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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-2000-144 <br />INSPECTION DATE January 5. 2006 INSPECTOR'S INITIALS CBM <br />OBSERVATIONS <br />This was an inspection conducted at the request of the operator to determine whether the site is eligible for partial acreage <br />release of all acreage east of the Sinclair petroleum line right of way. <br />The area east of the petroleum line has been partially mined and a sloped and topsoiled gravel pit pond exists directly east of <br />the line. This pond was just seeded this fall, according to the operator, and shows no vegetation emergence and almost no <br />cover. <br />A check of the permit indicates that the permitted end land use fro the entire North LaPoudre permit area is approved for <br />recreation. Both phases of the mine (east and west of the pipeline) were to be reclaimed to 10-12 acre ponds. The area east <br />of the sloped gravel pit pond is in the process of being leveled and developed for commercial use. In order to obtain release for <br />this area, the operator will have to file an amendment with the Division of Minerals and Geology (DMG) to change the end land <br />use from recreational pond to commercial development with small pond or whatever the configuration planned. A copy of the <br />development plan now being put in to place may help determine what the planned final configuration is and also allow a <br />determination as to whether there is a performance warranty in place to assure that the site will be stabilized if the development <br />is not built out. <br />Tho area east of the petroleum line right of way cannot be released at this time. <br />No problems of possible violations were observed during this inspection. <br />Responses to this inspection report should be directed to Carl B. Mount at the Division of Minerals and Geology, Denver Office, <br />1313 Sherman Street, Room 215, Denver, Colorado 80203, phone number 303-866-3863. <br />I & E Contact Address cc: ^ CE <br />NAME Mr. Jeff Grego ^ BL <br />OPERATOR Hall-Irwin Construction Co. ^ FS <br />STREET 301 Centennial Drive ^ Hyy <br />CITY/STATEIZIP Milliken. CO 80543 ^ HMWMD (CH) <br />^ SE <br />^ WOCD (CH) <br />^ OTHER <br />