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(Page 2) MINE ID # OR PROSPECTING ID # M-79-059 INSPECTION DATE 1/17/06 INSPECTOR'S INITIALS ESC OBSBRVATION3 This was a routine inspection of the Brownwood Pit conducted by Erica Crosby of the Division of Minerals and Geology. Richard Coulson of Coulson Excavating was present during the inspection. The Brownwood Pit is located '~ of a mile southeast of Loveland in Larimer County, Colorado. An 112c Mining and Reclamation Permit was issued on November 20, 1979. The permit was amended in 1986 (AM-O1) to add 65 acres to the permit area and in 1988 (AM-02) to add 30 acres tO the permit area. The total permit area is 149.7 acres. The pOetminirig land use is wildlife habitat and the Division holds a financial warranty in the amount of $89,136.00. The site is mainly a staging area for product, recycled asphalt material and two asphalt batch plants. Products from the adjacent Coulson pits are hauled in for processing. Mining has not occurred on site for a number of years. The areas that have been mined have either been reclaimed to groundwater ponds, or backfilled above the groundwater table. Additional grading and seeding of various areas are in need of completion. A low water crossing was noted located in the Big Thompson River. This crossing was constructed by ranchers' years ago. The operator is currently in the process of permitting this crossing with Larimer County to access the Gardels Pit (M-2005-033), which is currently under review with the Division. The operator should be aware that the low water crossing will need to be incorporated into the Brownwood permit since its location is inside the permit area. The following adequacy question was included in the Gardels adequacy letter of July 8, 2005; "Exhibit C-1 depicts a haul road and a river crossing over the Big Thompson River. The applicant states that materials will be processed at the adjacent Brownwood Pit processing area operated by Coulson Excavating Company (Permit Number m-1979-059). The Division could find no indication in the Brownwood Pit permit file that the haul road and river crossing have been permitted. Coulson Excavating Company will need to file a revision to the Brownwood Pit permit to allow the haul road and river crossing to access the Gardels Pit. Such revision must be approved and additional bond posted prior to the construction and use of the road and river crossing." I & S Contact Addreae NAME Mr. Richard Coulson OPERATOR STREET CITY/STATE/ZIP ^ CE ^ BL Coulson Excavating Co., Inc. ^ FS 3609 N. CR 13 ^ HW Loveland. CO 80538 ^ HMWMD (CH) ^ SE ^ WQCD (CH) Cc: Carl Mount; DMG (via a-mail)