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(Page 2) MINE ID # OR PROSPECTING ID # M-2000-032 INSPECTION DATE 5-13-2003 OBSERVATIONS INSPECTOR'S INITIALS SSS CBM This was a routine monitoring inspection conducted as part of DMG's ongoing monitoring program for permitted mines in Colorado. Additionally, this inspection will evaluate current site conditions for use in updating the reclamation cost estimate to determine if the current reclamation bond is adequate to reclaim the site. The mine identification sign and affected area boundary markers are in place and in compliance with Rule 3.1.12. No significant infestations of noxious or other problematic weeds were noted on site during this inspection. No significant erosional features were noted on the affected areas of the site. Topsoil stockpiles have been in place for over 1 year and are not stabilized as required by Rule 3.1.9. Some minimal vegetation, mostly annual weeds, have grown on the stockpiles, but the piles are still mostly bare. Failure to stabilize these materials is noted as a problem, with required corrective actions, on the last page of this report. Mining and pit backfilling are currently on-going. The operation has mined out an estimated 8.5-9 acres and completed backfilling an estimated 3 acres. This leaves an excavated pit approximately 5.5-6 acres in size. The mining and reclamation plans indicate that at no point in the operation would the pit be larger than 3 acres in size. This maximum size of pit was a commitment made in the permitting process to keep the reclamation cost reduced. Because the pit is required to be completely backfilled and because there is a shortage of on-site fill material, all fill for backfilling the excess pit area must be imported at significant cost. This situation results in a condition where the site is drastically under-bonded. Section 34-32.5- 117(6)(a) of the Land Reclamation Act for the Extraction of Construction Materials specifies that a financial warranty shall be maintained in good standing for the life of the permit. This deviation from the mining and reclamation plans is noted as a problem, with required corrective actions, on the last page of this report. To ensure stability of permanent man-made structures within 200 feet of the affected area, the operator made a commitment, in the mining plan, to mine the north, west and south pit perimeters at a 3H:1 V slope when excavation progressed to within 100 feet of the permit boundary. The current pit slope on the north side of the pit is well within the 100 foot zone and is currently a vertical slope. To ensure the stability of structures north of and adjacent to the north permit boundary, the operator must complete backfilling of the north highwall , to a grade no steeper than 3H:1 V by no later than June 30, 2003. This is noted as a problem, with required corrective actions, on the last page of this report. In an effort to ensure the financial warranty remains adequate to reclaim this site per the requirements of the approved reclamation plan, DMG has updated the reclamation cost estimate (copy enclosed). Clearly, the site is currently under-bonded. Therefore, pursuant to Section 34-32.5-117(4) of the Colorado Land Reclamation Act, adequate financial warranty must be submitted to DMG within 60 days of the mailing date of this report. Please review the enclosed figures as soon as possible and contact our office if any calculation errors are noted. Responses to this inspection report should be directed to Steve Shuey at the Division of Minerals and Geology, Grand Junction Field Office, 101 South 3r° Street, Room 301, Grand Junction, Colorado 81501, phone number 970-243-6368. I & E Contact Address cc: Carl Mount -DMG Denver Office NAME Martin Azcarraga OPERATOR M.A. Concrete Construction STREET 2323 River Road CITY/STATE/ZIP Grand Junction Colorado 81505 ^ CE ^ BL ^ FS ^ HW ^ HMWMD (CH) ^ SE ^ WOCD (CHI ^ OTHER