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(Page 2) MINE ID # OR PROSPECTING ID #: M-7980-193 INSPECTION DATE: 7-31-07 INSPECTOR'S INITIALS: _JIL OBSERVATIONS Completed a partial inspection of this operation in order to meet the possible new operators (permittees) and to review and discuss existing conditions at the site. In addition, discussed various permitting and revision processes (technical revisions, amendments, etc.). Virgil and Lorraine Mitchell have submitted a request to succeed as operators of the Sokol pit since they have recently purchased the Sokol ranch. Met with Virgil and David Mitchell at the entrance of the permit area. Discussed the existing access road which is not part of the permit area. The road has multiple uses; accessing the sand and gravel pit, a radio tower and outlying areas of the ranch. As landowner, Mr. Virgil Mitchell plans to install waterbars or diversion berms to prevent stormwater runoff from eroding portions of the access road and the north-south county road (Soapweed road). Since the road is not part of the permit area Mr. Mitchell was told he does not need to involve the DMG. Drove to the active gravel pit. Observed permit boundary markers along the side of the road. It appears this pit has not been actively mined for awhile since the unvegetated highwalls are eroding into the pit area. Mr. Mitchell said this area has experienced a few severe precipitation events in the last few weeks (ponded water in the west part of the permit area is good evidence that the area has received substantial rainfall recently). Since the eroded sediments are not exiting the permit area, and because the eroded areas will eventually be mined, this situation does not pose a problem. Currently, about half of the 41 acre permit has been disturbed. This includes topsoil stockpile areas and the excavated pit. Mining is progressing to the east and north. Pit highwalls are about 20 -30 feet. The pit floor is slightly sloped to the west, as approved in the mining plan. A portion of the west and south highwall have been graded, topsoiled and re-seeded. These areas are slightly rilled which will require some additional reclamation. Also, as approved, the highwalls are to be benched/furrowed. Vegetative density is barren to moderate on the re-seeded slopes. The topsoil stockpi{es are adequately vegetated and stable. Mr. Virgil Mitchell mentioned digging several test pits within the permitted area (the existing pit floor) to determine the depth of sand and gravel. He was told that there is no depth restriction in the approved permit and, since the test pits are within the approved permit area, he does not need to seek or obtain any other permit or amend the existing permit. Mr. Mitchell was told that if he encounters groundwater, there will be a problem; not only with the DMG but also with the SEO. Mr. Mitchell was told that a financial warranty requirement to complete reclamation would be calculated by Monday (8-5- 02) and, once the financial warranty and performance warranty are submitted and accepted, the Sokol permit would be turned over to the new permittees. Mr. Mitchell was instructed to obtain a copy of the Sokol permit file so he knows what has been approved in order to remain in compliance with the approved mining and reclamation plans. Did not observe any obvious problems. I & E Contact Address NAME: Chuck McCulloh OPERATOR: EI Paso Countv DOT STREET: 3460 N. Marksheffel Rd. CITY/STATE2IP: Colorado Springs CO. 80922 Harry Posey (e-mail) cc: ^ CE Virgil & Lorraine ^ BL Mitchell ^ FS 29975 Harrisvill e Rd^ HW Calhan, CO. ^ HMWMD (CH) 80808 ^ SE ^ WQCD (CH) ^ OTHER