boundaries should be surveyed inand t-posts, painted orange, placed along the boundary lines every 150 to 200 feet. The lack ofboundarv markers is noted as a problem with the corrective action(s) and correction date specified on the last paee of this report. The inspector noted a portable fueling station had been brought on site. The storage tank does not have adequate secondary containment for the tank. Also considerable soil staining indicates careless refueling practices. The contamination of soils and inadequate secondary containment is noted as a problem with the corrective action(s) and coaection date specified on the last page of this report. (Photo 5) Reclamation efforts to date consist of the establishment of a slope along the west side of the pit area. Grasses aze 6 to 12 inches high and include wheat grasses, Indian ricegrass and other perennial native and introduced grass species. There is some discussion by the operator of removing a portion of Phase 5 azea from the permit. If this is done, the operator could begin reclamation efforts along the slopes of the northwest azea to reduce reclamation liabilities later on. Some Canadian thistle is noted in the pit floor along the western edge. However, a major infestation noted in the past inspection report has been eradicated. The operator has kept up with the approved weed control plan. No stormwater, sedimentation or erosion issues were observed at this time. There has been some use by the operator of a road established by the landowner for access to fields south of the permit azea. The operator has permission to use the road, but the Division does not have a record of that approval. The road is outside the permit boundaries, but because it was established for other reasons is not considered off-site damage. Documentation needs to be supplied authorizine use of the road. The operator should use extreme caution in any activity outside the approved boundaries to avoid a possible violation for off-site disturbances.