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(Page 2) MINE ID # OR PROSPECTING ID # M-1977-170 INSPECTION DATE 9/28/04 INSPECTOR'S INITIALS ESC OBSSRVATIONS This was an inspection of the Butala Gravel Pit conducted by Erica Crosby and Carl Mount of the Colorado Division of Minerals and Geology. Frank Butala and Tom Eve representing Butala Construction Co. were present during the inspection. The site is located 1.5 miles north west of Salida in Chaffee County, Colorado. 'Ihe site is located within an area that is zoned industrial. The Butala Gravel Pit is a 112 sand and gravel operation, permitted for 84 acres. The permit was issued on October 1, 1978. In 1998 the permit was expanded from 22 acres to 84 acres. Mining will occur in a number of phases, each approximately 12 acres in size. The Division holds a reclamation bond in the amount of $90,500.00. The approved postmining land use is industrial. A mine identification sign and boundary markers were observed. Topsoil and overburden piles were noted along the perimeter of the permit area. The site is active in Phase 1 located in the northwest corner of the permit area. Mining will progress from west to east. The excavated material is hauled to the wash plant in the central permit area where it is washed and stockpiled before it is transported to batch plants. In the mine plan, the operator states thaC slopes will be mined to 2h:ly. It was noted during the inspection that pit slopes are near vertical. The operator will need to revise the mining and reclamation plan if slopes are to be mined steeper than 2h:ly. Please see page 3 for compliance due dates. A small spring was noted on the north end of the Phase I area. The source of the water is an old irrigation pipe that has been cut. Some cif the water runs through the cut pipe into the pit. The spring runs through the irrigation season. The wash ponds, wash plant and stockpiling area are located adjacent to the Arkansas River. The wash plant is a portable unit, and the fines settle through a series of ponds. The east wash pond facility is not connected to the other wash ponds on site. The construction of this pond was addressed in Technical Revision 01 (TR-O1). The slopes of the wash pond are 1~h:ly measured with an abney level. The ponds will ultimately be reclaimed to 3h:ly and replaced with topsoil. The center of the mine contains the creosol area. No mining is to take place in this area, only the stockpiling of material. The area is 6.6 acres in size. The EPA removed the upper 3-4' of material €rom this area and stockpiled and capped the material on site. Markers delineate this area. The Division inspected the fuel storage area. Tanks were mostly portable units, however, the tanks that are not portable will need to be bermed to contain any spills. In addition, areas where fuel spills were noted will need to be cleaned up in accordance with the approved plan. See page 3 for compliance due dates. I & B Contact Address ~ CE NAME Frank Butala ~ BL OPERATOR Butala Construction Co. ~ FS STREET P.O. Box 907 ~ HW CITY/STATE/ZIP Salida, CO 81201 ~ HMWMD (CH) ~ SE ~ WQCD (CH) Cc: Carl Mount; DMG (via e-mail)