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(Page 2) MINE ID # OR PROSPECTING ID # M-1987-064 INSPECTION DATE 2/11/04 INSPECTOR'S INITIALS RCO, HHP OBSERVATIONS This partial inspection was performed by the Division as part of its monitoring of Construction Materials 112c permits and to view the area that is to be added to this permit during the upcoming amendment to this permit. The operator was contacted about the inspection and a time was arranged to meet for the inspection. The operator's representative named on page one was present during the inspection. The permit ID sign was posted at the entrance to the site, but permit boundary markers were not checked. The operation was active at the time of the inspection: an excavator was on a gravel bar at the north end of the river channel that is approved for mining under this permit, and haul trucks were delivering pitrun to the stockpile area at the NE part of the processing yard. The river was low at the time of the inspection, and haul traffic was able to cross the active portion of the river channel via a series of placed culverts and fill material, which are allowed under this permit. Though nothing written has been received from the operator pertaining to changes in the mining plan or mining areas, the operator stated that it is likely that the permit will be revised to terminate the excavation activity in the instream areas, including use of the present river crossing location. The non-mining areas of the existing site include stockpiles, processing, concrete hatching, shop and other buildings, equipment storage, fuel station, truck scales, and temporary concrete waste area. All activities and structures observed have been approved under this permit. Concrete waste is stored next to the shop until it is used as riprap or ground and recycled. The site is approved for an industrial post-mining land use. While standing on the top of the stockpile it was possible to view areas that are planned to be affected in the upcoming amendment, Nothing written has been received from the operator regardingf this amendment, but it was discussed that a different location will be used for hauling or conveying material across the river. The location will be south of the present crossing by about 200 feet. The mining area to be added will not be in the channel but set back from the east bank of the river by several hundred feet. The mining area was viewed on the ground by driving to the south edge of the area via county roads and private road. The planned excavation will result in a pond in what is presently a fairly level pasture. It was indicated that many of the mature cottonwoods between the river and the proposed pond will remain undisturbed. There is a copyof a gravel pit well permit in the file (March 2003) but it does not apply to lands currently approved for mining, and has not been reviewed by this office. The operator is reminded that he must ensure that the legal ability to expose groundwater is obtained before mining. There did not appear to be any complicating issues concerning the site or the proposed operation, as it was explained by the operator. (Please note: This site and the proposed operation will be examined in much more depth upon the Division's receipt of the upcoming amendment application.) The bond was reviewed for the June 1999 approval of TR-02, and is now due for review again. The bond amount will be recalculated when the amendment is submitted. No further items were observed during the inspection. Responses to this inspection report should be directed to the Division of Minerals and Geology, 701 Camino del Rio, Room 125, Durango, Colorado 81301, Attn: Bob Oswald; phone no.970-247-5193. 1 & E Contact Address NAME Dave Dillon OPERATOR Sandco, Inc. STREET PO Box 4440 CITY/STATE/ZIP Durango, CO 81302 cc: Harry Posey, DMG ^ CE ^ BL ^ FS ^ HW ^ HMWMD (CH) ^ SE ^ WOCD (CH) ^ OTHER