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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1979-205 <br />INSPECTION DATE: 1-11-06 <br />OBSERVATIONS <br />INSPECTOR'S INITIALS GRM <br />This inspection was conducted as part of the normal monitoring program established by the Colorado Division of <br />Minerals and Geology. The MMM /Chambers Pit is the active pit for the Old Castle gravel complex east of Rifle <br />Colorado. Brent Kerr from Old Castle SW was present for the inspection. <br />The mine identification sign and affected area boundary markers are in place and incompliance with Rule 3.1.12. <br />The main mining activities are now focused on cleaning up materials reserves in the north pit area. The inspector <br />noted stockpiles of processed and raw materials located on the pit floor. Old Castle is starting to move a large <br />topsoil stockpile on the far north end of the permit area to finish mining and start reclamation work in this area. <br />The south pit area is now mined out and reclamation has begun. Water levels are low enough for the inspector to <br />verify that slopes are 3:1 or better for 5 feet below the waterline and 5 feet above as required by Rule. Staff noted <br />that the topsoil placed on the slopes above waterline is disked, but seeding will be done this spring, <br />The inspector noted no fuel or oil secondary containment issues at this time. <br />Old Castle is controlling all stonnwater run offby directing it into the pit areas. No erosion, sedimentation or off <br />site damage is noted at this time. <br />No significant infestations of noxious or other problematic weeds were noted on site during this inspection. <br />The reclamation cost estimate was not recalculated as part of this inspection. The current estimate was recalculated <br />less than three years ago when an amendment added in additional acreage. The operation is in compliance with the <br />approved mine plan and reclamation plan. Therefore, the current financial warranty is believed to be adequate to <br />reclaim the site per the approved reclamation plan. <br />Responses to this inspection report should be directed to Russ Means at the Division of Minerals and Geology, <br />Grand Junction Field Office, 101 South 3`d Street, Room 301, Grand Junction, Colorado 81501, phone no. 970-241- <br />1117. <br />I & E Contact Address cc: <br />^ CE <br />NAME: Brent Kerr ^ BL <br />OPERATOR: Old Castle SW ^ FS <br />STREET: P.O. Box 3609 ^ HW <br />CITY/STATE/ZIP: Grand Junction, CO 81502 ^ HMWMD (CH) <br />^ WQCD (CH) <br />^ OTHER <br />