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(Page 2) MZNE ID # OR PROSPECTING ID # M-1977-347 INSPECTION DATE 04/10/07 INSPECTOR'S INITIALS ESC This was an inspection of the Slab Canyon Quarry conducted by Erica Crosby of the Colorado Division of Reclamation, Mining and Safety. Gordon Benton of Holcim (US) Inc., Bill Schenderlein and Cali Baueu of Applegate Group, Inc. were present during the inspection. The Slab Canyon Quarry is located 7 miles northwest of Buckeye in Larimer County. A 112 mining and Reclamation Permit was issued to Ideal Basic Industries, Inc. on October 10, 1978 for a permit area of 30 acres. AM-O1, approved by the Division on April 28, 1994, increased the permit area to 250 acres. The permit was transferred to Holnam, Inc. on March 23, 1990 and transferred again to Holcim (US), Inc. on September 6, 2002. The Division currently holds a financial warranty in the amount of $184,819.00. Mining is the Slab Canyon Quarry ceased a number of years ago. The active mining and reclamation was limited to Phases 1. The upper portion of the quarry has been reclaimed utilizing the stone berm filters and tree pads approved in the AM-O1 reclamation plan. The berm filters are well vegetated with perennial grasses. The Ponderosa Pine trees planted in the berms are thriving. Tree heights vary in height from 3 feet to 6 feet. Trees planted higher on the slope appear to be larger and more mature. A large radio tower was constructed on top of the ridge, in the middle of the Phase I reclamation. Construction of this tower and associated facilities affected some of the reclamation performed by the operator. The tower and associated disturbance was incorporated into Technical Revision O1 in 2004. The lower portion of Phase I consists of an open pit that has not been reclaimed. The pit acts as a sediment control facility for the site. The Reclamation Plan Map of AM-O1 depicts a number of stock water basins to be constructed on site. The stock water basins for Phase I have been reshaped and further defined. The large gully noted during the previous inspection has been regraded and seeded. Vegetation is well established in this area. The pit will need to be reclaimed in accordance with the approved reclamation plan consisting of benches or 3h:ly graded slopes. I & 8 Contact Address ^ CE NAME Gordon Benton ^ BL OPERATOR Holcim (US), Inc. ^ FS STREET PO Box 1548 ^ HW CITY/STATE/ZIP LaPorte, CO 80535 ^ HMWMD (CH) ^ SE ^ WQCD (CH) Cc: Carl Mount; DRMS Bill Schenderlein; Applegate Group, Inc.