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(Page 2) MINE ID # OR PROSPECTING ID # M-1977-020 INSPECTION DATE 4-28-2004 INSPECTOR'S INITIALS SSS This inspection was conducted to verify that corrective actions had been conducted to remedy the problems noted in the previous inspection report. EAST LAKE (BLACK PROPERTY) In locations where excavation encroached closer than 200 feet to permanent man-made structures for which a damage waiver agreement or an engineering demonstration of stability was not been submitted, the operator has backfilled and graded the pit slopes to a final grade of 3:1 or less. Geotechnical documentation has been submitted, through Amendment No. 3 to this permit, showing that these backfilled slopes are stable. The backfilled slopes encompass the entire west side of the east pit (except for the outslope of the haul road ramp into the pit), the entire south side of the east pit and the south end of the east highwall extending north to the point where the Amendment No. 3 excavation will take place. The drains placed in the south highwall were working as designed, allowing groundwater to pass through the highwall and into the pit without adversely affecting the stability of the backfilled slope. These drains should also prevent any mounding of the groundwater behind the backfilled slope. The operator has begun pushing gravel material up against the south side of the separator strip between the east and the north pits. This gravel backfill is the beginning of reclamation and restoration of this strip of land. This separator is to be completely replaced during reclamation of this site and no more excavation of this separator will occur.. The sight berm around the Black property has been regraded to reduce the slopes to a grade of 3:1 or less as specified in the permit. This measure should increase chances for successful revegetation of these berms. The operator intends to perform revegetation efforts this fall to take advantage of the winter moisture. Additional overburden and topsoil are stockpiled on site for future reclamation. Responses to this inspection report should be directed to Steve Shuey at the Division of Minerals and Geology, Grand Junction Field Office, 101 South 3rtl Street, Room 301, Grand Junction, Colorado 81501, phone number 970-243-6368. I & E Contact Address NAME Brent Kerr OPERATOR Oldcastle SW Grouo. Inc. STREET P. O. Box 3609 CITY/STATE/ZIP Grand Junction. Colorado 81502 cc: ^ CE ^ BL ^ FS ^ HW ^ HMWMD (CH) ^ SE ^ WOCD (CH) ^ OTHER