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(Page 2) MINE ID # OR PROSPECTING ID # M-2002-106 INSPECTION DATE 3/10/05 OBSERVATIONS INSPECTOR'S INITIALS RCO This inspection was pertormed by the Division as part of its monitoring of Construction Materials 110 permits. The operator was contacted about the inspection. The operator's representative named on page one was present during the inspection. This inspection and meeting with the operator were primarily to ensure that this site is delineated from the pre-law disturbance and becomes adequately delineated in the field, and that a current bondamount may be estimated forthe site. (For explanation of the circumstances of the incomplete documentation of this site, please refer to file correspondence from 2002 and 2003, and the 2002 inspection report.) The site contains two pits that are adjacent to each other along a shallow Swale. The present operator's father (who is the original permittee) began bentonite excavation in the northern pit in the 1960s and into the 1970s. The permit was obtained in 1978 (originally under permit number M-1978-126 HR), atwhich time excavation began to the south. The permit was approved for 3.00 acres, and was not intended to include the older, north pit. The present operator, Larry Mondragon, did perform some reclamation earthwork (bank shaping and topsoil replacement) in the old north pit, with the intention of creating a fish pond. The present operator has also continued excavation in the permitted south pit. Due to another DMG permit having the same file number as this one, the office has assigned a "new" file number to this site: M-2002-106. Because of limitations of the maps and boundary description in the 1978 file, neither this office northe present operator have a clear idea of where exactly the originally intended 3.00-acre permit area was to be located. During the inspection, this inspector and the operator set five steel T-posts at various locations along the margins of the current disturbance, and placed so as to totally encompass the current disturbance. The posts' locations (temporary corners used only for initial calculations) were measured during the inspection, and the land area they delineate was calculated later at the Division's office. The temporary corner locations were added to the Division's 2002 sketch map of the site, a copy ofwhich is included with this report. The area delineated by these five posts measures 2.17 acres, and includes all current disturbance. The site is predominated by the south pit and several small stockpiles of overburden around the margins (to be replaced as growth medium during reclamation). Also within the 2.17-acre area are some equipment roadways and shallow test pits. These are shown on the map. The permit area is to be 3.00 acres total, and the operator stated his intention of possibly expanding the pit to the south or east. An additional area of 0.83 acres may be added to achieve the total of 3.00 acres. Two possible additions (to the south and to the east) are added to the existing map, and are both included with this report. It should be noted that sufficient room outside the footprint of the various piles of overburden must be included in the permitted acreage to allow passage or maneuvering of equipment during mining or reclamation. Likewise, though the existing pit highwall is not near the proposed boundary, future mining must not encroach closer than 25 feet to any final boundary. Sufficient room must be allowed for equipment to reduce the highwall during reclamation. One item of note is that where the operator graded and seeded the pre-law pit, it was becoming slightly eroded, it was very weedy, and no grass has become established. This area is outside the jurisdiction of the Division, but it may be used as an example of what types of practices should be employed or avoided in the maintenance and reclamation of the permitted area. The operator should review the enclosed maps and respond to this office as to whether the boundary location is acceptable. The operator should also review the existing mining and reclamation plans, and state whetherthey are to remain or be revised. At that time, the Division will calculate a reasonable bond amount and inform the operator of the figure. The operatorwill have up to 60 days to provide the bond. 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. Cont.