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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1992-054 <br />INSPECTION DATE 5/24/06 INSPECTOR'S INITIALS RCO <br />OBSERVATIONS <br />This inspection was pertormed by the Division as part of its monitoring of Construction Materials 112c permits. Through <br />telephone conversation with the operator prior to the inspection, approval was given to inspect the site without additional <br />contact or for scheduling a specific date. The operator was not at the site during the inspection. Several of Gosney and Sons <br />excavation and crusher employees were operating onsite during the inspection, in the new (southern) Phase D. <br />The old original pit (now in the area designated as Phase A) was inspected first. The site is accessed by the pre-existing La <br />Boca Canyon road, but this road is not planned to be the road to access the site from Hwy 172 (a new access and entrance <br />location has been constructed along Phase D). The entrance into the old pit was closed by portable stock sections. There was <br />a permit ID sign posted there in the past, but it was not visible at this inspection. This is not a problem, since this is no longer <br />the entrance to the permitted area, and there is a new sign at the new entrance. <br />The old pit has been partially reclaimed, which includes the removal of some of the old stockpiled pitrun. The southwest pit wall <br />has been regraded and topsoiled. Most of the old topsoil stockpile still exists above that reclaimed highwall. Very little <br />equipment or other items are stored in the pit now. The east wall of the pit exhibits recent removal of material and has not been <br />regraded or reclaimed. The wall is short (5 feet or less vertical) and has 1.5:1 gradient. No runoff or sediment can leave the <br />pit. Not much more material can be removed before reaching the pit limit on the east end, and the operator should consider <br />pertorming reclamation there soon. There is still a lot of area to excavate in the west end of this Phase A, beyond the limits of <br />the present pit. <br />The entrance road to the new Phase D pit is in its approved location, which is several hundred feet north ofthe southern end of <br />the permit area. A permit ID sign is posted at the new access gate. All new Phase D activity is occurring north of this access <br />road. It is below the road along the western permit boundary that connects all phases, set back appropriately from the drainage <br />gulch to the north and from the highway fence to the east. All sediment and runoff appear to be contained in the permit area, <br />and all sediment from the new access road earthwork is controlled by excelsior logs. <br />Mining activity consists of stripping topsoil, stripping overburden, excavation of aggregate, and crushing it to spec. The topsoil <br />is placed in a graded stockpile along the north edge of the pit, with all overburden dozed up in a temporary pile along the west <br />edge of the phase. Processing equipment is set up adjacent to the pit. All activities are in compliance with the approved plan. <br />The operator is reminded to seed the topsoil stockpile to grass if no topsoil is to be replaced by next year. At this time there <br />was no weed growth observed on the topsoil or overburden. <br />No further items were observed during the inspection. Responses to this inspection report should be directed to the Division of <br />Minerals and Geology, 701 Camino del Rio, Room 125, Durango, Colorado 81301, Attn: Bob Oswald; phone no.970-247-5193. <br />18. E Contact Address <br />NAME Todd Fisher <br />OPERATOR LBCR, LLC <br />STREET 1440 Blue Sage Ct. <br />CITY/STATEIZIP Boulder, CO 80305 <br />cc: Bruce Humphries, DMG <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WOCD (CH) <br />^ OTHER <br />