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(Page 2) M(NE ID q OR PROSPECTING fD q M-1980__lA9 INSPECTOR'S iNITiALS ESC INSPECTION DATF. 17./14/06 - OH88RVATION3 This was a pre operation inspection of the Hokeatra Pit conducted by Erica Crosby of the Colorado Division of Reclamation, Mining and Safr_ty. Greg Clelson of weld County and Jennifer Lee of Applegate Group, Inc. were present during the lnapecLion. The site is located less than one mile north of Firestone in weld County, Colorado. The site is immediately south of the St- Vrain River and immediately east of tnte rstate 25. The 112c amendment application was received by the Division on October 5, 2006 to change the reclamation plan from wildlife habitat to developed water resources. Mining will occur in three phases. Mining ie nearly complete in Phase [I and will be lined with an engineered compacted clay liner. The elopes xill be 3h:ly and have a capacity of din acre-feat. Phase III and IV will b¢ lined with a slurry wall prior to mining and will have a combined capacity of 505 acre feet of water storage. The application is currently under review by the Division. 'Che major issues regarding the amendment is the stability of the riverside and pit aide banks adjacent to the St. Vrain River if a flood event were to occur and protection of p¢rmanent man made structures (including gas lines and wells) adjacent to the pie and river. Phase II ie actively being mined and dewatered during he inapection. The pit is approximately 200 feet from the St. Vrain River. Concrete rubble and netting hat been placed along the riverside corridor just sate of I-25 as well as r_he planting of willows and cattails. The operator was not sure who was responsible or when the riverside banks were stabilized. The operator will need to assess the condition of the riverside armoring to determine if it is adequate for flood control mitigation. Phases fII and IV have yet c.o be mined, therefore the aperaror has more discretion as to the proximity of the pi[ to the river and the level of flood mitigation that may be required. A numb¢r. of wells and gas lines were observed during the inapection. The operator will need Co address how theca structures will be protected in the event of a flood. There were some structures noted during the inapection [hat were not identified on the map. The structures include the ditch on the east arde of [he property and the water line east of the ditch. 'Che operator will need to LncLude these structures on the map and describe how they will be protected during the pcoposed mining and reclamation- The application states that the permit area is currently 120 acres. However, information in the Division's files indicates that the permit area is approximately 340 acres. Th¢ operator will need to clarify this dlsccepancy. I b B Contact Addraea CE NAME Mr. Greg N¢laon HL OPERATOR weld County FS STREET PO Sox 758 HW CTTY/STATE/2IP Greeley, CO 80632 HMwMD ICH) SE ~~ WQCD ICHI Cc: Carl Mount; ORMS Jennifer- Lee; Applegate Group, Lne.