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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1995-035 <br />INSPECTION DATfi 12/20/05 INSPECTOR'S INITIALS ESC <br />0898RVATION3 <br />This was an inspection of the Wellington Downs Pit conducted by Erica Crosby of the Colorado <br />Division of Minerals & Geology. Mike Duster of Connell Resources was present during the <br />inspection. <br />The Wellington Downs Pit is located approximately 1 1/2 miles west of Timnath in Larimer <br />County, Colorado. The 112 Mining and Reclamation Permit was issued to Connell Resources on <br />January 22, 1996 for a permit area of 109.5 acres. The Division holds a financial warranty <br />in the amount of $139,000.00. <br />A mine identification sign was posted at the mine entrance. Existing fences on the property <br />delineate the permit area. Mining of the site is complete at reclamation of the pit began in <br />2004 with construction of the clay liner. Two small islands have been created in the middle <br />of the pit, as noted on the reclamation plan map. Product piles remain in the bottom of the <br />pit that will be removed as needed in 2006. The asphalt entry area and road have not been <br />removed. The permit does not reference that these structures will stay as a part of the <br />reclamation plan, therefore, they must be reclaimed to the reclamation standards noted in the <br />permit. <br />The approved postmining land use is developed water resources. The site has been reclaimed <br />using a compacted shale backfill along the pit elopes. Connell Resources provided the <br />Division with a letter from the Office of the State Engineer documentating that the compacted ~ <br />clay liner has passed the design standard for the States lining criteria. The pit elopes and <br />upland areas were revegetated in the spring of 2005. The operator has been mowing the <br />grasses to help control the annual weeds. <br />The operator verbally requested that the financial warranty be reduced to account for <br />reclamation performed on site. In order to reduce the financial liability the operator must <br />do the following; <br />o Request a financial warranty reduction in writing in accordance with Rule 4.14 of the <br />Construction Materials Rules and Regulations. If the operator submits a complete <br />request within 60-days of this inspection, then the site will not need to be inspected <br />again (this inspection may count for the required inspection if timely filed). <br />o A bond will need to be retained for any remaining seeding, weed control and planting of <br />trees/shrubs on site and removal of the asphalt pad and road. <br />In order to obtain a total release of the site, the following must be completed; <br />o the product piles moat be removed from the bottom of the pit, <br />o the asphalt pad and road must be removed and area reclaimed, <br />o the vegetation on site must be diverse and well established (due to the presence of <br />annual weeds, the revegetation standard has not been achieved at this point in time), <br />and <br />o planting of trees and shrubs is part of the final reclamation plan consisting of a <br />minimum of 100 trees and a minimum 100 shrubs (see attached copy of reclamation plan). <br />Only a few cluster of trees were noted on site and it does not appear that the tree and <br />shrub standard has been met. <br />