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(Page 2) MINE ID # OR PROSPECTING ID # M-1979-097 INSPECTION DATE 10/09/02 INSPECTOR'S INITIALS ESC This was an inspection of the East Rigden Pit, File No. M-1979-097 conducted by Erica Crosby of the Colorado Division of Minerals & Geology. Mary Harnet was present during the inspection. The purpose of the inspection was to review the site in order to complete the Division's reclamation cost estimate. The Division is required to hold a reclamation bond in an amount equal to the cost of reclamation. The Division currently holds a bond in the amount of $52,350.00. The permit area encompasses 521 acres. No mining is taking place on the site. Material is conveyed in from the Resource and Recovery Farm Site located north east of the permit area. The material is crushed, screened and processed on the East Ridgen Property. In addition, a Concrete Plant and Asphalt Plant are located on the site. r The Division verified a number of tasks that would be associated with reclamation of the site. Such tasks include; • structural demolition (cost to tear down and dispose of structures in a landfill), • minor backfill and grading of portions of the site to achieve the final slope configuration, • replace topsoil in the minor bac kfilled regions, • rip the plant yard areas, • backfill and grading of the plant yard areas, • replace topsoil on the plant yard areas, • revegetate the affected land, and • mobilization/demobilization. The estimate to reclaim the site according to the approved reclamation plan totals $377,286.00.. This is an increase of approximately $325,000.00. Notice of increase, including the Division's calculations will be sent under separate cover. The operator has three options regarding the increased bond; submit the additional increase, revise the reclamation plan in the form of a revision, or complete some reclamation on site to reduce the bond liability. In addition, the Division has never received the information requested in the previous inspection of March 13, 2002 regarding protection of the riverside berms along the Cache La Poudre River where floodwaters entered the pit. See page 3 for further detail and submittal deadline date. C~~ 700 ~ •2S~o boob x78'3 ~//.3 I & E Contact Address j' C E NAME Eric Reckentine j' BL OPERATOR Lafarce West, Inc. j' FS STREET 1590 W. 12`° Ave. j' HW CITY/STATE/ZIP Denver, Colorado 80204 j' HMWMD (CH) j' SE cc: Carl Mount; DMG j' WQCD (CH) Mary Harnet; Lafarge West, Inc.