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(Page 2} MINE ID # OR PROSPECTING ID #_ INSPECTION DATE INSPECTOR'S INITIALS SSS OBSERVATIONS This was a routine monitoring inspection conducted as part of DMG's ongoing monitoring program for permitted mine sites in Colorado. The inspection was also conducted to evaluate current site conditions for use in updating the reclamation cost estimate to ensure adequate financial warranty is in place for reclamation of this 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. The entire site is currently disturbed, including the western parcel. Backfilling has been completed on approximately 9.5 acres of the 28 acres to be backfilled to grade for use as industrial commercial property on the north side of the site. Another estimated 4.5 acres of this area appears to be 3/4 backfilled. It appears that there may be a shortage of on-site overburden material to complete backfilling of the 28 acres, not to mention the other pit slopes that require backfilling to final grade. DMG estimates between 130,000 and 150,000 cubic yards of on-site overburden are available for backfilling while calculations indicate that over 700,000 are required to finish reclamation per the approved reclamation plan. The operator will need to address this problem that is noted, with corrective actions and a correction due date, on the last page of this report. Correction of this problem will either require documentation that adequate overburden exists on site to complete the approved backfilling, revision of the permit to indicate a smaller area requiring backfill material, or revision of the permit to indicate an off-site source and method for acquiring the shortfall of overburden. No revegetation has been accomplished on regraded areas of the site. There is a pile of old asphalt and a pile of broken concrete on site that are to be processed and stockpiled as product for sale. The approved permit does not include this process and the current reclamation cost estimate does not include costs for disposal of these large pre-process piles. These piles would need to be either removed from site or buried on site at the base of a highwall. This is noted as a problem, with corrective actions and a correction due date, on the last page of this report. United will need to remove this unprocessed material from the site and dispose of it properly, or revise the permit to incorporate this process in the approved mining plan. Costs for proper disposal of the unprocessed material stockpiles will need to be included,in the reclamation cost estimate. The corrective actions for problems described above will most likely require an adjustment to the reclamation cost estimate. Therefore, DMG will calculate the updated cost estimate when these problem issues have been resolved. Responses to this inspection report should be directed to Steve Shuey at the Division of Minerals and Geology, Grand Junction Field Office, 101 South 3rO Street, Room 301, Grand Junction, Colorado 81501, phone number 970-243-6368. I & E Contact Address cc: ^ CE NAME Richard Johnson ^ BL OPERATOR United Companies o f Mesa Countv ^ FS STREET P.O. Box 3609 ^ HW CITY/STATE/ZIP Grand Junction. Col orado 81502 ^ HMWMD (CH) ^ SE ^ WOCD (CH) ^ OTHER