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(Page 2) MINE ID # OR PROSPECTING ID # M-2005-071 INSPECTION DATE 1-12-2006 OBSERVATIONS INSPECTOR'S INITIALS SSS This was apre-operation inspection of the proposed Benson Brothers Red Shale Pit mine site conducted to verify details specified in the permit application. Structures noted within Z00 feet of the permit area include the DMEA powerline and poles on the northeast boundary, abarbed- wirefence along the west boundary, the Red Canyon Coal Mine road and a gate across that road that sits near the north permit boundary. A barbed wire fence lies off the west boundary. The fences outside the west boundary and the gate on the road need to be included on the application maps. They have been identified in other permit exhibits. No other permanent man- made structures were noted. Land features, vegetation and soils appeared to be consistent with information presented in the permit exhibits. The site exhibits significant sign of mule deer activity and a little sign of elk activity. The dry creek drainage through the northwest corner of the site has some old sediment ponds that were apparently part of the old Red Canyon Coal Mine sediment control system. If located appropriately and if needed, it might be feasible to use one of these old ponds in the shale pits stormwater control system. A small pond, fed by water draining from an old coal mine portal on Joe Belden's property, lies more than 200 feet outside the proposed permit area and down gradient in the dry creek drainage. It appears that flow from the drainage circumvents the pond location. The proposed access road appears to have approximately 250 feet located outside the west side of the proposed permit area. The permit application will need to be revised to incorporate the entire proposed access road, or to revise the location of the access road so it's entirety is located within the current proposed boundary. Permit boundary markers were in place as well as markers indicating the lowest allowable excavation of a proposed slot in the southern ridge. These markers are reportedly set 50 vertical feet below the existing ridge top. The residences of Larry and Janice Chick and Janet Croissant lie below the cliffs located outside the south side of the proposed permit area. There are several outbuildings on these properties that lie close to the outslope below the cliffs. Numerous boulders lie scattered among the buildings at the base of this slope. A geotechnical study will be required to demonstrate that the proposed mining activity will not exacerbate rock fall from these cliffs. Responses to this inspection report should be directed to Steve Shuey at the Division of Minerals and Geology, Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, phone number 970-243-6368. I & E Contact Address NAME OPERATOR STREET CITY/STATE/ZIP Ed Benson Benson Brothers 21240 Austin Road Austin, CO 81410 cc: ^ CE ^ BL ^ FS ^ HW ^ HMWMD (CH) ^ SE ^ WOCD (CH} ^ OTHER