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(Page 2) MINE ID # OR PROSPECTING ID # M-1979-097 INSPECTION DATE 03/13/02 INSPECTOR'S INITIALS ESC This was an inspection of the East Rigden Pit, File No. M-1979-097 conducted by Erica Crosby of the Colorado Division of Minerals & Geology. Mary Harnet and Kevin Peart were present during the inspection. A 112 Construction Materials permit was issued for the East Rigden Pit on August 13, 1979. The permit was amended on April 24, 1980 increasing the permit area to 521 acres. In 1989 a Technical Revision was filed that allowed a 10-acre swap on the northern portion of the site. The postmining land use is pastureland. The Division holds a bond in the amount of $52,350.00. A mine identification sign and permit boundary markers were posted in accordance with Rule 3.1.12 of the Construction Material Rules & Regulations. In 1999 and 2000, the southern end of the site was reclaimed to a series of groundwater ponds. Vegetation appears to be well established in this area. Mining is actively taking place at the northern end of the site. Material is crushed, screened and sorted on site. A concrete plant, scale and material proccessing area encompass an area of approximately 57 acres. Immediately north of this area is the Asphalt Plant Area. Asphalt is recycled at this facility but none of this material is disposed of in the pit. The 39-acre parcel that was reclaimed and seeded in 2001 was inspected. The operator stated that the area will be reseeded again this spring because o£ the lack of established vegetation. According to the operator, last year was very dry and geese in the surrounding area ate most of the seed. A 15-acre parcel was also seeded in 2001 and appeared to have better success. Both of these areas have been reclaimed to groundwater ponds. The operator will need to submit a copy of an approved Substitute Supply Plan ("SSP") or Augmentation Plan issued by the Office of the State Engineer ("OSE") in order to demonstrate that the postmining land use of can be achieved. A copy of the approved plan demonstrating compliance with OSE must be submitted to the Division by June 13, 2002. The Division inspected an area of the pit that was breached by the La Poudre River during the flood of 1997-1998. According to the operator, flood waters entered the East Rigden Pit on the northeastern edge and continued into the adjacent Port of Entry Pit (Permit No. M-1982- 182) also operated by Western Mobile Northern, Inc. Streambank stabilization in the form of riprap was installed along the La Poudre River where floodwaters entered the site. In addition, inlet and outlet weirs designed to divert floodwaters through the pit were installed in the Port of Entry Pit. It is apparent that the reclamation plan does not adequately address protection of the riverside banks from slides or damage as a result of the mining or reclamation operations. Under the Construction Material Rules and Regulations, areas outside of the affected land shall be protected from slides or damage occurring during the mining and reclamation operation [C.R.S. 34-32.5-116(4)(1)]. The operator will need to file a revision to the permit to adequately address stability of the La Poudre riverside bank where flood waters enter and leave the East Rigden Pit. Specifically, the operator will need to describe the proximity of mining and reclamation to the La Poudre River, details and designs for the riverside bank protection, and future maintenance proposed for the site. Such revision must be submitted by June 13, 2002. As noted above, the Division holds a bond in the amount of $52,350.00. This amount does not appear sufficient to perform reclamation in accordance with the approved plan. The Division will reevaluate the reclamation costs within 60-days of this inspection. If the operator wishes to provide their cost estimate, it must be submitted to the Division by April 13, 2002.