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(Page 2) MINE ID # OR PROSPECTING ID # M-2001-051 INSPECTION DATE 03/07/06 INSPECTOR'S INITIALS ESC This was an inspection of the Home Office Mine, File No. M-1977-439 conducted by Erica Crosby of the Colorado Division of Minerals & Geology. Eric Reckentine and Gary Knox were present during the inspection. The inspection of the site was limited to Area F as delineated in Amendment Application O1 (AM-O1) due to its proximity to the North Taft Hill Expansion Site, Permit No. M-2001-051 that was also being inspected by the Division. A 112 Construction Materials permit was issued for the Home office Mine on October 26, 1978. The permit area is 730.5 acres. The postmining land use is wildlife habitat. The Division holds a bond in the amount of $117,600.00. Mining and dewatering was actively taking place in Area F. AM-O1 was approved by the Division on October 23, 1987. In the AM-Ol application, Area F is a 57.2-acre parcel whereas 39.5 acres is to be mined. Immediately north is the North Taft Hill Expansion Site, Permit No. M-2001-051. The berm that was to separate the two pits has been mined through. The North Taft Hill Expansion Site mine plan depicts that mining will extend directly up to the permit boundary. The pit will be reclaimed to a groundwater-exposed pond (separate from the Home Office proposed pond). However, the Amendment O1 (AM-O1) application for the Home Office Sites states that there will be a 25 foot buffer from the edge of the adjacent property and maintain a 5.9 acre buffer area around the mining area (depicted as Area F on the mine plan maps dated 7/31/87). Based on the mining of the berm between the two pits, the operator is not following the approved mining and reclamation plan for the Home Office Site. Mining was not to occur within 25 feet of the permit area as noted on the mine plan maps and text in AM-O1. In order to correct this problem, the operator must file a revision to the permit to address mining up to the property line, and connecting with the North Taft Hill Expansion Site. Because the operator increased the area of affected land by mining through the berm, an amendment to the permit must be filed. Rule 1.1(6) of the Construction Materials Rules and Regulations defines "amendment" as a change in the permit or an application which increases the acreage of the affected land, or which has a significant effect upon the approved or proposed Reclamation Plan. See page 3 for corrective action due dates. The operator should also be reminded that if they intend to change the reclamation plan to have one large pond connecting the North Taft Hill Expansion Site the Home Office Pit, a revision to both of the permits will need to be approved by the Division. I & 8 Contact Address j' CE NAME Eric Reckentine j' BL OPERATOR Western Mobile Northern, Inc. r FS STREET 1800 North Taft Hill Rd. T' HW CITY/STATE/ZTP Fort Collins, Colorado 80521 j' HMWMD (CH) j' SE cc: Carl Mount; DMG j' WQCD (CH)