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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1977-304 <br />INSPECTION DATE 05/02/06 <br />INSPECTOR'S INITIALS ESC <br />This was an inspection of the Rex Quarry- Sec. 36 Pit conducted by Erica Crosby of the <br />Colorado Division of Minerals & Geology. Rob Kisner of Pete Lien & Sons, inc. was present <br />during the inspection. The Rex Quarry- Sec. 36 Pit is located approximately 1 mile east of <br />Livermore in Larimer County, Colorado. The Division holds a financial warranty in the amount <br />of $654,000.00. <br />The purpose of the inspection was to inspect an area where the operator requested a surety <br />reduction on 3.5 acres of reclaimed land and reduce the bond to $634,060.00 (approximately <br />$5,696.00 per acre). Of the 400 acre permit area, only 114.8 is to be affected by mining <br />related activities. The release request was received by the Division on November 3, 2005. <br />An inspection was delayed until the spring of 2006 due to adverse winter weather conditions. <br />The 3.5 acre reclaimed area is delineated by markers. The area was graded and seeded in <br />2003. Slopes have been graded to less than 3h:ly and slope towards the east. Vegetation is <br />well established on site, and no erosion features were noted. The operator sprays the site <br />annually for noxious weeds. The operator provided the Division with the seed mixture used on <br />site, and is attached to this inspection report for future reference. <br />The operator will need to provide the Division with a new map depicting the 3.5-acre area to <br />be released from the permit area. This is to avoid confusion at a later date regarding the <br />location of the area released. Once the map is received and approved by the Division, then <br />the surety reduction request in the amount of $19,940.00 (for a remaining $634,000.00) will <br />be approved. The Division's decision date for the surety reduction request is July, 1, 2006. <br />A map must be provided prior to this date, or the operator can extend the Division's decision <br />date in the form of a written request. <br />I & 8 Contact Addreea <br /> r CE <br />NAME Shelly Erickson r BL <br />OPERATOR Pete Lien & Sona, Inc. r FS <br />STREET P.O. HOx 440 r HW <br />CITY/STATE/ZIP Rapid City, SD 57702 r HMWMD (CH) <br /> r SE <br /> r WQCD (CH) <br />cc: Carl Mount; DMG <br /> Rob Xisner; Pete Lien E Sona, Inc <br />