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(Page 2) MINE ID # OR PROSPECTING ID # M-1979-089 INSPECTION DATE 02/28/2002 INSPECTOR'S INITIALS SSS OBSERVATIONS This was apre-operation inspection for the area proposed to be incorporated into the 23 Road Pit through the pending application for Amendment No. 3 to Permit No. M-1979-089. The required sign notice of application for an amendment was observed at the site. The south end of the proposed addition area was previously included in the permit area for this site, but was removed so Mr. John Schmahl, the landowner, could use the area for a sales yard for his various rock products imported from another permitted site. This area is a graveled pad with piles of various types of boulders, sandstone slabs, riprap rock, etc. The proposed acreage north of this parcel is in various types of agriculture, some small sections of rangeland, and a residence with numerous storage buildings and large trees. The southwestern edge of the proposed acreage, adjacent to previously excavated ponds, is occupied by numerous mature cottonwood trees that the Colorado Division of Wildlife has expressed concern for preserving as much as is feasible, There are numerous permanent man-made structures on or within 200 feet of the new proposed affected area that are not included on the application maps and are not adequately identified in the appropriate exhibits of the application. These structures, and their owners will need to be identified in the application, and notified appropriately of the pending application. Noxious and/or problematic weed infestation was observed within the proposed affected area. The infestation, if not controlled, will most likely hinder and/or delay successful reclamation and contribute to off-site spreading and establishment,of these weeds. A weed control plan developed in consultation with, and approved by, the appropriate local weed control authority must be submitted with this amendment application, if one is not already part of the approved permit. The application maps do not contain the required information for proposed affected area, mining direction, current vegetation types. A second pre-operation inspection, incorporating how the proposed area ties into the existing affected area, may be necessary in order to calculate the amended reclamation liability for determining an amount for the financial warranty. Whether or not the second pre-operation inspection is necessary, the reclamation cost estimate will be recalculated when the AM-03 process is complete. Responses to this inspection report should be directed to Steve Shuey at the Division of Minerals and Geology, Grand Junction Field Office, 101 South 3`" Street, Room 301, Grand Junction, Colorado 81501, phone number 970-243-6368. I & E Contact Address cc: ^ CE NAME Ed Settle ^ BL OPERATOR Grand Junction Pipe and Su nolv ^ FS STREET P. O. Box 1849 ^ Hy~ CITY/STATE/ZIP Grand Junction. Colorado 8 1502 ^ HMWMD (CH) ^ SE ^ WOCD (CH) ^ OTHER