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(Page 3) MINE ID # OR PROSPECTING ID # M-2001-001 INSPECTION DATE 7/14/05 INSPECTOR'S INITIALS WHE Permit documents indicate that weeds, including regulated noxious weeds, were well established throughout the area prior to the permit application. Therefore, the presence of noxious weeds at the site is anticipated and a limited presence of noxious weeds within the permit area should be tolerated. The operator is encouraged to continue aggressive weed control efforts throughout all portions of the permit areas. The existing $92,000 financial warranty covers the cost of reclamation fora 20-acre disturbance with complete backfilling of the pit to an elevation above the groundwater level. The existing disturbance was estimated at less than 15 acres. Therefore, the existing $92,000 financial warranty appears sufficient to ensure completion of reclamation. Subsequent to verification of an approved water augmentation plan or substitute supply plan DMG will adjust the amount of financial warranty required for the operation by removing the backfilling and revegetation tasks associated with backfilling the pond(s) to an elevation above the anticipated water line. No problems or possible violations were observed. Response to this report should be addressed to Division of Minerals and Geology, to the attention of Wally Erickson, 701 Camino del Rio, Room 125, Durango, CO 81301, phone (970} 247-5469. Enclosure: Five photos taken during the inspection; Complaint from CFAR, dated 6/13/05, DMG receipt date 6/14/05; Operator's response to CFAR complaint, dated 6/24/05, DMG receipt date 7/1/05; DMG Weed Control Policy, dated 12/17/02. I & E Contact Address NAME Aryol Brumley OPERATOR Four States Apgregates, LLC STREET P.O. Box 1568 CITY/STATE/ZIP Cortez. CO 81321-1568 cc: Harry Posey, DMG ^ CE ^ BL ^ FS ^ HW ^ HMWMD (CH) ^ SE X Ms. Pat Kantor, CFAR