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(Page 2) MINE ID # OR PROSPECTING ID #: nt->nna-mu INSPECTION DATE: May gr7.I1~ INSPECTOR=S INITIALS: ~_ OBSERVATIONS 1, A site inspection was made in response to a complaint received from Ron Griese, CDOT Region 4 Utility Engineer, on May 8, 2006 via telephone. Mr, Griese expressed concern over the stability of the highway embankment and reported a large volume of water being discharged from the Lupton Lakes Mining Operation (Permit No. M-2004-078) on the east side of Colorado Highway 85 through CDOT's concrete box culvert beneath Highway 85 during the weekend of May 6 8c 7, 2006. The discharge was reported to be unauthorized by CDOT. See attached May 18, 2006 complaint letter from Mr. Griese. Prior to the inspection, an adjacent landowner to the west of Highway 85, Andrew Chavers, appeared and also expressed a complaint of a large volume of water being discharged onto his property. See attached complaint letters from Mr. Chavers received on May 16 ~ 23, 2006. Prior to the inspection, a 2nd adjacent landowner immediately east of Highway 85, Tony Finley, appeared and expressed a complaint of offsite damage to his property. No written complaint letter has Veen received from Mr, Finley. Prior to the inspection this inspector met with CDOT representatives Ron Griese and Ed Steiber as well as Andrew Chavers and Tony Finley to discuss the nature of their complaints. Following the discussion, a site inspection of the Lupton Lakes Resource was made. Present at the time of inspection were Ron Griese and Ed Steiber of CDOT and Jeff Newman, Dave ]ordan, and Kevin Moore of Lafarge North America, Digital photographs of the area in question were taken and are attached to this report. Photographs taken by CDOT representatives on May 8, 2006 of the water discharge concern were given to this inspector and are included in the permit file for M-2004-078. 2. Discussion with Lafarge representatives indicated that a large volume of irrigation tailwater had been released from undisturbed cropland within the permit area of M-2004-078 during the weekend of May 6 & 7, 2006. The irrigation tailwater had been discharged through the drainage channel immediately east of Highway 85 and the Porter Seepage Ditch and through the large concrete box culvert (cattle crossing) beneath Highway 85. It is the Division's understanding that SW TKO is now the landowner of the undisturbed, irrigated cropland within the boundaries of Permit M-2004-078. 3. The site inspection revealed the following observations: Photographs taken by CDOT representatives on May 6, 7, & 8, 2006 of the concrete box culvert and area immediately east of Highway 85 indicate excessive erosion of the drainage channel, structure that SW TKO/Lafarge was in the process of stabilizing as part of the mining and reclamation operation. The photos also indicate excessive sedimentation of drainage waters that had pooled up at the bottom of the drainage channel/east edge of concrete box culvert. SW TKO/Lafarge was in the process of "cleaning out" the accumulated sediment at the bottom of the drainage channel which had accumulated during the previous 3 days. SW/TKO had previously excavated out sediment laden waters that had "pooled up" in this area and had used a piece of heavy equipment to enter onto and discharge the "muddy water" onto Tony Finley's property immediately south of the drainage channel stabilization area. Also, it also appeared that the property boundary/permit boundary separating the Finley/SW TKO property was unclear. Mr. Finley expressed frustration over some apparent excavation onto his side of the property line as well as the discharge of muddy water onto his property. This inspector estimated the area of disturbance on Mr. Finley's property to be approximately 0.1 acre. (It appears the equipment operator was attempting to deposit the muddy water above the drainage channel and towards a 24" concrete drainage culvert beneath Highway 85, 10+ feet south of the SW TKO/Finley property line). The Division considers the matter of discharge of the sediment water and possible excavation onto Mr. Finley's property to be a possible violation of Section 34-32.5-116(4)(1) and Construction Material Rule 3.1,5(3) for failure to protect areas outside the affected lands from slides or other damage. Please see Page 4 for Corrective Actions. • This inspector noted a thick mud layer in the bottom of the box culvert, an 18" high water line above the mud layer, within the CDOT concrete box culvert. There did not appear to be any excessive sedimentation on Mr. Chavers' property to the west. There was no remaining evidence of discharge water on the west side of Highway 85, in the area of the Porter Seepage Ditch.