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(Page 2) MINE ID # OR PROSPECTING ID # M-1980-146 INSPECTION DATE 2/3/04 INSPECTOR'S INITIALS RCO OBSERVATIONS This inspection was pertormed by the Division as part of its monitoring of Construction Materials 112c permits and in response to the operator's request for an inspection to check reclamation performed. The operator was contacted about a tentative time for the inspection. The operator's representative named on page one was present throughout the inspection. A snowcover of up to 6 inches on some of the site did not prevent the inspection. The site was active at the time of the inspection. Topsoil and overburden were being stripped in the northern end of the site (in Areas B and C) and pushed into separate piles along the margins of the approved affected area. Trees and brush had already been stripped from several more acres in that area and windrowed. These materials will each be replaced in sequence on the mined and graded areas. The highwalls facing the pit are in various stages of reclamation: some are actively being mined at gradient by pushing material down to the floor; others are partially graded to near the final gradient; and some have been graded to 3:1, and parts of those have been topsoiled (mainly in Area 1A). No highwalls exhibit the vertical faces formerly present at the pit. The operator appears to be following the phased mining plan. The operator should check the file for the minimum approved depth to replace topsoil. A portion of the western pit floor and sections of the lower highwalls have further exposed the troublesome layer of conglomerate. The operator is continuing to excavate this material, but with difficulty. It is several feet thick, raised off the floor by about 15 feet, and seems to be strongly cemented. A hydraulic hammer on an excavator was occupied with breaking material from one portion, while another portion had been drilled and set with explosives. The operator must reduce itto a size the crusher will accept, or else raise the floor of the pit up above the level of the conglomerate. Since the pit is to expand by many more acres, at this time the operator plans to mine the conglomerate and maintain the floor at its present level. No seeded areas were observed, though the operator stated that a few areas might be seeded this winter if the ground was graded and still workable. The revegetation seed mix should be reviewed prior to purchasing and applying seed. An approximate estimate of the reclamation costs could be made at this time, but its precision is limited by the quality of the existing map in the file. Large portions of the permit area are not depicted, and out-of-date details (mainly topography) make this map only partly useful. This office will begin to estimate the costs, but the operator is encouraged to proceed with a new survey and map, to be submitted to this office. Anew map is not a requirement, but may pay for itself if it can help produce better reclamation figures. When the new figures are prepared they will be submitted to the operator for review. The site is bonded by separate bonds, posted with DMG and BLM, for disturbance on non-BLM land and BLM-managed land, respectively. The new estimated figures will be separated to account for this. The operator must report all reclamation pertormed and all areas affected by mining, in the annual reports. Please ensure that new areas which are affected, especially under lease with BLM, are also approved as permitted phases under the DMG permit. 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. I& E Contact Address NAME OPERATOR STREET CITY/STATE2IP Debbie Baker C & J Gravel Products. Inc. 27661 Hwy. 160 East Durango. CO 81301 cc: Harry Posey, DMG ^ CE ^ BL ^ FS ^ HW ^ HMWMD (CH) ^ SE ^ WOCD (CH) ^ OTHER cc: Loren W ickstrom, BLM, 15 Burnett Ct., Durango, CO 81301