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(Page 2) MINE ID # OR PROSPECTING ID #: M-1981-006 INSPECTION DATE: 1-11-06 OBSERVATIONS 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 West Rifle Pit is a 112c permitted site located in the Rifle, Colorado. The 111 permit is tied to the 112 by a common lake. The inspector contacted Central Aggregates prior to the inspection and due to scheduling and current work on site no representative was present. The mine identification sign and affected area boundary markers aze in place and in compliance with Rule 3.1.12. The inspector noted mining activities within the permitted area. A loader was dumping pit run into a screener, which was then separating out the raw materials. The inspector observed the material was wet and no dust was noted coming from the processing. Some reclamation has occurred along the eastern and western banks, Slopes are 3:1 or better in most parts. No erosion or sedimentation issues are noted. Stormwater is contained on site. Excavation appears to be continuing along the north side. Vegetation along the banks noted are grass species of slender and crested wheat grass, with intermittent ricegrass as well. Willows, rabbit brush and four-winged saltbushes are present in healthy numbers and dispersed through out the area. Tamarisk and Russian olive are well ensconced, but were established prior to the rules governing control and is therefore grandfathered in. Knapweed and thistle are prevalent in the areas of tamarisks. The operator has been in contact with the Garfield County Weed Control District and plans for treatment have been addressed. Therefore, the noxious weeds are not being noted as a problem. As part of the ] 11 portion of this inspection an issue is noted concerning water augmentation plan progress. The issue is outstanding for this site as well, but a 112 is not under the same time constraints for reclamation as a 111. Under the rules that govern a 1 l lc permit, the site of the disturbance must be reclaimed within 5 years of the issuance of the permit. Water augmentation plans are pending which when completed should make the release of the 111 permit possible. The operator should be looking into finalizing the plans as soon as possible. A letter dated September 9`h, 2004 submitted by the operator states that the issue should be settled in a couple of months which is now 15 months later. All fuel storage was properly stored in secondary containment and no leaks or spills aze noted. The Financial Warranty will be reviewed in the next 30 days as the last bond recalculation was last done in 2000. No significant variations from the approved mining plans are noted. Therefore, staffwill just update all the accepted tasks from the previous estimate.